Bill to bar presidents and vice presidents from taxpayer-funded settlements

What This Bill Does

The Ban Presidential Plunder of Taxpayer Funds Act would add a new section to title 28 of the U.S. Code to stop current presidents, vice presidents, and certain related entities from receiving settlement or damages payments from the United States while they are in office. It would also bar them from filing administrative claims for damages, reimbursement, attorney’s fees, or other payments, whether cash or in kind. For civil lawsuits, the bill would sharply limit awards to actual or compensatory damages and require an independent counsel process before any such award could be made. The bill also sets penalties, including disgorgement, civil fines of up to the greater of $1 million or the payment amount, and up to 5 years in prison for willful violations.

This bill is aimed at a specific conflict-of-interest problem: the possibility that a sitting president or vice president could influence the federal government while also seeking money from it. Under proposed section 2417, a “covered individual” includes the President, Vice President, certain former presidents if their former vice president is president, spouses and dependent children, and trusts or other entities controlled for their benefit. The core rule is a broad ban on covered individuals recovering or directing any settlement-related payment from the United States in administrative claims, civil actions, or similar arrangements, and a separate ban on filing administrative claims at all while they are covered. The bill also tries to prevent executive-branch self-dealing by requiring that no department or agency may process or fulfill such claims on behalf of a covered individual. If a covered individual sues the United States in court under some other law, the court may not award anything beyond actual or compensatory damages, and even those damages can be awarded only if the claimant agrees to an independent counsel appointed by the court, the court appoints that counsel, and the agency cooperates with that counsel. To increase transparency, the bill requires public online access to filings, proceedings, and even contemporaneous audio of court sessions in these cases. The bill does not permanently bar former presidents or vice presidents from making claims. After leaving office, they may file claims or suits, but only under guardrails: an expert career employee must lead the review, no executive-branch employee or official appointed by a covered individual may participate, and any settlement terms and payment details must be published in the Federal Register within 7 days. The agency must also send the relevant congressional committees a copy of the claim or suit and any approval or denial. Penalties are substantial: willful violations can trigger disgorgement, civil penalties of up to the greater of $1 million or the payment amount, and up to 5 years’ imprisonment; officers or employees who willfully cause an agency to violate the processing ban face up to $50,000 and up to 6 months in prison.

Who This Bill Affects

For the general public, this bill would mainly affect how taxpayer money can be paid to presidents, vice presidents, and closely related entities in settlement or damages cases. It would not create a new benefit for ordinary people, but it could reduce the chance that high-level officeholders receive payments from the federal government while in office and would require public disclosure of any post-office settlements or payments within 7 days. If you are not a president, vice president, spouse, dependent child, or controlled trust/entity tied to one, the bill would have little direct personal effect.

Latest Status

April 15, 2026

Read twice and referred to the Committee on the Judiciary.

Will It Pass?

29% estimated chance of becoming law

This bill has been introduced in the Senate and, as of the recent action listed, was read twice and referred to the Committee on the Judiciary. That is an early stage in the legislative process, so it has not yet advanced to floor consideration or received any recorded committee action. Its prospects will likely depend on whether lawmakers see the proposal as a needed ethics safeguard or as an unusual restriction on presidential and vice-presidential claims against the government.

Pass percentages are model estimates and may be inaccurate.