H.R. 7387

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 7387 Introduced in House (IH)]

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119th CONGRESS
2d Session
H. R. 7387

To limit donations made pursuant to settlement agreements to which the 
United States is a party, and for other purposes.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

February 5, 2026

Mr. Gooden (for himself, Ms. Tenney, Mr. Rouzer, Mr. Moore of Alabama, 
Mr. Tiffany, Mr. Roy, Mr. Ogles, Mr. Palmer, Mr. Fry, and Mr. McDowell) 
introduced the following bill; which was referred to the Committee on 
the Judiciary

_______________________________________________________________________

A BILL

To limit donations made pursuant to settlement agreements to which the 
United States is a party, and for other purposes.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Stop Settlement Slush Funds Act of 
2026''.

SEC. 2. LIMITATION ON DONATIONS MADE PURSUANT TO SETTLEMENT AGREEMENTS 
TO WHICH THE UNITED STATES IS A PARTY.

(a) Limitation on Required Donations.--An official or agent of the 
Government may not enter into or enforce any settlement agreement on 
behalf of the United States directing or providing for a payment to any 
person or entity other than the United States, other than a payment 
that provides restitution for or otherwise directly remedies actual 
harm (including to the environment) directly and proximately caused by 
the party making the payment, or constitutes payment for services 
rendered in connection with the case.
(b) Penalty.--Any official or agent of the Government who violates 
subsection (a) shall be subject to the same penalties that would apply 
in the case of a violation of section 3302 of title 31, United States 
Code.
(c) Effective Date.--Subsections (a) and (b) apply only in the case 
of a settlement agreement entered on or after the date of enactment of 
this Act.
(d) Definition.--The term ``settlement agreement'' means a 
settlement agreement resolving a civil action or potential civil 
action.
(e) Reports on Settlement Agreements.--
(1) In general.--Not later than at the end of the first 
fiscal year that begins after the date of enactment of this 
Act, and annually thereafter, the head of each Federal agency 
shall submit electronically to the Congressional Budget Office 
a report on each settlement agreement entered into by that 
agency during that fiscal year that directs or provides for a 
payment to a person or entity other than the United States that 
is providing restitution for or otherwise directly remedies 
actual harm (including to the environment) directly and 
proximately caused by the party making the payment, or that 
constitutes payment for services rendered in connection with 
the case, which shall include the parties to each settlement 
agreement, the source of the settlement funds, and where and 
how such funds were and will be distributed.
(2) Prohibition on additional funding.--No additional funds 
are authorized to be appropriated to carry out this subsection.
(3) Sunset.--This subsection shall cease to be effective on 
the date that is 7 years after the date of enactment of this 
Act.
(f) Annual Audit Requirement.--
(1) In general.--Not later than at the end of the first 
fiscal year that begins after the date of enactment of this 
Act, and annually thereafter, the Inspector General of each 
Federal agency shall submit, and make available on a publicly 
accessible website, a report on any settlement agreement 
entered into in violation of this section by that agency to--
(A) the Committee on the Judiciary, the Committee 
on the Budget, and the Committee on Appropriations of 
the Senate; and
(B) the Committee on the Judiciary, the Committee 
on the Budget, and the Committee on Appropriations of 
the House of Representatives.
(2) Prohibition on additional funding.--No additional funds 
are authorized to be appropriated to carry out this subsection.
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