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Limiting Settlement Payments to Non-Government Entities

This act aims to restrict the ability of the U.S. government to direct settlement funds to entities other than the government itself. It means that money from such settlements can only be used for direct harm remediation or payment for case-related services, not for general donations. This ensures public funds are used more transparently and purposefully.
Key points
Funds from U.S. government settlement agreements can only be used for direct harm remediation (e.g., environmental) or payment for case-related services.
Prohibits directing settlement funds as donations to organizations or third parties not directly harmed.
Officials violating these rules may face penalties.
Federal agencies must annually report on settlements where funds went to non-government entities, detailing their use.
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Additional Information
Print number: 117_S_2079
Sponsor: Sen. Tuberville, Tommy [R-AL]
Process start date: 2021-06-16