IIB 

118TH CONGRESS 

2D SESSION H. R. 788 

IN THE SENATE OF THE UNITED STATES 

JANUARY 16, 2024 

Received; read twice and referred to the Committee on the Judiciary 

AN ACT 

To limit donations made pursuant to settlement agreements 

to which the United States is a party, and for other 

purposes. 

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled, 


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1 SECTION 1. SHORT TITLE. 

2 This Act may be cited as the ‘‘Stop Settlement Slush 

3 Funds Act of 2023’’. 

4 SEC. 2. LIMITATION ON DONATIONS MADE PURSUANT TO 

5 SETTLEMENT AGREEMENTS TO WHICH THE 

6 UNITED STATES IS A PARTY. 

7 (a) LIMITATION ON REQUIRED DONATIONS.—An of8 ficial or agent of the Government may not enter into or 

9 enforce any settlement agreement on behalf of the United 

10 States directing or providing for a payment to any person 

11 or entity other than the United States, other than a pay12 ment that provides restitution for or otherwise directly 

13 remedies actual harm (including to the environment) di14 rectly and proximately caused by the party making the 

15 payment, or constitutes payment for services rendered in 

16 connection with the case. 

17 (b) PENALTY.—Any official or agent of the Govern18 ment who violates subsection (a) shall be subject to the 

19 same penalties that would apply in the case of a violation 

20 of section 3302 of title 31, United States Code. 

21 (c) EFFECTIVE DATE.—Subsections (a) and (b) 

22 apply only in the case of a settlement agreement entered 

23 on or after the date of enactment of this Act. 

24 (d) DEFINITION.—The term ‘‘settlement agreement’’ 

25 means a settlement agreement resolving a civil action or 

26 potential civil action. 


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1 (e) REPORTS ON SETTLEMENT AGREEMENTS.— 

2 (1) IN GENERAL.—Not later than at the end of 

3 the first fiscal year that begins after the date of en4 actment of this Act, and annually thereafter, the 

5 head of each Federal agency shall submit electroni6 cally to the Congressional Budget Office a report on 

7 each settlement agreement entered into by that 

8 agency during that fiscal year that directs or pro9 vides for a payment to a person or entity other than 

10 the United States that is providing restitution for or 

11 otherwise directly remedies actual harm (including 

12 to the environment) directly and proximately caused 

13 by the party making the payment, or that con14 stitutes payment for services rendered in connection 

15 with the case, which shall include the parties to each 

16 settlement agreement, the source of the settlement 

17 funds, and where and how such funds were and will 

18 be distributed. 

19 (2) PROHIBITION ON ADDITIONAL FUNDING.— 

20 No additional funds are authorized to be appro21 priated to carry out this subsection. 

22 (3) SUNSET.—This subsection shall cease to be 

23 effective on the date that is 7 years after the date 

24 of enactment of this Act. 

25 (f) ANNUAL AUDIT REQUIREMENT.— 


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HR 788 RFS

1 (1) IN GENERAL.—Not later than at the end of 

2 the first fiscal year that begins after the date of en3 actment of this Act, and annually thereafter, the In4 spector General of each Federal agency shall submit, 

5 and make available on a publicly accessible website, 

6 a report on any settlement agreement entered into 

7 in violation of this section by that agency to— 

8 (A) the Committee on the Judiciary, the 

9 Committee on the Budget, and the Committee 

10 on Appropriations of the Senate; and 

11 (B) the Committee on the Judiciary, the 

12 Committee on the Budget, and the Committee 

13 on Appropriations of the House of Representa14 tives. 

15 (2) PROHIBITION ON ADDITIONAL FUNDING.— 

16 No additional funds are authorized to be appro17 priated to carry out this subsection. 

Passed the House of Representatives January 11, 

2024. 

Attest: KEVIN F. MCCUMBER, 

Clerk. 


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