Drain the Slush Fund Act
- Sponsor
- Rep. Crow, Jason [D-CO-6]
- Committees
- Judiciary Committee (primary)
- Last action
- Jun 10, 2026
Bottom line
The bill aims to prevent the President or Vice President from receiving federal payments for legal judgments or settlements in cases they personally initiate, applying to current and future claims.
What it actually does
This bill amends section 1304 of title 31, United States Code, to prohibit the use of federal funds from the Judgment Fund for any judgment, award, compromise settlement, interest, or costs that arise out of a lawsuit or claim filed by the President or Vice President. This prohibition applies to any pending case or cause of action arising on or after January 20, 2025.
Proponents argue
Supporters argue that this bill is a necessary measure to prevent potential conflicts of interest and the perceived abuse of public funds. They contend it ensures that the President and Vice President cannot personally profit from litigation at taxpayer expense, reinforcing ethical boundaries and promoting fiscal responsibility for high-ranking officials.
Opponents contend
Opponents might argue that this bill could infringe upon the legal rights of the President or Vice President as citizens, potentially denying them due process or equal protection under the law. They may also suggest it could be a politically motivated measure that unfairly targets specific individuals or offices, rather than addressing a systemic issue.
The bill is exceptionally short and clear, making it very accessible for a quick and comprehensive understanding of its provisions.
Section 2(a)
Prohibition on Federal Payments for Presidential or Vice Presidential Lawsuits
This provision amends 31 U.S.C. 1304, which governs the Judgment Fund, to explicitly state that no federal funds from this account can be used to pay for any judgment, award, compromise settlement, interest, or associated costs that result from a lawsuit or claim initiated by the President or Vice President. This means if the President or Vice President files a personal lawsuit and is awarded damages or reaches a settlement, the federal government cannot cover those financial obligations.
Supporters argue
Supporters argue this provision is essential to prevent the President and Vice President from leveraging their powerful positions to benefit financially from personal lawsuits at taxpayer expense. It ensures that public funds are not used to subsidize private legal actions, thereby upholding ethical standards and preventing perceived conflicts of interest.
Critics contend
Critics might contend that this provision unfairly singles out the President and Vice President, potentially denying them the same legal recourse and financial protections available to other citizens. They could argue it might discourage them from pursuing legitimate claims or make them vulnerable to frivolous lawsuits without the possibility of federal support for recovery.
Tradeoffs
The provision navigates the tension between ensuring robust public accountability and preventing potential abuse of public funds by high-ranking officials, versus concerns about potentially limiting the legal rights and protections of the President and Vice President as individuals.
This section specifies that the bill's provisions and amendments apply to any case currently pending or any cause of action arising on or after January 20, 2025.
Section 2(b)
Why it matters:This is standard legislative practice for defining the effective date and scope of a new law, ensuring clarity on when and to what situations the new rules apply.
Case for: Supporters would argue that applying the law to pending cases ensures immediate effect and prevents individuals from circumventing the new rule by rushing claims. The future effective date of January 20, 2025, aligns with a new presidential term, providing clear prospective guidance.
Case against: Opponents might argue that applying the law to 'pending cases' could be seen as retroactive, potentially disrupting ongoing legal proceedings and raising concerns about due process for claims already in progress before the bill's enactment.
Estimated impact: This clause determines the temporal scope of the bill's impact, affecting any relevant legal actions initiated by the President or Vice President from January 20, 2025, onwards, and any cases already in progress at the time of enactment.