SLUSH FUND Act of 2026
- Bill Number
- H.R. 8910
- Origin Chamber
- House
- Congress
- 119th Congress, Session 2
- Policy Area
- Taxation
- Status
- Introduced
- Latest Action
- 2026-05-19: Referred to the House Committee on Ways and Means.
- Last Updated
- 2026-06-05T15:36:49Z
AI-Generated Summary
Purpose This legislation amends the Internal Revenue Code of 1986 to impose a tax on certain payments from settlement funds connected to civil lawsuits filed against the United States by former Presidents or their close associates. It aims to tax and report these payments at a 100 percent rate while requiring public disclosure.
Key Provisions
- Tax Imposition: A new Chapter 50B is added, imposing a tax equal to 100 percent of any "specified settlement fund payment" received in a taxable year.
- Definition of Terms:
- A "specified settlement fund payment" is any amount from a fund, trust, or account derived from the outcome of a civil action filed by a "specified person" against the United States or its agencies.
- A "specified person" includes any former President, their spouse or close relatives (as defined under section 152(d)(2)), or entities controlled by them.
- Tax Treatment: These payments are excluded from gross income under Chapter 1 but are subject to the new tax, treated as a Subtitle A tax for administrative purposes. No deduction is allowed under section 275.
- Penalties: A new section 6660 imposes a 50 percent penalty for willful failure to pay the tax or attempts to evade it.
- Reporting Requirements: A new section 6050BB requires trustees, administrators, or fiduciaries to file annual returns detailing payments and recipient details, with copies sent to recipients. The IRS must publicly disclose these returns within one month.
- Additional Penalty: A $10,000 fine per failure to file the required return under section 6652(q), unless due to reasonable cause.
- Effective Date: The tax and reporting rules apply to amounts received or paid on or after May 20, 2026; penalty provisions apply to taxable years ending on or after that date.
Significant Changes to Existing Law
- Creates new Chapter 50B in Subtitle D and new sections 5000E, 6050BB, and 6660.
- Amends section 275(a)(6) to deny deductions for the new tax.
- Amends section 6652 to add a specific failure-to-file penalty.
- Introduces mandatory public disclosure of certain tax-related returns, which is not standard for most individual tax information.
Potential Impacts
- Government Agencies: Increases IRS responsibilities for collecting the tax, enforcing penalties, processing new returns, and managing public disclosures, potentially requiring new administrative resources.
- Citizens and Recipients: Directly affects individuals or entities receiving funds from qualifying settlements by taxing them fully and subjecting them to reporting and public scrutiny.
- International Relations: No direct provisions address foreign entities or relations, though the focus on U.S. government settlements could indirectly affect legal strategies in cases involving former officials.
Main Stakeholders Affected
- Former Presidents of the United States and members of their families or controlled entities.
- Trustees, administrators, and fiduciaries of settlement funds.
- The Internal Revenue Service (for enforcement and disclosure).
- Recipients of payments from such funds.
Notable Legal, Constitutional, or Political Implications
- The legislation creates a targeted tax regime based on the identity of the plaintiff in prior lawsuits, which could raise questions about equal protection or selective application under the Constitution, though the bill applies prospectively to all qualifying persons.
- Public disclosure of returns introduces a new transparency mechanism not typical for private tax matters.
- The 100 percent tax rate effectively nullifies the economic benefit of such payments while preserving their exclusion from regular income tax calculations.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (46)
Rep. Doggett, Lloyd [D-TX-37], Rep. Larson, John B. [D-CT-1], Rep. Davis, Danny K. [D-IL-7], Rep. Sánchez, Linda T. [D-CA-38], Rep. Sewell, Terri A. [D-AL-7], Rep. DelBene, Suzan K. [D-WA-1], Rep. Chu, Judy [D-CA-28], Rep. Moore, Gwen [D-WI-4], Rep. Boyle, Brendan F. [D-PA-2], Rep. Beyer, Donald S. [D-VA-8], Rep. Evans, Dwight [D-PA-3], Rep. Schneider, Bradley Scott [D-IL-10], Rep. Panetta, Jimmy [D-CA-19], Rep. Gomez, Jimmy [D-CA-34], Rep. Horsford, Steven [D-NV-4], Rep. Suozzi, Thomas R. [D-NY-3], Rep. Mannion, John W. [D-NY-22], Rep. Quigley, Mike [D-IL-5], Rep. Watson Coleman, Bonnie [D-NJ-12], Rep. Amo, Gabe [D-RI-1], Rep. Jayapal, Pramila [D-WA-7], Rep. Brown, Shontel M. [D-OH-11], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Pingree, Chellie [D-ME-1], Rep. Crockett, Jasmine [D-TX-30], Rep. Garamendi, John [D-CA-8], Rep. DeLauro, Rosa L. [D-CT-3], Rep. Frankel, Lois [D-FL-22], Rep. Khanna, Ro [D-CA-17], Rep. Dean, Madeleine [D-PA-4], Rep. Subramanyam, Suhas [D-VA-10], Rep. Schakowsky, Janice D. [D-IL-9], Rep. Kennedy, Timothy M. [D-NY-26], Rep. Stansbury, Melanie A. [D-NM-1], Rep. Cisneros, Gilbert Ray [D-CA-31], Rep. Matsui, Doris O. [D-CA-7], Rep. Neguse, Joe [D-CO-2], Rep. Mullin, Kevin [D-CA-15], Rep. Huffman, Jared [D-CA-2], Rep. Williams, Nikema [D-GA-5], Rep. Foushee, Valerie P. [D-NC-4], Rep. Bell, Wesley [D-MO-1], Rep. Garcia, Robert [D-CA-42], Rep. Scholten, Hillary J. [D-MI-3], Rep. Pocan, Mark [D-WI-2], Rep. Salinas, Andrea [D-OR-6]
Recent Actions
- 2026-05-19: Referred to the House Committee on Ways and Means.
- 2026-05-19: Introduced in House
- 2026-05-19: Introduced in House
Bill Versions
- Stop Letting United States Heads Funnel Unauthorized Nontransparent Dollars Act of 2026 — issued 2026-05-19 — PDF (8 pages)