The SLUSH FUND Act of 2026 imposes a 100% tax on payments from civil action settlements against the U.S.
The SLUSH FUND Act of 2026 amends the Internal Revenue Code to impose a 100% tax on specified settlement fund payments. These payments are defined as any amount received from funds, trusts, or accounts derived from civil actions filed by former U.S. presidents or their families against the U.S. government. The bill also mandates that trustees, administrators, or other fiduciaries report these payments to the IRS and taxpayers. Failure to file the required return results in a penalty of $10,000 per failure. The tax and reporting requirements apply to payments received on or after May 20, 2026.
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