Stop Settlement Slush Funds Act of 2026 limits payments in settlement agreements to only those that provide restitution or remedy harm.
The Stop Settlement Slush Funds Act of 2026 mandates that federal agencies report annually on settlement agreements that direct payments to entities other than the United States. These reports must detail the parties involved, the source of settlement funds, and how the funds are distributed. The act prohibits officials from entering into or enforcing agreements that provide payments unless they directly remedy harm or compensate for services rendered in connection with the case. Violations of these provisions are subject to penalties.
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