In-Depth: Sponsoring Rep. Bob Goodlatte (R-VA) cited a lack of Congressional oversight regarding how the funds from these settlements are allocated to nonprofit groups as a primary reason for introducing this bill:

“This common sense bill merely ensures that settlement money goes either to direct victims or to the Treasury for the people’s elected representatives to decide how best to allocate these resources with appropriate oversight to ensure accountability. It is critical that we act. DOJ is ignoring Congress’ concerns — increasing the use of mandatory donation terms, even as we object.”

This legislation was passed by the House Judiciary Committee on a vote of 18-6, and it currently has 32 cosponsors in the House, all but one of whom are Republicans.

Of Note: The Wall Street Journal reported that the DOJ’s use of mandatory donation terms actually reduces the total penalty to be paid by a corporation. In the case of Bank of America, a $500,000 donation to La Raza would reduce its total penalty by at least $1 million, whereas providing direct relief to victims would only be counted dollar-for-dollar.

Media:

• Sponsoring Rep. Bob Goodlatte (R-VA) Press Release
• Daily Caller
• Townhall
• Wall Street Journal