Stop Settlement Slush Funds Act of 2023

Floor Speech

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Ms. MCCOLLUM. Mr. Speaker, I rise in opposition to H.R. 788.

H.R. 788 would prevent the Department of Justice from negotiating settlements in court cases to include payments to third parties, such as nonprofits, community organizations, trusts, or foundations. This redirection of funds is especially important in cases when harm is difficult to monetize, such as assessing damage to the environment or unknown health outcomes to individuals resulting from chemical exposures. In these cases, third parties are able to utilize the small portion of settlements they receive to help rectify the harm done by the plaintiff. For example, after the 2010 BP oil spill in the Gulf of Mexico, $20 million was redirected to groups aiming to restore the health of the Gulf--one way to further remedy the environmental harm caused by BP. It is critical the federal government retains its ability invest in harm remediation while holding bad actors accountable.

Congress should not be undermining the Department of Justice's ability to hold corporations accountable when they do harm to the public. The federal government must retain all its tools in its effort to protect the public interest and enforce our nation's laws. Instead of undermining the ability to settle cases with just outcomes for those impacted, we should be focused on passing legislation that serves the needs of the American people.

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