The SLUSH FUND Act of 2026 would impose a 100 percent tax on settlement payments received by former presidents, their family members, or entities they control from civil lawsuits filed against the federal government. The bill applies to any settlements, verdicts, or other outcomes from civil actions brought by these specified individuals against the United States or its agencies, effective May 20, 2026. Settlement fund trustees and administrators would be required to report these payments to the IRS and publicly disclose them within one month of receipt, with taxpayers receiving written notification that such payments are subject to the tax. The legislation includes a 50 percent penalty on top of the tax for anyone who willfully fails to pay or attempts to evade the tax, and a $10,000 penalty for each failure to file required settlement payment reports. The bill contains no explicit funding allocation, as the tax itself is designed to generate revenue from covered settlement payments.
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