H.R.732 - Stop Settlement Slush Funds Act
H.R.732 - Stop Settlement Slush Funds Act
The House passed (238-183) H.R. 732 a measure that bars government agencies, from requiring defendants to donate money to outside groups as part of their settlement agreements with the federal government.
The House Judiciary Committee discovered from internal Dept of Justice documents that the Obama Administration used settlements to funnel money to its political allies while excluding conservative groups.
Rep. Bob Goodlatte (R-VA)
It’s no secret. During the last Administration, with the help of President Obama’s trusty pen and phone, the power of the executive branch frequently stretched beyond the separation of powers defined by the United States Constitution. We saw the President frequently legislating without Congress and executive agencies flat out ignoring the intent of Congress when implementing laws. The Constitution isn’t a “choose your own adventure” story.
This practice is wrong no matter which party is in power...Whether the beneficiaries of these donations are worthy entities or not is entirely beside the point. It is not the decision of federal bureaucrats to make. The Constitution is clear: Congress has the power to decide how money is spent. When DOJ recovers money from parties who have broken the law, those funds should rightly be awarded to victims or sent back to Treasury, not funneled to special interests.
Rep. Steny Hoyer (D-MD)
This bill would sharply limit the ability of the Department of Justice (DOJ) and other government agencies to address unlawful conduct, provide restitution, or to adequately address illegal conduct by prohibiting settlement agreements involving the U.S. government from requiring that the defendant make payments to an organization or individual not a party to the litigation. Under existing law, settlement terms that result from federal enforcement actions can include payments to third parties to advance programs that assist with recovery, benefits, and relief for communities harmed by lawbreakers, to the extent such payments further the objectives of the enforcement action.
As a matter of public policy, H.R. 732 will, if enacted, hamper the federal government’s ability to punish companies and organizations that engage in unlawful conduct, such as financial firms that engaged in mortgage fraud that contributed to the 2008 financial crisis. Amplifying the flaws of H.R. 732 is that the legislation is so poorly and broadly written that it will severely deter agencies from pursuing settlements and invite legal challenges to proposed settlements.
