Limiting Settlement Payments to Entities Other Than the U.S. Government
New rules aim to restrict the U.S. government from directing settlement funds to entities other than itself. This ensures that money from legal settlements goes directly to those harmed or pays for services related to the case, increasing transparency in public spending.
Key points
Government officials cannot direct settlement payments to anyone other than the U.S. government, unless it's direct compensation for harm or payment for services.
Officials who violate these rules may face penalties.
Federal agencies must report annually on such settlements, and their Inspectors General will audit for compliance.
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