news

This afternoon, Congressman Bob Latta (R-Bowling Green) joined his colleagues to pass legislation, H.R. 5063, the Stop Settlement Slush Funds Act, to end the questionable system of directing Department of Justice (DOJ) settlements to special interest groups rather than going to affected victims or into the Treasury’s general fund. With increased frequency, money recovered from individuals or organizations in the settlement of civil action with the DOJ are being directed to third-party special interest groups.  An investigation by the House Committee on the Judiciary found that approximately $880 million in settlement money over a 20-month period was being directed to non-victim, third-party groups.

H.R. 5063 requires any payment made due to a settlement with a Federal agency must go to parties that were harmed by the relevant misconduct or be placed in the Treasury’s general fund.

“The money obtained from bad actors as part of these settlements should be going to affected victims or into the Treasury to be appropriated by Congress,” said Latta. “Instead, we’re seeing these funds continue to be diverted to well-connected special interests that share the goals of the Obama Administration, often with very little transparency. It’s not fair to the victims, and it’s not fair to the hardworking taxpayers to allow the diversion of this money to continue. H.R. 5063 puts an end to a practice that never should have been instituted.”