Senate Democrats Sens. Mark Kelly, Adam Schiff and Elissa Slotkin introduced the Drain the Slush Fund Act to block a Justice Department settlement fund tied to President Trump’s IRS lawsuit. The bill would bar taxpayer payments to Trump, his associates, convicted individuals, or anyone involved in Jan. 6 and would ban settlements stemming from claims by a sitting president or vice president, retroactive to Trump’s second inauguration. The DOJ said it abandoned the $1.776 billion fund after federal judges temporarily halted payouts and reopened litigation. Sponsors called the fund corrupt and pledged to force a vote to shut it down.
Senate Democrats File 'Drain the Slush Fund Act' To Block DOJ's $1.776B Settlement Fund
Senate Democrats on Monday introduced legislation aimed at blocking a Justice Department fund tied to a settlement in President Trump's lawsuit against the IRS. The measure — dubbed the Drain the Slush Fund Act — was filed by Sens. Mark Kelly (Ariz.), Adam Schiff (Calif.) and Elissa Slotkin (Mich.).
The bill would prohibit the use of taxpayer money to pay President Trump, his associates, individuals convicted of crimes, or anyone involved in the Jan. 6, 2021, attack on the U.S. Capitol. It would also restrict the Justice Department’s settlement fund by banning settlements or payments that arise from claims or lawsuits initiated by a sitting president or vice president. That restriction would apply retroactively to the day of President Trump’s second inauguration.
The DOJ announced on Monday that it had abandoned the $1.776 billion fund it created last month as part of a settlement agreement in Trump’s lawsuit against the Internal Revenue Service. The decision followed rulings by federal judges in Virginia and Florida last Friday that temporarily halted payouts and, in Florida, reopened litigation tied to the IRS dispute.
The Department posted on the social platform X that, while it “disagrees strongly” with U.S. District Judge Leonie Brinkema’s ruling in Virginia, it would comply with the court’s order.
When Acting Attorney General Todd Blanche unveiled the fund last month, lawmakers from both parties pushed back. Democrats criticized it as a “slush fund” for people tied to Jan. 6, and some Republicans also raised concerns; Senate Republicans questioned Blanche about the plan during a May 21 briefing.
Sen. Mark Kelly: “This is theft in broad daylight.”
Sen. Adam Schiff: “One of the most brazenly corrupt schemes we’ve ever seen from a U.S. president.”
Sen. Elissa Slotkin: “An unprecedented misuse of taxpayer money.”
The bill’s sponsors have also been the subject of separate controversies and scrutiny in recent months, drawing additional attention to the legislation and its political implications. Supporters of the bill say it is needed to ensure taxpayer dollars are not used to shield wrongdoing, while opponents have argued the settlement mechanism was meant to resolve complex litigation.
Schiff said Democrats will press for a vote on the measure as Congress returns to Washington, arguing that voters should not have to foot the bill for what he called government ‘‘weaponization.’’ The authors of the bill say it would close a loophole and prevent future administrations from directing settlement funds to politically connected individuals.
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