Sponsors (107)
The bill prioritizes protecting Treasury funds and increasing Congressional oversight of large settlements (including blocking certain payments to high‑level officials) at the cost of delaying or denying compensation to some claimants, increasing litigation and policy uncertainty, and imposing new administrative burdens.
Taxpayers and the federal budget: blocks use of Treasury funds to implement the May 18, 2026 settlement/private compensation fund, preserving federal resources for other priorities.
Taxpayers: prevents Judgment Fund payments to sitting Presidents, Vice Presidents, Cabinet members, senior EOP staff, political appointees, or related entities, reducing the risk that public funds will be used to settle claims for high‑level officials.
Congress and taxpayers: preserves Congressional control over extraordinary payouts by allowing Congress to appropriate funds on a case‑by‑case basis rather than allowing automatic Judgment Fund disbursements.
Claimants (including individuals covered by the May 18, 2026 settlement and those with claims tied to January 6 or alleged 2016 foreign interference): may be denied or have payments delayed, shifting the burden onto claimants or forcing them to wait for a specific Congressional appropriation.
Settling parties and the federal government: could face additional litigation or federal liability if a court‑approved settlement cannot be implemented because funding is withheld, increasing legal risk and potential long‑term costs.
Taxpayers, federal employees, and litigants: creates policy uncertainty by signaling that Congress can use funding restrictions to override or hinder court settlements with the government, which may discourage negotiated resolutions and increase litigation.
Based on analysis of 3 sections of legislative text.
Bars federal funds from creating or paying a specific settlement compensation fund and restricts Judgment Fund payments to presidentially‑owned entities and political appointees with new reporting, holds, and recovery tools.
Official title: To amend section 1304 of title 31, United States Code to restrict payments for compromise settlements or awards.
Introduced May 20, 2026 by Jamie Ben Raskin · Last progress May 20, 2026
Prohibits use of any federal funds to create or pay into a compensation fund established under the May 18, 2026 settlement in Trump v. IRS and bars Treasury from establishing or funding similar compensation funds in specified circumstances. It also amends the Judgment Fund statute to forbid certain payments to presidentially‑owned entities and political appointees, adds reporting and notice obligations for larger awards, creates a 120‑day hold after notice, authorizes DOJ actions to recover prohibited payments, and preserves Congress’s power to appropriate funds for individual claims. The new rules apply to settlements or awards made on or after January 20, 2025, add definitions for “presidentially‑owned entity” and “political appointee,” and create criminal/civil recovery and procedural mechanisms to enforce the prohibitions and reporting requirements.