No Taxpayer-Funded Settlement Slush Funds Act of 2026

Bill Number

H.R. 8914

Origin Chamber

House

Congress

119th Congress, Session 2

Policy Area

Government Operations and Politics

Status

Introduced

Latest Action

2026-05-20: Referred to the House Committee on the Judiciary.

Last Updated

2026-07-08T21:26:44Z

AI-Generated Summary

Purpose

The legislation, titled the "No Taxpayer-Funded Settlement Slush Funds Act of 2026," aims to limit the use of federal funds, including those from the Judgment Fund under section 1304 of title 31, United States Code, for certain compromise settlements or awards. It specifically targets payments related to a named lawsuit and restricts access for high-level government officials and particular types of claims.

Key Provisions

• Specific Restriction: Prohibits federal funds from being used to create or pay into a compensation fund established by the May 18, 2026, settlement in Trump, et al. v. IRS, et al. (Civil Action No. 1:26-cv-20609-KMW, U.S. District Court for the Southern District of Florida).
• Eligibility Restrictions: Bars payments to the President, Vice President, their immediate family members, presidentially-owned entities, cabinet members, certain high-paid Executive Office of the President employees, political appointees, and individuals who held such roles during the appointing President's term.
• Claim-Based Prohibitions: Prevents payments for claims tied to the January 6, 2021, Capitol attack, foreign interference in the 2016 presidential election, or facts from civil actions dismissed with prejudice.
• Reporting and Oversight: Requires the Secretary of the Treasury to report details (such as plaintiff names, attorneys, and facts) for payments over $100,000 and provide advance notice for payments over $250,000 or those based on imminent litigation, with a 120-day waiting period before payment.
• Enforcement: Authorizes the Attorney General to seek injunctive relief and repayment for violations.
• Exceptions and Scope: Allows Congress to appropriate funds on a per-claim basis; applies retroactively to settlements from January 20, 2025, onward; and restricts the Treasury Secretary from establishing certain compensation funds.

Significant Changes to Existing Law

This bill amends section 1304 of title 31, United States Code, by adding new subsections (e) through (l). These additions impose new eligibility limits, claim exclusions, transparency requirements, and enforcement mechanisms not previously present in the Judgment Fund statute. It also introduces targeted restrictions on a specific settlement agreement and retroactive application to recent awards.

Potential Impacts

• On Government Agencies: Increases administrative burdens on the Department of the Treasury for reporting and delays; empowers the Attorney General with new civil action authority; and limits flexibility in settling claims involving covered individuals or topics.
• On Citizens: Restricts access to federal compensation for certain plaintiffs, including those connected to specified events or officials; may affect individuals seeking settlements related to official actions.
• On International Relations: No direct provisions address foreign entities, though restrictions on claims involving 2016 election interference could indirectly influence related litigation.

Main Stakeholders Affected

• Current and former Presidents, Vice Presidents, cabinet members, political appointees, and their families or owned entities.
• Plaintiffs and attorneys in claims involving the January 6 Capitol attack, 2016 election interference, or dismissed civil actions.
• The Department of the Treasury and Department of Justice.
• Congress, due to its retained appropriation authority.

Notable Legal, Constitutional, or Political Implications

The bill creates category-based exclusions from standard federal payment processes, potentially raising questions about equal treatment under the law for specific classes of claimants. It includes retroactive application and enforcement tools for repayment, which could lead to litigation over vested rights or separation of powers. The targeted reference to a particular court case introduces case-specific legislation alongside broader reforms.

This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.

Sponsor

Rep. Raskin, Jamie [D-MD-8]

Cosponsors (106)

Rep. Thompson, Bennie G. [D-MS-2], Del. Norton, Eleanor Holmes [D-DC-At Large], Rep. Cohen, Steve [D-TN-9], Rep. Olszewski, Johnny [D-MD-2], Rep. Balint, Becca [D-VT-At Large], Rep. Thanedar, Shri [D-MI-13], Rep. Kamlager-Dove, Sydney [D-CA-37], Rep. Nadler, Jerrold [D-NY-12], Rep. García, Jesús G. "Chuy" [D-IL-4], Rep. Mejia, Analilia [D-NJ-11], Rep. Ansari, Yassamin [D-AZ-3], Rep. Lynch, Stephen F. [D-MA-8], Rep. Walkinshaw, James R. [D-VA-11], Rep. Stanton, Greg [D-AZ-4], Rep. Sewell, Terri A. [D-AL-7], Rep. Moulton, Seth [D-MA-6], Rep. DeGette, Diana [D-CO-1], Rep. Watson Coleman, Bonnie [D-NJ-12], Rep. Horsford, Steven [D-NV-4], Rep. Frankel, Lois [D-FL-22], Rep. Smith, Adam [D-WA-9], Rep. Pingree, Chellie [D-ME-1], Rep. Correa, J. Luis [D-CA-46], Rep. Khanna, Ro [D-CA-17], Rep. Courtney, Joe [D-CT-2], Rep. Scanlon, Mary Gay [D-PA-5], Rep. Lieu, Ted [D-CA-36], Rep. Garcia, Robert [D-CA-42], Rep. Crockett, Jasmine [D-TX-30], Rep. McClellan, Jennifer L. [D-VA-4], Rep. Omar, Ilhan [D-MN-5], Rep. McGovern, James P. [D-MA-2], Rep. Hoyer, Steny H. [D-MD-5], Rep. Neguse, Joe [D-CO-2], Rep. Liccardo, Sam T. [D-CA-16], Rep. Case, Ed [D-HI-1], Rep. Larsen, Rick [D-WA-2], Rep. Tonko, Paul [D-NY-20], Rep. Titus, Dina [D-NV-1], Rep. Dean, Madeleine [D-PA-4], Rep. Pelosi, Nancy [D-CA-11], Rep. Bera, Ami [D-CA-6], Rep. Subramanyam, Suhas [D-VA-10], Rep. Torres, Ritchie [D-NY-15], Rep. Barragán, Nanette Diaz [D-CA-44], Rep. Castro, Joaquin [D-TX-20], Rep. Hoyle, Val T. [D-OR-4], Rep. Cisneros, Gilbert Ray [D-CA-31], Rep. Dexter, Maxine [D-OR-3], Rep. Huffman, Jared [D-CA-2] and 56 more

Recent Actions

• 2026-05-20: Referred to the House Committee on the Judiciary.
• 2026-05-20: Introduced in House
• 2026-05-20: Introduced in House

Bill Versions

• No Taxpayer-Funded Settlement Slush Funds Act of 2026 — issued 2026-05-20 — PDF (7 pages)