Olson Applauds House Action to Prevent Partisan Abuse of Settlement Funds

Washington, DC - Rep. Pete Olson (TX-22) today acted to stop federal agencies from funding partisan groups through the use of settlement slush funds. Olson voted for H.R. 732, the Stop Settlement Slush Funds Act, which prohibits federal agencies from requiring defendants to donate money to outside groups as part of settlement agreements with the federal government. It also requires that this settlement money goes directly to victims or to the Treasury. H.R. 732 passed the House by a vote of 238 to 183 and now heads to the Senate for consideration.

“Money from settlements should go to deserving victims, not to outside partisan groups,” Rep. Pete Olson said. “It is the job of Congress, not federal agencies, to determine how taxpayer dollars are spent. This bill will permanently restore accountability to the appropriations process so that Justice Department political appointees can’t abuse the system to funnel money to their activist friends. Congress and only Congress has the authority to decide where payments are directed. I thank my colleagues for passing this bill and encourage the Senate to do so as well.”

Background: A House Judiciary Committee investigation found that during the Obama administration the Department of Justice used these settlements to funnel billions of dollars to third-party organizations not involved in the case, many which were liberal activist groups. Attorney General Sessions has ended this practice for the current administration. H.R. 732 codifies this action into law so that future administrations can’t abuse the system in the same way.

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