Rep. Hageman Introduces Bill to Bring Transparency to Federal Settlement Payments

Washington, D.C. - Congresswoman Harriet Hageman (R-WY) introduced the Clearer Liability Expenditure and Access to Reporting (CLEAR) Act to require greater transparency in federal agencies' use of taxpayer dollars to pay final court judgments or compromise settlements arising from litigation against the government.

The Judgment Fund is a permanent, indefinite appropriation of taxpayer dollars that covers these payments with minimal oversight from Congress, effectively constituting a blank check. While the Treasury Department provides some details online, concerns about public access and searchability of this information persist. That secrecy has allowed agencies to shield their actions in settling with certain favored groups, a tactic known as sue-and-settle," whereby an outside group sues an agency and, instead of fighting the case, it uses taxpayers' money to pay the group and its legal bills. The American people have a right to easily access the records showing exactly how their tax dollars are being spent.

"Taxpayers are on the hook when the federal government settles a lawsuit, but the information on where that money goes is difficult to track," said Rep. Hageman. "The CLEAR Act shines a light on every payment, shows who collects the money, and gives Congress the information to detect sue-and-settle schemes."

Background:

• The bill expands existing reporting requirements under the law by mandating the Treasury Department to post monthly totals of Judgment Fund payments, including how many were settlements, and lets the public search them by agency, plaintiff, and counsel.
• It disaggregates monthly spending by payments, attorney fees, court costs, and interest.
• It directs the Government Accountability Office to review compromise settlements and annually report to Congress on the use of sue-and-settle practices, including which agencies rely on it most.
• An analysis of 113,969 Treasury Judgment Fund payments found the government paid $2.4 billion in fiscal year 2023, $2.7 billion in fiscal year 2024, and $2.9 billion in fiscal year 2025.
• Agencies must repay the Fund for only two types of payments, so most agencies never pay for the liabilities they create.