As Trump Administration Sets Up $1.8 Billion Slush Fund To Funnel Money to Trump Allies Committing Crimes on Behalf of the President, Congresswoman Lizzie Fletcher Introduces Bill To Prohibit Self-Dealing Settlements

Today, Congresswoman Lizzie Fletcher (TX-07) introduced the No Presidential Self-Serving Lawsuits Act to bar any president from initiating civil lawsuits against the U.S. government while in office and to prohibit use of the Treasury’s Judgement Fund to settle civil claims a president filed, even after leaving office.  The bill follows the announcement that President Trump initiated a lawsuit against the IRS and settled it by creating a slush fund to pay his allies for purported claims on “weaponization” of the legal system, including those charged in connection with the January 6 attack on the U.S. Capitol. "President Trump’s $10 billion lawsuit and unvetted ‘settlement’ agreement with a government department acting at his behest is a perversion of our system of justice,” said Congresswoman Lizzie Fletcher .  “Most of us could not have imagined that such a ‘settlement’ could occur, or that there are not more clear and obvious prohibitions to this outcome.  But here we are: the President of the United States brought a lawsuit against the United States, appointed his personal attorney to the Department of Justice, and then ‘settled’ with the United States by creating a nearly $2 billion slush fund of our tax money to hand out to his supporters, including those who stormed the Capitol on January 6, without oversight, disclosure or guardrails.  The corruption and abuse is staggering, even for this administration.  That is why I am introducing the No Presidential Self-Serving Lawsuits Act to ensure that no president can use the power of the office to turn the courts and the Treasury into a personal rewards program for their political allies.  And I am glad to lead the effort on this bill with the support of many original co-sponsors and endorsing organizations.  It’s hard to believe we have to do this, but we do." In January, President Trump, his eldest sons, and the Trump Organization sued the IRS and Treasury Department for $10 billion over the leak of his private tax returns during his first term.  Federal judges questioned whether the two sides were genuinely adverse—given that Trump controls the agencies he's suing—and pressured both parties to settle. The proposed settlement would draw from the Treasury's Judgment Fund, a taxpayer-funded account for settled government claims, to compensate individuals allegedly targeted or "weaponized" against by the Biden administration.  Eligible recipients could include Trump political allies, Trump-affiliated entities, and the nearly 1,600 defendants charged in connection with January 6.  Trump would control a five-member commission with authority to approve awards, retain power to fire members without cause, and keep recipient identities private. Congressman Gabe Amo (RI-01), Congresswoman Suzanne Bonamici (OR-01), Congressman André Carson (IN-07), Congressman Troy Carter (LA-02), Congressman Joaquin Castro (TX-20), Congressman Steve Cohen (TN-09), Congresswoman Angie Craig (MN-02), Congresswoman Dianna DeGette (CO-01), Congressman Lloyd Doggett (TX-37), Congresswoman Lois Frankel (FL-22), Congressman Al Green (TX09), Congresswoman Eleanor Holmes Norton (DC-AL), Congressman Jared Huffman (CA-02), Congresswoman Jennifer McClellan (VA-04), Congressman Christian Menefee (TX-18), Congresswoman Gwen Moore (WI-04), Congressman Seth Moulton (MA-06), Congressman Jerrold Nadler (NY-12), Congressman Scott Peters (CA-50), Congresswoman Chellie Pingree (ME-01), Congresswoman Emily Randall (WA-06), Congresswoman Andrea Salinas (OR-06), Congressman Paul Tonko (NY-20), Congresswoman Bonnie Watson Coleman (NJ-12), and Congresswoman Nikema Williams (GA-05) joined Congresswoman Fletcher as original co-sponsors of this legislation. Lawyers for Good Government and Public Citizen endorsed the legislation. Congresswoman Fletcher is a member of the Democratic Litigation and Response Taskforce.  On Monday, she joined 92 of her Democratic colleagues in filing an amicus brief on a motion to block the settlement. To view the full text of the bill, click here .