During the Obama administration, a concerning trend emerged within the Justice Department. Settlement funds from federal lawsuits were being diverted not to victims or the U.S. Treasury, but to third-party organizations, often ideologically aligned with the administration. This practice effectively transformed legal settlements into a covert funding mechanism, circumventing Congressional oversight and the will of the American people.

This trend was halted in 2017 by then-Attorney General Jeff Sessions, a decision I and many others applauded as a step toward ensuring settlement funds are used to address the harm caused by wrongdoing. However, under the Biden administration, there has been a troubling reversal with these third-party payouts reinstated. This decision raises ethical questions and signifies an apparent disregard for legislative authority and fiscal responsibility.

My bill, H.R.788, the Stop Settlement Slush Funds Act, aims to permanently end this misuse of settlement funds.

[Good. It’s time Congress acted to put an end to the end-run around its exclusive authority to appropriate funds. That would be true even without the obvious partisan abuse of these lawsuits, but that makes it all the more necessary to end this process permanently in statute. — Ed]