The Cost of Police Misconduct Act of 2023 requires federal, state, and local law enforcement agencies to report detailed information about lawsuits and settlements related to officer misconduct to the U.S. Department of Justice. Federal agencies must begin collecting this data 120 days after enactment, while state and local agencies receiving federal funding under the Byrne JAG program must do the same. The reported information includes details about each misconduct allegation, the officers and civilians involved, the types of allegations, disciplinary actions taken, and the total amounts paid, along with the funding sources used to pay settlements or judgments. State and local governments that fail to comply with reporting requirements face penalties of up to 10 percent reductions in federal grant funding. The Attorney General must publish all collected data in a searchable public database within one year, and the Government Accountability Office must study the data after two full years of collection and submit findings to Congress, while the Justice Department will provide annual reports with recommendations for reducing police misconduct.