The SLUSH FUND Act of 2026 would impose a 100 percent tax on settlement payments received from civil lawsuits filed against the federal government by former U.S. Presidents, their family members, or entities they control. The bill defines "specified settlement fund payments" as money derived from any settlement, verdict, or other civil action outcome where a former president or their relatives are the plaintiffs. Anyone receiving such payments would owe a tax equal to the full amount received, with an additional 50 percent penalty for willfully failing to pay. The legislation also requires trustees and administrators of settlement funds to report all such payments to recipients and the IRS, with public disclosure of these reports within one month of receipt, and imposes a $10,000 penalty for failure to file required reports. The tax provisions would take effect retroactively on May 20, 2026.
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