Corruption Clawback Act

Bill Number

S. 4094

Origin Chamber

Senate

Congress

119th Congress, Session 2

Status

Introduced

Latest Action

2026-03-12: Read twice and referred to the Committee on the Judiciary.

Last Updated

2026-03-25T03:53:21Z

AI-Generated Summary

Purpose

The Corruption Clawback Act aims to prevent and recover improper financial payments made to individuals serving as President, specifically targeting settlements, awards, or judgments that appear linked to their presidential role. It seeks to enhance accountability by requiring the government to reclaim such funds and report on them.

Key Provisions

• Definition of Covered Payment: This includes any part of a monetary settlement, administrative award (e.g., under federal claims laws allowing compensation for government wrongdoing), or court judgment that:
• Is funded from the U.S. Treasury or related federal funds.
• Was paid to someone while they served as President.
• Would not have occurred without the authority or status of the presidency.
• Relates to claims filed or settled on or after January 20, 2025 (the start of a potential new presidential term).

• Recovery Process: The Attorney General must file a civil lawsuit in either the U.S. Court of Federal Claims (which handles money claims against the government) or the U.S. Court of Appeals for the District of Columbia Circuit to recover any covered payment. Courts evaluating these cases should consider:
• Whether government officials who approved the payment were appointed by the President or previously acted as their personal lawyer.
• If the payment amount is unusually high compared to similar cases involving non-presidential individuals.
• If the payment skipped typical legal protections, like time limits for filing claims (statutes of limitations) or government immunity from lawsuits (sovereign immunity).

• Use of Recovered Funds: Any money recovered must be directed to the Public Integrity Section of the Department of Justice's Criminal Division, which investigates public corruption.

• Reporting Requirement: For any covered payment over $1,000,000, the Comptroller General (head of the Government Accountability Office, an independent agency auditing federal spending) must submit a report to Congress within 180 days. The report analyzes the same factors courts consider for recovery.

Significant Changes to Existing Law

This bill introduces a new mandatory recovery mechanism for presidential payments, which does not exist in current federal law. Previously, settlements or judgments involving the President were handled through standard civil processes without a specific "clawback" (reclamation) requirement tied to the presidency. It also mandates independent reporting on large payments, adding oversight not previously required for such cases.

Potential Impacts

• On Government Agencies: The Department of Justice (via the Attorney General) will face increased litigation duties, potentially straining resources. The Government Accountability Office will need to conduct and report on investigations of high-value payments, promoting transparency in federal spending.
• On Citizens: Taxpayers may benefit from recovered funds reducing public expenditure, but it could indirectly affect trust in government if disputes lead to prolonged legal battles.
• On International Relations: Minimal direct impact, though it could influence perceptions of U.S. leadership integrity if applied to foreign-related claims involving the President.

Main Stakeholders Affected

• Presidents and Former Presidents: Directly targeted, as their personal finances could be subject to recovery actions for payments received during service.
• Department of Justice and Attorney General: Responsible for initiating lawsuits and managing recovered funds through its anti-corruption unit.
• Congress: Receives reports to inform oversight and potential further legislation.
• Taxpayers and the Public: Indirectly affected through fiscal accountability and protection of Treasury funds.
• Federal Courts: Will handle recovery cases, potentially setting precedents on presidential-related claims.

Notable Legal, Constitutional, or Political Implications

• Legal Implications: The bill could expand civil recovery tools against high officials, but it relies on courts interpreting the "but for" (causal link) to the presidency, which may lead to disputes over evidence and intent. It bypasses some standard defenses, potentially altering how government settlements are negotiated.
• Constitutional Implications: Raises questions about separation of powers, as it empowers the judicial and legislative branches to scrutinize executive actions and payments. It might intersect with presidential immunity doctrines (protections from certain lawsuits while in office), though the bill focuses on post-payment recovery.
• Political Implications: By targeting payments after a specific date (January 20, 2025), it could be seen as aimed at a particular administration, fueling debates on partisanship despite its broader anti-corruption framing. Enactment might deter questionable settlements but invite challenges on grounds of selective enforcement.

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

Sponsor

Sen. Schiff, Adam B. [D-CA]

Cosponsors (3)

Sen. Hirono, Mazie K. [D-HI], Sen. Durbin, Richard J. [D-IL], Sen. Duckworth, Tammy [D-IL]

Recent Actions

• 2026-03-12: Read twice and referred to the Committee on the Judiciary.
• 2026-03-12: Introduced in Senate

Bill Versions

• Corruption Clawback Act — issued 2026-03-12 — PDF (3 pages)