What This Bill Does
This bill would place limits on judgments, awards, and compromise settlements paid under section 1304 of title 31, the federal law that governs certain payments from the Judgment Fund. In practical terms, it is aimed at capping how much the federal government can pay in some court-ordered awards and negotiated settlements. The measure would affect people and entities that win claims against the United States, as well as agencies that rely on the Judgment Fund to resolve legal liability. Its core mechanism is to restrict the size of payments that can be made under that statute.
- Limits judgments paid under 31 U.S.C. section 1304
- Applies to awards and compromise settlements
- Targets payments made from the federal Judgment Fund
- Would affect claimants paid by the United States
- Could constrain agency settlement authority
Who This Bill Affects
If you are a person or business with a claim against the federal government, this bill could reduce the amount you can recover in a judgment, award, or settlement under section 1304. If you are a taxpayer or someone concerned about federal spending, it could limit how much the government pays out in these cases and potentially reduce large claims against the Treasury.
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- Taxpayers concerned about federal spending They would likely support caps on federal payouts as a way to protect the Treasury and reduce large or unpredictable liabilities. Limiting awards can also encourage more disciplined settlement practices by federal agencies.
- Federal budget watchdogs They may argue that the Judgment Fund should not be used for open-ended or excessive payments. Clear limits can improve fiscal predictability and reduce incentives for inflated claims.
- Agencies facing litigation exposure Some agencies may favor tighter limits if they believe it will reduce pressure to settle cases at high amounts. A cap can create a more consistent framework for resolving claims.
- Individuals and businesses with valid claims against the government They may argue that limits can leave injured parties undercompensated even when the government is legally responsible. Lower caps can make it harder to obtain full relief for losses caused by federal action.
- Plaintiffs' attorneys and claims advocates They may contend that restricting awards weakens the leverage needed to reach fair settlements. If the government can pay less, some meritorious cases may be harder to resolve efficiently.
- Contractors and service providers doing business with the federal government They may worry that payment limits increase financial risk when disputes arise. That can make federal contracting less attractive or raise the cost of doing business with the government.
Key Implications
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““limitations on judgments, awards, and compromise settlements””
This signals that the bill would not just affect court verdicts; it would also reach negotiated settlements. That can change how quickly disputes are resolved and how much leverage claimants have in negotiations.
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““under section 1304 of title 31””
Section 1304 is the federal payment mechanism for many claims against the government. Any limit placed here can affect a wide range of cases paid from the Judgment Fund.
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““judgments, awards””
This language points to payments ordered after a legal decision. People who win against the federal government could see their recoveries constrained if the bill becomes law.
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““compromise settlements””
This suggests the bill would also reach negotiated resolutions before a final judgment. Agencies may become more cautious about settlement amounts if statutory limits are tightened.
Latest Status
June 10, 2026
Referred to the House Committee on the Judiciary.
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Ask AI about this billData sourced from api.congress.gov.