This bill restricts settlement agreements involving the federal government by prohibiting officials from directing settlement payments to third parties unless the payments directly compensate victims for actual harm or cover legitimate legal services. The legislation applies to all civil settlements entered into after its enactment and would subject violating officials to the same penalties as those who misappropriate federal funds. The bill requires federal agencies to submit annual reports to Congress detailing settlement agreements with third-party payments, including information about how funds are distributed, and mandates that agency Inspectors General audit compliance and report violations to relevant congressional committees. These reporting and audit requirements sunset after seven years and do not authorize any additional federal funding. The stated purpose is to prevent what supporters view as improper use of settlement funds, though the bill allows payments that directly remedy documented harm or pay for legal work performed.
Take Action
Your position
Add a comment
to comment on this bill.
Annotate the text
Highlight any passage on the Summary or Full Text tab to attach a note. Annotations appear on the Annotations tab.