To limit donations made pursuant to settlement agreements to which the United States is a party, and for other purposes.

Sponsor: Lance Gooden (Republican-TX)February 5, 2026

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Introduced

In Committee

Passed One Chamber

Passed Both Chambers

Signed into Law

Referred to the House Committee on the Judiciary.

Limits how government can direct payments in legal settlements.

This bill would stop government officials from directing payments in legal settlements to groups that didn't directly suffer harm or provide services. It would also create new reporting and audit rules for federal agencies. This means payments from government settlements would go only to those directly affected or providing services, not to other third parties.

What Would Change

Right now, government officials can direct money from legal settlements to groups that weren't directly harmed or didn't provide services. If this bill passes, officials would only be able to direct payments for direct harm or services. Federal agencies would also face new annual reporting and audit rules.

Key Provisions

Bans government officials from directing settlement payments to groups not directly harmed or providing services.
Penalizes government officials who violate the new rules for settlement payments.
Requires federal agencies to annually report to the Congressional Budget Office on settlement payments made for harm or services.
Requires agency watchdogs (Inspectors General) to publicly report any settlement agreements that break these new rules.
Blocks new funding for the required agency reports and audits.

View on Congress.gov

HR 7387 · 119th Congress · February 5, 2026 · AI Summary by gemini-2.5-flash · 9/10

To limit donations made pursuant to settlement agreements to which the United States is a party, and for other purposes.

What Would Change

Key Provisions

Lobbying Activity