SLUSH FUND Act of 2026

Key Points

• This bill creates a new 100 percent tax on money that former presidents and their families receive from winning or settling lawsuits against the federal government. If they receive a legal payout from the U.S. government, they would effectively have to give all of that money back to the IRS.
• The tax applies to former presidents, their spouses, and their close relatives. It also covers any businesses or organizations that these individuals control to ensure they cannot bypass the tax through a company.
• If someone tries to avoid paying this tax on purpose, they would face an extra penalty equal to 50 percent of the original amount. This means they could end up owing the government more money than they actually received from the legal settlement.
• The government would be required to make these payment records public. Within one month of receiving a report about a settlement payment, the IRS must share that information with the public so people can see who is getting paid and how much.
• The bill aims to prevent former leaders from using legal settlements as a way to get money from the government without public oversight. If passed, it would apply to any payments received starting May 20, 2026.

Impact Analysis

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