No Taxpayer-Funded Settlement Slush Funds Act of 2026

Key Points

• This bill stops the government from using taxpayer money to pay legal settlements or awards to the President, Vice President, their family members, or their businesses. It also blocks these payments for cabinet members and high-level political appointees.
• The proposal specifically bans federal funds from being used for a May 2026 settlement between Trump and the IRS. It also prohibits payments for any legal claims related to the January 6 Capitol attack or interference in the 2016 election.
• The Treasury Department would be required to notify Congress 120 days before making any settlement payment over $250,000. For any payment over $100,000, the government must provide a report to Congress detailing who received the money and the facts of the case.
• These rules would apply to all settlements made on or after January 20, 2025. If a payment is made that violates these rules, the Attorney General is authorized to sue the person who received the money to get it back for the government.

Impact Analysis

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