This bill would prohibit officials from settling lawsuits filed against the federal government in a way that would require a defendant to make a “donation” of money to outside groups as part of the settlement agreement with the federal government. The Dept. of Justice (DOJ) has been requiring banks and insurance companies to “donate” some of the imposed penalty to selected nonprofits, which in some cases are political activist groups like the National Council of La Raza.
Government officials who violate this prohibition could be removed from office or required to forfeit to the government any money that they hold for the settlement or may be entitled to.
The definition of “donation” under this legislation would exclude a payment by a party to the lawsuit for restitution or otherwise fixing the harm caused by whatever conduct led to the settlement agreement.