U.S. Chamber Praises House Passage of Legislation to Bar Federal Agencies from Diverting Settlement Money to Third-Parties

October 24, 2017

WASHINGTON, D.C. - Lisa A. Rickard, president of the U.S. Chamber Institute for Legal Reform (ILR), issued the following statement today following the U.S. House of Representatives vote to pass the "Stop Settlement Slush Funds Act of 2017," (H.R. 732):

"Enforcement officials should pursue justice in a manner consistent with the public interest, not according to how much money they can generate for outside interest groups unconnected to the underlying enforcement action.

"While the Constitution gives Congress alone the power of the purse, the DOJ previously thwarted that through its settlement slush fund practices. This bill would fix this problem across the federal government, so we commend the House for passing this important legislation and urge the Senate to quickly do the same."

In June, U.S. Attorney General Jeff Sessions barred the Department of Justice from directing "slush funds" payments to third party groups as part of settlement agreements. The Stop Settlement Slush Funds Act would apply these same principles to all federal agencies.

ILR seeks to promote civil justice reform through legislative, political, judicial, and educational activities at the national, state, and local levels.

The U.S. Chamber of Commerce is the world's largest business federation representing the interests of more than 3 million businesses of all sizes, sectors, and regions, as well as state and local chambers and industry associations.