H.R. 788House118th Congress (2023-2025)Passed House

Stop Settlement Slush Funds Act of 2023

Introduced February 2, 2023

AI-Generated Summary

Updated January 20, 2026 at 3:02 AM UTC

The Stop Settlement Slush Funds Act of 2023 bars federal officials from entering settlement agreements that direct payments to anyone other than the United States, except when the payment is restitution for direct harm caused by the paying party or payment for services related to the case. It adds civil penalties for violations, requires yearly agency reports on such settlements, and mandates public audit reports on any prohibited settlements. The law applies to settlement agreements entered into after its enactment and affects all federal agencies handling civil settlements.

Key Provisions

  • Prohibits settlement agreements that provide payments to non‑government parties unless the payment is restitution for actual harm caused by the paying party or payment for services rendered in the case.
  • Violations are subject to the same penalties as those under 31 U.S.C. §3302, which govern illegal use of government funds.
  • Each federal agency must annually submit a detailed electronic report to the Congressional Budget Office on qualifying settlement agreements, including parties, fund sources, and distribution; no additional funding is authorized and the reporting requirement sunsets after seven years.
  • Agency Inspectors General must annually publish a public report of any settlement agreements that violate the prohibition, sending copies to the Senate and House Judiciary, Budget, and Appropriations committees; no extra funding is authorized for this audit requirement.

Legislative Activity

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19 earlier actions
SenateIntro Referral Latest Action

Received in the Senate and Read twice and referred to the Committee on the Judiciary.

January 16, 2024

View full timeline
HouseIntro Referral

Introduced in House

February 2, 2023

HouseIntro Referral

Referred to the House Committee on the Judiciary.

February 2, 2023

HouseCommittee

Ordered to be Reported in the Nature of a Substitute (Amended) by the Yeas and Nays: 15 - 10.

June 14, 2023

HouseCommittee

Committee Consideration and Mark-up Session Held

June 14, 2023

HouseCommittee

Reported (Amended) by the Committee on Judiciary. H. Rept. 118-339.

January 9, 2024

HouseCalendars

Placed on the Union Calendar, Calendar No. 278.

January 9, 2024

HouseFloor

Rules Committee Resolution H. Res. 947 Reported to House. Rule provides for consideration of H.R. 788, H.J. Res. 98 and S.J. Res. 38. The resolution provides for consideration of H.R. 788 under a structured rule, with one hour of general debate. The resolution provides for consideration of H.J. Res. 98 and S.J. Res. 38 under a closed rule, with one hour of general debate on each joint resolution. Also, the resolution provides for a motion to recommit on H.R. 788 and H.J. Res. 98. A motion to commit on S.J. Res. 38.

January 9, 2024 • 6:56 PM

HouseFloor

Considered under the provisions of rule H. Res. 947. (consideration: CR H71-77; text of amendment in the nature of a substitute: CR H71)

January 11, 2024 • 2:16 PM

HouseFloor

Rule provides for consideration of H.R. 788, H.J. Res. 98 and S.J. Res. 38. The resolution provides for consideration of H.R. 788 under a structured rule, with one hour of general debate. The resolution provides for consideration of H.J. Res. 98 and S.J. Res. 38 under a closed rule, with one hour of general debate on each joint resolution. Also, the resolution provides for a motion to recommit on H.R. 788 and H.J. Res. 98. A motion to commit on S.J. Res. 38.

January 11, 2024 • 2:16 PM

HouseFloor

DEBATE - The House proceeded with one hour of debate on H.R. 788.

January 11, 2024 • 2:18 PM

HouseFloor

DEBATE - Pursuant to the provisions of H. Res. 947, the House proceeded with 10 minutes of debate on the McCormick amendment No. 1.

January 11, 2024 • 2:55 PM

HouseFloor

Mrs. Foushee moved to recommit to the Committee on the Judiciary. (text: CR H77)

January 11, 2024 • 2:58 PM

HouseFloor

The previous question on the motion to recommit was ordered pursuant to clause 2(b) of rule XIX.

January 11, 2024 • 2:58 PM

HouseFloor

POSTPONED PROCEEDINGS - At the conclusion of debate on H.R. 788, the Chair put the question on the motion to recommit and announced that the noes had prevailed. Mrs. Foushee demanded the yeas and nays and the Chair postponed further proceedings until a time to be announced.

January 11, 2024 • 2:59 PM

HouseFloor

Considered as unfinished business. (consideration: CR H83-84)

January 11, 2024 • 3:48 PM

HouseFloor

On motion to recommit Failed by the Yeas and Nays: 189 - 205 (Roll no. 6).

January 11, 2024 • 4:23 PM

HouseFloor

Passed/agreed to in House: On passage Passed by the Yeas and Nays: 211 - 197 (Roll no. 7).

January 11, 2024 • 4:31 PM

HouseFloor

On passage Passed by the Yeas and Nays: 211 - 197 (Roll no. 7).

January 11, 2024 • 4:31 PM

HouseFloor

Motion to reconsider laid on the table Agreed to without objection.

January 11, 2024 • 4:31 PM

SenateIntro Referral

Received in the Senate and Read twice and referred to the Committee on the Judiciary.

January 16, 2024

Floor Debate

23 members

What members said about H.R. 788 on the floor

12 Republicans11 Democrats
Sheila Jackson Lee
Rep. Sheila Jackson LeeD-TX-18 · Jan 11, 2024

Mr. Speaker, I thank the ranking member of the full committee and the manager of this presentation on the floor for dealing with H.R. 788. Mr. Speaker, I rise to save lives. This baffles me when good…

Lance Gooden
Rep. Lance GoodenR-TX-5 · Jan 11, 2024

Mr. Speaker, pursuant to House Resolution 947, I call up the bill (H.R. 788) to limit donations made pursuant to settlement agreements to which the United States is a party, and for other purposes,…

James P. McGovern
Rep. James P. McGovernD-MA-2 · Jan 10, 2024

Mr. Speaker, I thank the gentlewoman from Indiana (Mrs. Houchin) for yielding me the customary 30 minutes, and I yield myself such time as I may consume. Mr. Speaker, you would think that for the…

Erin Houchin
Rep. Erin HouchinR-IN-9 · Jan 10, 2024

Mr. Speaker, by direction of the Committee on Rules, I call up House Resolution 947 and ask for its immediate consideration. Mr. Speaker, for the purpose of debate only, I yield the customary 30…

Jerrold Nadler
Rep. Jerrold NadlerD-NY-12 · Jan 11, 2024

Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in opposition to H.R. 788, the so-called Stop Settlement Slush Funds Act of 2023. This harmful legislation would prevent…

Show 8 more
Teresa Leger Fernandez
Rep. Teresa Leger FernandezD-NM-3 · Jan 10, 2024

Mr. Speaker, Republicans are just at it again, aren't they? They keep bringing up bills that protect big corporations and banks instead of helping Americans and protecting working families. We saw it…

Ryan K. Zinke
Rep. Ryan K. ZinkeR-MT-1 · Jan 11, 2024

Mr. Speaker, I rise in strong support of H.R. 788. First of all, we should ask what good governance looks like. I know that in the House of Representatives today, perhaps we are not reflective of…

Nathaniel Moran
Rep. Nathaniel MoranR-TX-1 · Jan 11, 2024

Mr. Speaker, I rise today in support of H.R. 788, the Stop Settlement Slush Funds Act of 2023. This act is one step in the reform process to return spending power back to the hands of Congress and…

Susan Wild
Rep. Susan WildD-PA-7 · Jan 10, 2024

Mr. Speaker, I rise today in opposition to the previous question. Instead of focusing on policies that would make life better and easier for Americans, my colleagues on the other side of the aisle…

Harriet M. Hageman
Rep. Harriet M. HagemanR-WY · Jan 11, 2024

Mr. Speaker, it should come as no surprise that this administration, known for its reckless spending and misuse of congressionally appropriated money, has resumed the Obama-era practice of…

Ralph Norman
Rep. Ralph NormanR-SC-5 · Jan 11, 2024

Mr. Speaker, I rise in strong support of H.R. 788, the Stop Settlement Slush Funds Act of 2023. To be honest with you, I am amazed we are even debating this. The other side always takes the position…

Betty McCollum
Rep. Betty McCollumD-MN-4 · Jan 12, 2024

Mr. Speaker, I rise in opposition to H.R. 788. H.R. 788 would prevent the Department of Justice from negotiating settlements in court cases to include payments to third parties, such as nonprofits,…

Richard McCormick
Rep. Richard McCormickR-GA-6 · Jan 11, 2024

Mr. Speaker, I have an amendment at the desk. Mr. Speaker, I rise to offer an amendment to H.R. 788. I thank Representative Gooden and the Judiciary Committee for crafting this crucial piece of…

Show 11 more
Valerie P. Foushee
Rep. Valerie P. FousheeD-NC-4 · Jan 11, 2024

Mr. Speaker, I rise to oppose this bill that undermines our ability to hold corporate wrongdoers accountable for unlawful conduct. This bill will prevent Federal agencies from entering into…

David J. Trone
Rep. David J. TroneD-MD-6 · Jan 31, 2024

Mr. Speaker, on January 11-12, 2024, I was unable to cast my vote. Had I been present, I would have voted ``NAY'' on Roll Call No. 7, ``YEA'' on Roll Call No. 9 and ``NAY'' on Roll Call No. 10. I…

Lisa Blunt Rochester
Rep. Lisa Blunt RochesterD-DE · Jan 16, 2024

Mr. Speaker, I missed these votes due to a personal matter. Had I been present, I would have voted PRES on Roll Call No. 1-Quorum; NAY on Roll Call No. 2-H. Res. 947; NAY on Roll Call No. 3-H. Res.…

Zachary Nunn
Rep. Zachary NunnR-IA-3 · Jan 11, 2024

Mr. Speaker, in order to attend a funeral of a student who was a victim in the Perry school shooting in my District, I was unable to be present for the floor votes today. Had I been present, I would…

Zachary Nunn
Rep. Zachary NunnR-IA-3 · Jan 10, 2024

Mr. Speaker, in order to attend the funeral of a student who was a victim in the Perry school shooting in my District and due to inclement weather, I was unable to be present for floor votes today.…

Ashley Hinson
Rep. Ashley HinsonR-IA-2 · Jan 11, 2024

Mr. Speaker, I was unavoidably detained. Had I been present, I would have voted ``aye'' on rollcall No. 4. Motion to Reconsider H. Res. 947, ``aye'' on rollcall No. 5, H. Res. 947, ``yea'' on…

Jennifer Wexton
Rep. Jennifer WextonD-VA-10 · Jan 11, 2024

Mr. Speaker, I regret that I was not able to be present to vote today. Had I been present, I would have voted ``nay'' on rollcall no. 4, ``nay'' on rollcall no. 5, ``yea'' on rollcall no. 6, ``nay''…

Nicholas A. Langworthy
Rep. Nicholas A. LangworthyR-NY-23 · Jan 11, 2024

Mr. Speaker, due to a sick family member, I was unable to be present for votes in the 2nd vote series today. Had I been present, I would have voted ``nay'' on rollcall No. 6, ``yea'' on rollcall No.…

Joe Wilson
Rep. Joe WilsonR-SC-2 · Jan 12, 2024

Mr. Speaker, I was detained chairing a hearing in the Foreign Affairs Subcommittee on the Middle East, North Africa, and Central Asia. Had I been present, I would have voted ``NAY'' on Roll Call No.…

Blake D. Moore
Rep. Blake D. MooreR-UT-1 · Jan 10, 2024

Mr. Speaker, I have a motion at the desk. Mr. Speaker, I object to the vote on the ground that a quorum is not present and make the point of order that a quorum is not present.

Lauren Underwood
Rep. Lauren UnderwoodD-IL-14 · Jan 11, 2024

Mr. Speaker, I was unable to attend votes today. However, if I was present, I would have voted ``nay'' on the passage of S.J. Res. 38, rollcall No. 8. personal explanation

Bill Text

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Referred in SenateIssued January 16, 2024

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.

Short title

This Act may be cited as the Stop Settlement Slush Funds Act of 2023.

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.

Passed the House of Representatives January 11, 2024.

Kevin F. McCumber,

Clerk.