[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 4978 Introduced in Senate (IS)]

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119th CONGRESS
  2d Session
                                S. 4978

To limit donations made pursuant to settlement agreements to which the 
           United States is a party, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             July 14, 2026

 Mr. Tuberville (for himself, Mr. Johnson, Mr. Budd, Mr. Lee, and Mr. 
 Scott of Florida) introduced the following bill; which was read twice 
             and 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.

    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 Settlement Slush Funds Act of 
2026''.

SEC. 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 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 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.
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