Drain the Slush Fund Act
- Sponsor
- Sen. Schiff, Adam B. [D-CA]
- Committees
- Judiciary Committee (primary)
- Last action
- Jun 1, 2026
Bottom line
This bill prevents the President or Vice President from using the federal Judgment Fund to cover legal costs, judgments, or settlements from lawsuits they initiate, aiming to protect taxpayer money from being used for their personal legal actions.
What it actually does
This bill amends section 1304 of title 31, United States Code, to prohibit the use of the federal Judgment Fund for payments arising from lawsuits or claims filed by the President or Vice President. It specifies that no judgments, awards, compromise settlements, interest, or costs from such claims can be authorized from this fund. The restrictions apply to any pending case or cause of action arising on or after January 20, 2025.
Proponents argue
Supporters argue this bill is a critical measure to prevent potential abuse of the Judgment Fund, ensuring that the President and Vice President cannot rely on federal funds to cover expenses from lawsuits they personally initiate. They contend it promotes accountability, fiscal responsibility, and reinforces the principle that taxpayer money should not be used for private legal matters of high-ranking officials.
Opponents contend
Opponents might argue that while the bill's stated intent is to prevent abuse, its broad application could potentially create an unfair financial burden on the President or Vice President for legitimate claims they might need to pursue, even if those claims are related to their public service. Some may also view it as a politically motivated measure rather than a genuine reform, especially given its applicability date.
The bill is exceptionally short and clearly written, allowing for a complete understanding in a matter of minutes, making it highly accessible for public scrutiny.
Section 2(a), amending 31 U.S.C. 1304
Prohibition on Judgment Fund Payments for Presidential/Vice Presidential Claims
This provision adds a new subsection (e) to 31 U.S.C. 1304, which governs the federal Judgment Fund. It explicitly prohibits the authorization of any payments from this fund—including judgments, awards, compromise settlements, interest, or costs—if they arise out of a lawsuit or claim filed by the President or Vice President. This means that if the President or Vice President initiates a lawsuit and is awarded damages or reaches a settlement, the federal government's Judgment Fund cannot be used to cover those amounts.
Supporters argue
Supporters argue that this provision is a crucial safeguard against potential misuse of taxpayer funds, ensuring that the President and Vice President bear the personal financial responsibility for legal actions they initiate, rather than relying on a federal fund intended for other purposes. They contend it enhances accountability and prevents conflicts of interest.
Critics contend
Opponents might argue that while the intent is to prevent abuse, the provision could be overly broad, potentially impacting legitimate claims where the President or Vice President, acting in a personal capacity, might otherwise be entitled to compensation that could be paid from the fund if they were a private citizen. However, the bill specifically targets claims *filed by* them, which limits this argument.
Tradeoffs
This provision balances the desire to prevent potential abuse of federal funds for personal legal matters against the possibility of limiting the financial recourse available to the nation's top two elected officials for claims they initiate, potentially forcing them to bear significant personal costs even for meritorious claims.
Section 2(b), Applicability
Retroactive and Prospective Applicability of Limitations
This subsection specifies that the new limitations on the Judgment Fund apply not only to any new causes of action that arise on or after January 20, 2025, but also to any cases that are already pending in the legal system at the time the bill becomes law. This means that if the President or Vice President has a lawsuit ongoing when this bill is enacted, any future judgments or settlements from that case would be subject to the new restrictions, preventing payment from the Judgment Fund.
The bill's restrictions on Judgment Fund payments apply to any pending case or any cause of action arising on or after January 20, 2025.
Section 2(b)
Why it matters:This is standard legislative practice to define the effective date and scope of a new law, rather than embedding it directly within the amended code section.
Case for: Proponents argue that this ensures the policy takes effect quickly and broadly, preventing potential claims that might be rushed through before the bill's full effect. It demonstrates a commitment to immediate reform.
Case against: Critics might argue that applying the law to pending cases could be seen as changing the rules mid-game for existing litigation, potentially raising fairness or due process concerns for those already involved in legal proceedings.
Estimated impact: This clause ensures the immediate and comprehensive application of the new restrictions, potentially affecting any ongoing lawsuits filed by the President or Vice President that are active upon the bill's enactment.