No Taxpayer Bailouts for Insurrectionists Act of 2026
- Sponsor
- Rep. Titus, Dina [D-NV-1]
- Committees
- Judiciary Committee (primary)
- Last action
- Jun 3, 2026
Bottom line
The bill aims to prevent federal funds from being used for significant settlement payments to certain government officials, their families, political appointees, and January 6th insurrectionists, with a specific focus on a case involving a former President.
What it actually does
This bill prohibits the obligation of federal funds, including from the Judgment Fund, for settlement agreements of $50,000 or more with "covered persons." It specifically blocks a settlement in "Trump v. Internal Revenue Service" and defines "covered persons" to include high-ranking officials, their immediate families, political appointees, and individuals convicted in relation to the January 6, 2021, Capitol events. It also requires a report to Congress from the Attorney General for any covered settlement and mandates a GAO study on the "Trump v. IRS" settlement.
Proponents argue
Proponents would argue that this bill ensures taxpayer money is not used to bail out individuals who may have abused their public trust or engaged in criminal acts against the government. They would emphasize accountability and the prevention of perceived unjust enrichment, particularly in cases involving high-profile individuals or those involved in the January 6th events.
Opponents contend
Opponents might argue that the bill is politically motivated and could interfere with the fair administration of justice by singling out specific individuals or classes of people for different treatment under the law regarding settlement agreements. They might also raise concerns about potential due process issues or the precedent of legislating specific legal outcomes.
The bill is very short and straightforward, allowing for quick comprehension by any interested reader.
Section 1
Short Title
This section establishes the official short title of the Act as the "No Taxpayer Bailouts for Insurrectionists Act of 2026." This title clearly communicates the bill's intent and target audience, signaling its focus on accountability related to specific events and individuals.
Supporters argue
Supporters would argue that the short title clearly and concisely communicates the bill's purpose and target, making it easy for the public to understand its intent and the values it represents.
Critics contend
Opponents might argue that the title is politically charged and inflammatory, designed to create a negative perception of those it targets rather than neutrally describing the legislation's operative effects.
Tradeoffs
The tension lies between providing a clear, descriptive title that reflects the bill's intent and one that might be perceived as politically biased or accusatory.
Section 2(a)
General Limitation on Settlement Funds
This provision prohibits the federal government from obligating $50,000 or more from any source, including the Judgment Fund (section 1304 of title 31, U.S. Code), for settlement agreements with "covered persons" unless done in accordance with the Act. This sets a financial threshold and a procedural requirement for such settlements, aiming to increase scrutiny.
Section 2(b)
Specific Prohibition for Trump v. Internal Revenue Service
This subsection explicitly prohibits any obligation of funds pursuant to the settlement agreement in the case of "Trump v. Internal Revenue Service, No. 1:26-cv-20609 (S.D. Fla.)." This is a direct legislative intervention into a specific, named legal case, preventing any federal payment related to that settlement.
Section 2(c)
Definition of "Covered Person"
This section defines "covered person" to include the President, Vice President, cabinet officials, their immediate family members (parent, spouse, child, or spouse of a child), political appointees, and any person convicted of a criminal offense related to the January 6, 2021, events at the U.S. Capitol. This broad definition determines who is subject to the settlement fund limitations and reporting requirements.
Section 3
Attorney General Reporting Requirement
For any settlement agreement of $50,000 or more with a "covered person," the Attorney General must submit a report to Congress at least 90 days before the obligation is made. This report must detail every claim and payment, the legal justification for the settlement, and include a certification from the Department of Justice Inspector General that the settlement is lawful and ethical.
Section 4
GAO Study on Trump v. IRS Settlement
This section mandates that the Comptroller General of the United States (GAO) conduct a study and submit a report to Congress within 90 days of the Act's enactment. The study must examine whether any obligation of funds or expenditures from the compensation fund established in the "Trump v. Internal Revenue Service" settlement comply with appropriations law, specifically sections 1341, 1342, and 1511 through 1519 of title 31, U.S. Code.