Stop Settlement Slush Funds Act of 2021

To limit donations made pursuant to settlement agreements to which the United States is a party, and for other purposes. 1. Short title This Act may be cited as the Stop Settlement Slush Funds Act of 2021 2. Limitation on donations made pursuant to settlement agreements to which the United States is a party (a) Definition In this section, the term settlement agreement (b) Limitation on required donations An official or agent of the Federal Government may not enter into or enforce any settlement agreement on behalf of the United States, directing or providing for a payment or loan to any person or entity other than the United States, other than a payment or loan 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 loan or constitutes payment for services rendered in connection with the case, or a payment pursuant to section 3663 of title 18, United States Code. (c) Penalty Any official or agent of the Federal Government who violates subsection (b) 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. (d) Effective date Subsections (b) and (c) shall apply only to any settlement agreement concluded on or after the date of enactment of this Act. (e) Reports on settlement agreements (1) In general Beginning 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 or loan to a person or entity other than the United States 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 loan, or constitutes payment for services rendered in connection with the case, including 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.

Summary: Stop Settlement Slush Funds Act of 2021 This bill prohibits the federal government from entering into or enforcing a settlement agreement on behalf of the United States that provides for a payment or loan to any person or entity other than the United States. The bill provides exceptions to allow payments or loans that (1) remedy actual harm (including to the environment) caused by the party making the payment or loan, or (2) constitute a payment for services rendered in connection with the case or a payment that a court may order for restitution to victims in certain criminal cases or other persons in plea agreements. Government officials or agents who violate this prohibition may be removed from office or required to forfeit to the government any money they hold for such purposes to which they may otherwise be entitled. Agencies must report annually to the Congressional Budget Office about the parties, funding sources, and distribution of funds for their settlement agreements permitted by the exceptions in this bill.