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H.R. 522House115th Congress (2017-2019)In Committee

Stop Settlement Slush Funds Act of 2017

Sponsored by Bob GoodlatteRep. Bob Goodlatte (R-VA)
Introduced January 13, 2017

AI-Generated Summary

Updated April 15, 2026 at 11:55 AM UTC

The Stop Settlement Slush Funds Act of 2017 aims to stop the practice of using settlement payments to make donations or other payments to private parties when the United States is a party to a civil case. It bars settlement agreements that direct money to anyone other than the government, except when the payment is restitution for actual harm or payment for services. The bill adds criminal penalties for officials who violate the rule and requires yearly agency reports and inspector‑general audits of such settlements.

Key Provisions

  • Federal officials may not settle a case for the United States by paying money to anyone other than the government, unless the payment is restitution for actual harm caused by the paying party or payment for services related to the case.
  • Officials who violate this rule face the same penalties as violations of 31 U.S.C. § 3302 (criminal penalties for misuse of public funds).
  • Each federal agency must annually report to the Congressional Budget Office details of any settlement that includes a payment to a non‑government party, describing the parties, source of funds, and how the money will be used; no extra funding is provided for this reporting, and the reporting requirement ends after seven years.
  • Each agency’s Inspector General must also annually report to the House and Senate Judiciary, Budget, and Appropriations committees any settlements that broke the rule; again, no additional funds are authorized for this audit.

Legislative Activity

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2 earlier actions
HouseCommittee Latest Action

Referred to the Subcommittee on Regulatory Reform, Commercial And Antitrust Law.

Administrative State, Regulatory Reform, and Antitrust Subcommittee

February 8, 2017

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HouseIntro Referral

Introduced in House

January 13, 2017

HouseIntro Referral

Referred to the House Committee on the Judiciary.

Judiciary Committee

January 13, 2017

HouseCommittee

Referred to the Subcommittee on Regulatory Reform, Commercial And Antitrust Law.

Administrative State, Regulatory Reform, and Antitrust Subcommittee

February 8, 2017

Bill Text

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Introduced in HouseIssued January 13, 2017

I

115th CONGRESS

1st Session

H. R. 522

IN THE HOUSE OF REPRESENTATIVES

January 13, 2017

Mr. Goodlatte (for himself, Mr. Peterson, Mr. Sensenbrenner, Mr. Smith of Texas, Mr. Chabot, Mr. Issa, Mr. King of Iowa, Mr. Franks of Arizona, Mr. Gohmert, Mr. Jordan, Mr. Poe of Texas, Mr. Chaffetz, Mr. Marino, Mr. Gowdy, Mr. Labrador, Mr. Farenthold, Mr. Collins of Georgia, Mr. DeSantis, Mrs. Mimi Walters of California, Mr. Buck, Mr. Ratcliffe, Mr. Trott, Mr. Bishop of Michigan, Mrs. Roby, Mr. Gaetz, Mr. Biggs, and Mr. Johnson of Louisiana) 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.

1.

Short title

This Act may be cited as the Stop Settlement Slush Funds Act of 2017.

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 concluded 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

Beginning at the end of the first fiscal year that begins after the date of the 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 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, 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.

(3)

Sunset

This subsection shall cease to be effective on the date that is 7 years after the date of the enactment of this Act.

(f)

Annual audit requirement

(1)

In general

Beginning at the end of the first fiscal year that begins after the date of the enactment of this Act, and annually thereafter, the Inspector General of each Federal agency shall submit a report to the Committees on the Judiciary, on the Budget and on Appropriations of the House of Representatives and the Senate, on any settlement agreement entered into in violation of this section by that agency.

(2)

Prohibition on additional funding

No additional funds are authorized to be appropriated to carry out this subsection.