February 5, 2026
The Honorable Lance Gooden
2431 Rayburn House Office Building
Washington, DC 20515
Dear Representative Gooden,
On behalf of National Taxpayers Union, the nation’s oldest taxpayer advocacy organization, I write to express our support for the Stop Settlement Slush Funds Act. This common sense legislation addresses a longstanding abuse of the Department of Justice’s settlement authority that allows settlement agreements to funnel payments to politically-favored third parties without congressional oversight.
Settlement agreements are an important tool for resolving disputes and enforcing federal law. When structured properly, they compensate harmed parties or return funds to the U.S. Treasury. Yet, in recent years, this process has been stretched beyond its intended purpose and used to direct defendants to donate money to third-party organizations selected by Executive Branch officials.
Oftentimes, funds are steered toward interest groups aligned with the administration’s political priorities. Orchestrating payments in such a manner blatantly circumvents Congress’s power over the purse and leaves taxpayers in the dark about their government’s fiscal priorities.
The Stop Settlement Slush Funds Act is a welcome reform that explicitly prohibits Department of Justice officials from formulating litigation agreements that funnel payments to any person or entity other than the United States, with limited exceptions to allow payments that remedy actual harm. This legislation also creates additional safeguards and reporting requirements for officials entering into settlement agreements.
Codifying clear limits on settlement authority ensures the Executive Branch doesn’t use settlement money to advance policy priorities outside the normal legislative process. NTU is proud to support legislation that protects Congress’s constitutional spending authority and looks forward to working with you to help it become law.
Sincerely,
Alex Ciccone
Policy and Government Affairs Manager
National Taxpayers Union