Goodlatte Commends DOJ Decision to Halt Settlement Slush Funds

Washington, D.C. -- House Judiciary Committee Chairman Bob Goodlatte (R-Va.) today issued the following statement praising the Department of Justice’s decision to prohibit the use of third party settlements: “Over the last few years, the House Judiciary Committee has conducted an extensive investigation into the Obama Administration’s mortgage lending settlements. We have found that the Department of Justice was systematically subverting Congress’s spending power by requiring settling parties to donate money to activist groups. “The practice is wrong no matter which party is in power.  Attorney General Session’s integrity stands in stark contrast to the behavior of Obama Administration officials who used their position to funnel billions of settlement dollars to their political allies.  The Committee is examining stunning evidence showing that contrary to its sworn testimony, the Obama Justice Department went out of its way to keep settlement funds from going to conservative non-profits. “I am proud of the work the House Judiciary Committee has done to shine a bright light on this troubling practice and I commend Attorney General Sessions for his commitment to restoring accountability to the Department of Justice.” Background: Earlier this year, Chairman Goodlatte introduced the Stop Settlement Slush Funds Act of 2017 (H.R. 732).This bill bars the Department of Justice (DOJ), and all other government agencies, from requiring defendants to donate money to outside groups as part of their settlement agreements with the federal government.  The legislation passed the House Judiciary Committee on February 7, 2017, by a vote of 17-8 and is the same legislation that passed the House of Representatives in the 114^th Congress. Here are additional details on the Committee’s investigation:

• An investigation by the House Judiciary and Financial Services Committees revealed that, in approximately just two years, the Obama Administration’s DOJ used mandatory donations to direct nearly a billion dollars to activist groups.
• These payments occurred entirely outside of the Congressional appropriations and oversight process.
• The House Judiciary Committee held two hearings, in February 2015 and May 2015, to question DOJ officials regarding these troubling settlement practices.
• The Committees also sent multiple oversight letters including two to DOJ (in November 2014 and May 2015) seeking documents and answers.
• The information provided confirms that activist groups which stood to gain from mandatory donation provisions were involved in placing those provisions in the settlements.
• This bill is identical to the Stop Settlement Slush Funds Act of 2016. A legislative hearing on that bill was held on May 28, 2016 within the Subcommittee on Regulatory Reform, Commercial and Antitrust Law.
• The Stop Settlement Slush Funds Act of 2016 (H.R. 5063) passed the House by a vote of 241-174 on September 9, 2016.
• The House Judiciary Committee sent a letter to the DOJ on January 11, 2017, requesting a preservation of all documents related to DOJ’s settlement practices.
• The investigation is ongoing.