hold on there's just too much going on in Congress lmao...
Bans settlements that send money to non-government third parties.
Rep. Lance Gooden (R-TX), plus 9 cosponsors.
Introduced in House, referred to Judiciary Committee.
The bill would stop federal agencies from requiring defendants to pay third parties (like nonprofit groups) as part of a settlement, unless it's for actual harm restitution or case-related services. Sponsor Rep. Gooden (R-TX) is on the Judiciary Committee. The bill has been sent to that committee for markup.
Introduced Feb 5, 2026
This bill is under review by a committee. The committee holds hearings, gathers testimony from experts and stakeholders, and may propose amendments. If the committee votes to advance it, the bill moves to the full chamber for debate and a vote.
Under current practice, the government sometimes directs settlement funds to outside groups like environmental nonprofits. This bill would largely end that, sending most money to the Treasury instead. Agencies would have to submit annual reports to the Congressional Budget Office on any third-party payments, and inspectors general would audit compliance. No extra funding is authorized for these tasks.
Supporters Say
Supporters say it prevents the government from using settlements to fund favored groups, ensuring money serves the public directly.
Critics Say
Critics argue it limits the government's ability to craft creative remedies that benefit affected communities.
Supporters, often from conservative groups, argue that directing settlement money to third parties bypasses Congressional appropriations and can be used politically. Critics, including some legal experts, say this narrows options for achieving justice, like using funds for environmental restoration or consumer education. The bill does not affect payments for direct restitution to victims.