Stop Settlement Slush Funds Act of 2023

Received in the Senate and Read twice and referred to the Committee on the Judiciary.

Jan 16, 2024

This bill prohibits the federal government from entering into or enforcing settlement agreements that direct payments to third parties, with exceptions for payments that remedy actual harm caused by the defendant or compensate for services rendered in the case. Federal officials who violate this prohibition may be removed from office or required to forfeit related funds to the government. Agencies must submit annual reports to the Congressional Budget Office for seven years detailing the parties, funding sources, and fund distribution in permitted settlement agreements, and agency Inspectors General must report annually on any agreements that violate the bill's requirements.

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Stop Settlement Slush Funds Act of 2023 This bill prohibits the federal government from entering into or enforcing a settlement agreement on behalf of the United States that provides for a payment to any person or entity other than the United States. The bill provides exceptions to allow payments that (1) remedy actual harm (including to the environment) caused by the party making the payment, or (2) constitute a payment for services rendered in connection with the case. Government officials or agents who violate this prohibition may be removed from office or required to forfeit to the government any money they hold for such purposes to which they may otherwise be entitled. Agencies must report annually for seven years to the Congressional Budget Office about the parties, funding sources, and distribution of funds for their settlement agreements permitted by the exceptions in this bill. The Office of Inspector General for each agency must also report annually on any settlement agreements that violate the bill's requirements.