Congress·In Committee·H.R. 7387

Stop Settlement Slush Funds Act of 2026

Federal Settlements: Restricting Third-Party Payments

5 months ago·View on Congress.gov·Read full text

This bill is currently in the early stages of the legislative process after being sent to the House Committee on the Judiciary. It is actively moving through the system, but no future hearings or votes have been scheduled yet. There is no companion bill listed for this legislation at this time.

Legislative Progress

House

Senate

President

Law

Unlikely to pass

This bill is supported only by one party and deals with a controversial legal practice that usually leads to a stalemate in the Senate.

Key Points

This bill stops government officials from forcing companies or individuals to give money to outside groups as part of a legal settlement. In the past, some agencies allowed defendants to pay non-profit groups instead of paying the government.
Under this plan, settlement money can only be used for two things. It can go to the U.S. Treasury or be used to directly fix the problem the defendant caused. For example, if a company broke environmental laws, the money could be used to clean up the specific area they damaged.
Government employees who break these rules would face the same punishments as people who steal or mismanage public funds. This is meant to ensure that settlement money is not used to support political causes or private interests.
Federal agencies would have to create a public report every year for the next seven years listing any settlements where money went to someone other than the government. These reports would help the public and Congress see exactly where the money is going and who is receiving it.

Impact Analysis

Govbase has not yet run an impact analysis on this legislation.

Milestones

2 milestones2 actions

Feb 5, 2026House

Referred to the House Committee on the Judiciary.

Feb 5, 2026

Introduced in House

The bill was officially filed and given a number. It now enters the legislative queue.

Votes

No votes have been recorded for this legislation yet.

News

No related news coverage found for this legislation yet.

Source Information

Document Type

Congressional Bill

Official Title

Stop Settlement Slush Funds Act of 2026

Bill NumberHR 7387

Congress119th Congress

ChamberHouse of Representatives

Latest ActionReferred to the House Committee on the Judiciary.

Data Sources

Congress.gov

Official legislative information

Read Full Bill Text

Sponsor

Cosponsors

(9)

R: 9

Analysis generated by AI. Always verify with official sources.