Larson and Ways and Means Democrats Introduce SLUSH FUND Act to Tax Presidential Settlements at 100%

May 20, 2026 Press Release Washington, D.C. - Today, Rep. John B. Larson (CT-01) announced new legislation to prevent sitting presidents from profiting off of lawsuits against their own government with Tax Subcommittee Ranking Member Mike Thompson (CA-04) and Ways and Means Committee Ranking Member Richard E. Neal (MA-01). The SLUSH FUND Act would tax the President’s unethical $1.8 billion slush fund settlement with the IRS meant to benefit January 6th rioters and other MAGA allies at 100 percent, rightfully returning taxpayers’ money back to the people of the United States.  The legislation also imposes an additional 50 percent penalty on any willful attempt to avoid or evade the tax. This week, Larson announced plans to introduce legislation to require Congressional approval before the Department of Justice can spend taxpayer dollars on any legal settlement resolving a case involving the President, the President’s immediate family, or any business entity they own or control. When President Trump first filed his lawsuit against the IRS, Larson and Thompson introduced the Prevent Presidential Profiteering Act to preemptively block the President and his allies from collecting any settlement arising from the case. “The President should be focused on public service, not personal gain and profit,” said Larson . “Never in our nation’s history has a sitting president sought a settlement against their own government. Hardworking American taxpayers should not have to write blank checks to Trump, his cronies, and violent January 6 th insurrectionists who attacked our Capitol. We cannot allow Donald Trump to continue to treat the American people like his next get-rich-quick scheme. Not a single penny of your money should be siphoned off to his pockets. Our bill will keep taxpayer funding where it belongs, not in the hands of the Trump family and convicted criminals who support them.” “This president continues to use the Office of the Presidency for personal gain, including by suing the federal government to line the pockets of January 6th insurrectionists who attacked law enforcement and tried to overturn our democratic election. That’s unacceptable,” said Tax Subcommittee Ranking Member Mike Thompson . “My legislation ensures if a sitting president sues our government while in office, they get taxed 100 percent on any money paid through a trial or settlement.” “Donald Trump has turned the presidency into a personal profit center using taxpayer dollars to reward the same extremists who attacked our democracy on January 6th, and enrich his family empire, all while Republicans look the other way,” said Ways and Means Committee Ranking Member Richard E. Neal . “If the President wants to run a corrupt slush fund for insurrectionists and political cronies, the American people shouldn’t be forced to bankroll it.” View full bill text HERE . Issues : Congressman Larson's Committees Judicial Standing Up to Trump and ‘DOGE’ Tax Policy