Goodlatte Applauds Committee Passage of Bill to Promote Transparency in Government Settlements

Washington, D.C. -- House Judiciary Committee Chairman Bob Goodlatte (R-Va.) released the following statement applauding today’s Committee passage of the Judgment Fund Transparency Act of 2017 (H.R. 1096) by a voice vote. “When hardworking Americans pay their taxes, they expect their money to be used by the government in an honest and open manner.  Congress, moreover, has a duty to ensure that the public is properly informed about where their money is going.“High-profile settlements by the United States have revealed that information about Judgment Fund payments is either difficult to find or unavailable.  This bill would improve accessibility to this information by requiring that details about these payments be made publicly available on the Treasury Department’s website.“Greater transparency of the Judgment Fund will allow the American people to better understand how the government is using their funds, and determine for themselves whether or not they are being used wisely.”Background: The Judgment Fund was originally set up to provide a mechanism for the federal government to pay damages to parties, in a timely manner, who have been harmed by the federal government. The purpose of the Judgment Fund is thus a good one, but the administration of it must be more transparent. The use of the Judgment Fund has come under recent scrutiny when monies from the fund were used in a settlement with Iran, which lacked proper transparency and clear reporting to the American public. H.R. 1096, the Judgment Fund Transparency Act, requires the Department of the Treasury to disclose details after payments are made from the Judgment Fund, which is a permanent and indefinite appropriation to pay final judgments and settlements against the United States. Unless the disclosure is prohibited by law or a court order, Treasury must make available to the public on a website information regarding the claim. If the payment is made to a foreign state, Treasury must provide additional information, including the method of payment, currency used, and the financial institution of the foreign state that received the funds. In addition, H.R. 1096 prohibits payments from the Judgment Fund to a state sponsor of terrorism. The House Judiciary Committee has held two recent hearings on the lack of transparency surrounding the Judgment Fund.  The Committee held a hearing on September 7, 2016, titled “Oversight of the Judgment Fund: Iran, Big Settlements, and the Lack of Transparency” and an additional oversight hearing was held on March 2, 2017.