Column: Stop Settlement Slush Funds

Instead of serving time or paying fines to the government for breaking the law, community service or donating money to charity is offered to individuals and companies as an alternative. However, funneling money, which would otherwise be used to benefit the public, to partisan non-profit organizations is pure corruption.

That is exactly what occurred under the Obama Administration. And while this practice was banned by President Trump, President Biden’s Department of Justice (DOJ) is in the process of bringing it back.

In practice, it looks like this: a company enters a settlement agreement for civil actions and in exchange for every dollar they “donate” to a third-party non-profit, two dollars are credited towards their settlement obligations. The kicker is that partisan, third party organizations such as the National Council of La Raza, which advocates for amnesty for illegal immigrants, are perfectly eligible recipients.

The Biden administration is seeking to reverse the prohibition and once again allow this crony practice to take place. Settlementfunds would be directed to groups that are political friends of whoever occupies the White House, rather than be used to repay taxpayers. It doesn’t matter whether the money benefits liberal or conservative organizations, this practice is a prime example of the typical Washington behavior Americans disdain.

To prevent the Biden Administration from revoking the DOJ’s rule prohibiting this practice, I’ve joined 18 colleagues in sponsoring the StopSettlementSlushFunds Act. This bill prohibits government officials from entering or enforcing any settlement agreement for civil actions on behalf of the United States if that agreement requires the other party in the settlement to donate to a third party.

Government officials shouldn’t take money away from taxpayers and put it in the pockets of their political allies. This legislation would prevent this practice that puts politics first and taxpayers last.