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Limiting Donations from US Government Settlements to Third Parties

New rules restrict the US government from directing settlement funds to individuals or entities not directly harmed by the dispute. This aims to ensure settlement money goes to actual victims or directly remedies the harm caused.
Key points
US government settlement funds can only go to parties in the dispute or direct victims.
Exceptions include restitution for victims, payments for settlement-related services, and repatriation of funds in foreign corruption cases.
Prohibits distributing remaining settlement funds to third-party organizations (cy-pres).
Federal agencies must report on settlements and how funds are distributed.
Agency Inspectors General will audit settlements for compliance with the new rules.
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Additional Information
Print number: 117_S_4444
Sponsor: Sen. Lankford, James [R-OK]
Process start date: 2022-06-22