[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8910 Introduced in House (IH)]
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119th CONGRESS
2d Session
H. R. 8910
To amend the Internal Revenue Code of 1986 to impose a tax on specified
settlement fund payments, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
May 19, 2026
Mr. Thompson of California (for himself, Mr. Doggett, Mr. Larson of
Connecticut, Mr. Davis of Illinois, Ms. Sanchez, Ms. Sewell, Ms.
DelBene, Ms. Chu, Ms. Moore of Wisconsin, Mr. Boyle of Pennsylvania,
Mr. Beyer, Mr. Evans of Pennsylvania, Mr. Schneider, Mr. Panetta, Mr.
Gomez, Mr. Horsford, and Mr. Suozzi) introduced the following bill;
which was referred to the Committee on Ways and Means
_______________________________________________________________________
A BILL
To amend the Internal Revenue Code of 1986 to impose a tax on specified
settlement fund payments, 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 Letting United States Heads
Funnel Unauthorized Nontransparent Dollars Act of 2026'' or the ``SLUSH
FUND Act of 2026''.
SEC. 2. IMPOSITION OF TAX ON SPECIFIED SETTLEMENT FUND PAYMENTS.
(a) In General.--Subtitle D of the Internal Revenue Code of 1986 is
amended by adding at the end the following new chapter:
``CHAPTER 50B--SPECIFIED SETTLEMENT FUND PAYMENTS
``Sec. 5000E. Imposition of tax on specified settlement fund payments.
``SEC. 5000E. IMPOSITION OF TAX ON SPECIFIED SETTLEMENT FUND PAYMENTS.
``(a) In General.--There is hereby imposed on any taxpayer for any
taxable year a tax equal to 100 percent of any specified settlement
fund payment received by such taxpayer during such taxable year.
``(b) Specified Settlement Fund Payment.--For purposes of this
section--
``(1) In general.--The term `specified settlement fund
payment' means, with respect to any taxpayer for any taxable
year, any amount received by such taxpayer during such taxable
year from any fund, trust, or account the assets of which are
derived from the outcome (whether by settlement, verdict, or
otherwise) of any civil action which was filed by a specified
person against the United States (or any agency or
instrumentality thereof).
``(2) Specified person.--
``(A) In general.--The term `specified person'
means--
``(i) any individual who has served as
President of the United States,
``(ii) any member of the family of such
individual, and
``(iii) any person controlled (based on
principles similar to the principles which
apply for purposes of section 52(b)) by one or
more individuals described in clause (i) or
(ii).
``(B) Member of the family.--The term `member of
the family' means, with respect to any individual
described in subparagraph (A)(i)--
``(i) the spouse of such individual, and
``(ii) any individual who bears a
relationship to such individual which is
described in subparagraphs (A) through (G) of
section 152(d)(2).
``(c) Special Rules.--
``(1) Administrative provisions.--For purposes of subtitle
F, any tax imposed by this section shall be treated as a tax
imposed by subtitle A.
``(2) Exclusion from gross income.--For purposes of chapter
1, the gross income of any taxpayer for any taxable year shall
not include any specified settlement fund payment received by
such taxpayer during such taxable year.''.
(b) No Deduction From Income Tax.--Section 275(a)(6) of such Code
is amended by inserting ``50B,'' after ``50A,''.
(c) Failure To Pay Tax on Specified Settlement Fund Payments.--Part
I of subchapter A of chapter 68 of such Code is amended by adding at
the end the following new section:
``SEC. 6660. FAILURE TO PAY TAX ON SPECIFIED SETTLEMENT FUND PAYMENTS.
``Any taxpayer who, with respect to any taxable year--
``(1) willfully fails to pay the tax imposed by section
5000E(a), or
``(2) willfully attempts in any manner to evade or defeat
such tax or the payment thereof,
shall, in addition to other penalties provided by law, be liable for a
penalty of 50 percent of such tax for such taxable year.''.
(d) Clerical Amendments.--
(1) The table of chapters for subtitle D of such Code is
amended by adding at the end the following new item:
``Chapter 50B--Specified Settlement Fund Payments''.
(2) The table of sections for part I of subchapter A of
chapter 68 of such Code is amended by adding at the end the
following new item:
``Sec. 6660.Failure to pay tax on specified settlement fund
payments.''.
(e) Effective Dates.--
(1) In general.--Except as provided by paragraph (2), the
amendments made by this section shall apply with respect to
amounts received on or after May 20, 2026.
(2) Failure to pay tax on specified settlement fund
payments.--The amendment made by subsection (c) shall apply
with respect to taxable years ending on or after May 20, 2026.
SEC. 3. RETURNS RELATING TO SPECIFIED SETTLEMENT FUND PAYMENTS.
(a) In General.--Subpart B of part III of subchapter A of chapter
61 of the Internal Revenue Code of 1986 is amended by adding at the end
the following new section:
``SEC. 6050BB. RETURNS RELATING TO SPECIFIED SETTLEMENT FUND PAYMENTS.
``(a) Requirement of Reporting.--Every trustee, administrator, or
other fiduciary who makes any specified settlement fund payment (as
defined in section 5000E(b)) to any taxpayer during any taxable year
shall make a return, according to the forms and regulations prescribed
by the Secretary, setting forth--
``(1) the aggregate amount of such payments received by
such taxpayer during such taxable year, and
``(2) the name and address of such taxpayer.
``(b) Statements To Be Furnished With Respect to Whom Information
Is Required.--Every person required to make a return under subsection
(a) shall furnish to each taxpayer whose name is required to be set
forth in such return a written statement--
``(1) showing the identity of the trustee, administrator,
or other fiduciary making the specified settlement fund
payment,
``(2) showing the aggregate amount of such payments
received by such taxpayer required to be shown on the return,
and
``(3) notifying that such payments are subject to the tax
imposed by section 5000E(a).
The written statement required under the preceding sentence shall be
furnished to the taxpayer on or before January 31 of the year following
the taxable year for which the return under subsection (a) was required
to be made.
``(c) Public Disclosure of Returns.--The Secretary shall, not later
than 1 month following receipt of a return under subsection (a), make
such return publicly available (in such form and manner as the
Secretary determines appropriate).''.
(b) Failure To File Return With Respect to Specified Settlement
Fund Payments.--Section 6652 of such Code is amended by adding at the
end the following new subsection:
``(q) Failure To File Return With Respect to Specified Settlement
Fund Payments.--In the case of any failure to make a return required
under section 6050BB which contains the information required by such
section on the date prescribed therefor, unless it is shown that such
failure is due to reasonable cause, there shall be paid (on notice and
demand by the Secretary and in the same manner as tax) by the person
failing to file such return, an amount equal to $10,000 for each such
failure.''.
(c) Clerical Amendment.--The table of sections for subpart B of
part III of subchapter A of chapter 61 of such Code is amended by
adding at the end the following new item:
``Sec. 6050BB.Returns relating to specified settlement fund
payments.''.
(d) Effective Dates.--
(1) In general.--Except as provided by paragraph (2), the
amendments made by this section shall apply with respect to
amounts paid on or after May 20, 2026.
(2) Failure to file return with respect to specified
settlement fund payments.--The amendment made by subsection (b)
shall apply with respect to taxable years ending on or after
May 20, 2026.
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