Frankel Moves to Halt Trump’s $1.8 Billion Slush Fund Settlement

Frankel Moves to Halt Trump's $1.8 Billion Slush Fund Settlement

Today, Representative Lois Frankel (D-FL-22) joined Democratic colleagues in introducing legislation to stop President Trump's $1.8 billion "weaponization" slush fund settlement from taking effect.

At the center of the controversy is a newly announced agreement between President Trump and his own Department of Justice (DOJ). The DOJ announced that Trump agreed to drop his $10 billion lawsuit against the Internal Revenue Service (IRS) over the leak of his tax returns in exchange for the creation of a $1.776 billion fund for people claiming they were unfairly targeted by the Biden Administration - including individuals charged for their actions attacking the Capitol on January 6, 2021. The agreement also shields Trump, his family, and his companies from certain unpaid tax claims by the IRS.

Rep. Frankel joined Democratic colleagues in cosponsoring two pieces of legislation to prevent presidents from using the power of the federal government for personal or political gain.

• The No Taxpayer-Funded Settlement Slush Funds Act would expressly prohibit the use of federal funds to create or finance the slush fund established under Trump's IRS settlement, and prohibit any payments from the Treasury Department's Judgment Fund - which pays settlements and court judgments involving federal agencies - to go to the President, Vice President, their immediate family members, entities they control, and political appointees. For the full text of the bill, click here.

• The SLUSH FUND Act would require the Treasury Department to publicly disclose recipients of payments from the slush fund and tax any payments received from the fund at 100 percent. For full text of the bill, click here.

"I was in the Capitol on January 6 when a violent mob attacked the Capitol police and our democracy, so I saw firsthand the consequences when leaders abuse their power," said Rep. Frankel. "Now President Trump is using his own Justice Department to create a billion-dollar fund that could reward political allies and January 6 defendants while shielding himself and his businesses from accountability. Americans want lower costs, safer communities, and a government that works for them - not taxpayer-funded payouts for the President's inner circle."