Sponsors (10)
The bill increases transparency and accountability by forcing settlements toward restitution-to-the-U.S. and imposing reporting and penalties, but it reduces settlement flexibility—potentially raising litigation costs, delaying victim recoveries, and adding administrative burdens.
Taxpayers will see fewer settlement payouts to private parties because federal settlements are limited to restitution or payments to the United States.
Congress and the public gain more transparency into settlement funds and recipients through annual CBO and Inspector General reports.
Federal employees who improperly approve non‑statutory settlement terms face penalties, increasing accountability for settlement decisions.
Taxpayers and state governments may face higher litigation costs and longer legal disputes because the government loses flexibility to craft settlements beyond restitution or direct payments.
Victims of complex environmental or mass‑tort cases could experience delayed recovery because restricting structured payments or third‑party distributions can make settlements harder to negotiate.
Federal agencies and Inspectors General face additional reporting requirements that may divert staff time and resources from core missions absent new funding.
Based on analysis of 2 sections of legislative text.
Stops federal settlement payments to third parties except for restitution or payment for services, adds seven years of annual CBO and IG reporting, and imposes penalties for violations.
Prohibits federal officials and agents from entering into or enforcing settlement agreements that require or provide payments to any person or entity other than the United States, except when the payment is restitution or otherwise directly remedies actual harm or is payment for services in the case. Establishes civil penalties tied to existing law for violations and applies only to settlements entered on or after enactment. Requires annual agency reports to the Congressional Budget Office and annual Inspector General reports to specific congressional committees on qualifying settlements and any violations, for seven years beginning the first fiscal year after enactment, with no additional funds authorized for those reports.
Official title: To limit donations made pursuant to settlement agreements to which the United States is a party, and for other purposes.
Introduced February 5, 2026 by Lance Gooden · Last progress February 5, 2026