Lance Gooden
02/05/2026 | Press release | Distributed by Public on 02/05/2026 10:54
Gooden Introduces Bill to End Abuse of Federal Settlement Funds
WASHINGTON - Today, Congressman Lance Gooden (TX-05) introduced the Stop Settlement Slush Funds Act, legislation to codify Department of Justice policy preventing settlement money from federal lawsuits being quietly diverted to third parties and left-wing activist groups.
For years, federal officials have abused settlement agreements to direct money intended for the U.S. Treasury or victims to outside, left-wing activist groups. The Stop Settlement Slush Funds Act bars any government official from entering into or enforcing a settlement that requires payments to third parties unless those payments directly remedy the harm caused or compensate for services rendered in the case.
"We cannot allow judicial settlements to become a funding stream for left-wing activist groups waging war against the America First agenda," said Congressman Gooden. "The Stop Settlement Slush Funds Act closes this loophole once and for all, restoring transparency, accountability, and integrity to the federal settlement process."
Specifically, the bill:
"Federal settlement dollars should be used to compensate victims or returned to the U.S. Treasury, not directed to third-party organizations without congressional approval," said Congresswoman Tenney. "The Stop Settlement Slush Funds Act establishes clear guardrails to prevent a future administration from repeating the Biden administration's abuse of the process to funnel taxpayer funds to radical left-wing slush funds. This bill strengthens transparency and reinforces Congress's constitutional authority over federal spending. I am glad to support this legislation to ensure accountability in the settlement process."
"The federal government has no business hijacking settlement agreements to bankroll ideological causes. When the law is broken, settlement dollars belong to victims or the American taxpayer-not hand-picked, leftist activist groups. The Stop Settlement Slush Funds Act ends this corrupt practice and forces transparency and accountability back into the system. I'm proud to support Congressman Lance Gooden's leadership in putting an end to this abuse," said Rep. Moore.
"Americans should be outraged to learn that under President Biden, federal settlement dollars often end up in the hands of radical left-wing groups that aim to undermine America, instead of being used to compensate victims or returned to the U.S. government. I am proud to co-sponsor Rep. Gooden's Stop Settlement Slush Funds Act to stop Democrats from abusing the settlement process in the future," said Rep. Roy.
"The loophole that allows left-wing activist groups to financially benefit from federal settlements must be closed once and for all. These funds should be directed to the agreeing parties instead of being used to further political agendas," said Rep. Palmer. "The Stop Settlement Slush Funds Act brings an end to this corrupt practice, and I thank Congressman Gooden for his leadership on this issue."
The bill has also received support from the National Taxpayers Union (NTU).
"Settlement agreements should compensate harmed parties or return funds to the U.S. Treasury, not serve as a workaround to Congress's constitutional power of the purse. The Stop Settlement Slush Funds Act ends a longstanding abuse of settlement authority that allows the Department of Justice to direct payments to third-party entities without proper congressional oversight. National Taxpayers Union is proud to support legislation that reinforces Congress's constitutional role and protects taxpayers from executive overreach," said Alexander Ciccone, Policy and Government Affairs Manager, NTU.
The Stop Settlement Slush Funds Act was featured in an exclusive article by Breitbart.
Read the bill text here.
For years, federal officials have abused settlement agreements to direct money intended for the U.S. Treasury or victims to outside, left-wing activist groups. The Stop Settlement Slush Funds Act bars any government official from entering into or enforcing a settlement that requires payments to third parties unless those payments directly remedy the harm caused or compensate for services rendered in the case.
"We cannot allow judicial settlements to become a funding stream for left-wing activist groups waging war against the America First agenda," said Congressman Gooden. "The Stop Settlement Slush Funds Act closes this loophole once and for all, restoring transparency, accountability, and integrity to the federal settlement process."
Specifically, the bill:
- Prohibits government officials from entering into or enforcing any settlement agreement for civil actions on behalf of the United States if that agreement requires the other party in the settlement to donate to a third party.
- Requires federal agencies to submit annual reports to the Congressional Budget Office for seven years about the permitted parties, funding sources, and distribution of funds in settlement agreements.
- Requires agency inspectors general to report annually to Congress about any agency's settlement agreements that violate this bill.
- Codifies Attorney General Bondi's prohibition on improper third-party settlements, one of her first actions following her confirmation.
"Federal settlement dollars should be used to compensate victims or returned to the U.S. Treasury, not directed to third-party organizations without congressional approval," said Congresswoman Tenney. "The Stop Settlement Slush Funds Act establishes clear guardrails to prevent a future administration from repeating the Biden administration's abuse of the process to funnel taxpayer funds to radical left-wing slush funds. This bill strengthens transparency and reinforces Congress's constitutional authority over federal spending. I am glad to support this legislation to ensure accountability in the settlement process."
"The federal government has no business hijacking settlement agreements to bankroll ideological causes. When the law is broken, settlement dollars belong to victims or the American taxpayer-not hand-picked, leftist activist groups. The Stop Settlement Slush Funds Act ends this corrupt practice and forces transparency and accountability back into the system. I'm proud to support Congressman Lance Gooden's leadership in putting an end to this abuse," said Rep. Moore.
"Americans should be outraged to learn that under President Biden, federal settlement dollars often end up in the hands of radical left-wing groups that aim to undermine America, instead of being used to compensate victims or returned to the U.S. government. I am proud to co-sponsor Rep. Gooden's Stop Settlement Slush Funds Act to stop Democrats from abusing the settlement process in the future," said Rep. Roy.
"The loophole that allows left-wing activist groups to financially benefit from federal settlements must be closed once and for all. These funds should be directed to the agreeing parties instead of being used to further political agendas," said Rep. Palmer. "The Stop Settlement Slush Funds Act brings an end to this corrupt practice, and I thank Congressman Gooden for his leadership on this issue."
The bill has also received support from the National Taxpayers Union (NTU).
"Settlement agreements should compensate harmed parties or return funds to the U.S. Treasury, not serve as a workaround to Congress's constitutional power of the purse. The Stop Settlement Slush Funds Act ends a longstanding abuse of settlement authority that allows the Department of Justice to direct payments to third-party entities without proper congressional oversight. National Taxpayers Union is proud to support legislation that reinforces Congress's constitutional role and protects taxpayers from executive overreach," said Alexander Ciccone, Policy and Government Affairs Manager, NTU.
The Stop Settlement Slush Funds Act was featured in an exclusive article by Breitbart.
Read the bill text here.
Lance Gooden published this content on February 05, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on February 05, 2026 at 16:54 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]