What does Preamble of SLUSH FUND Act of 2026 do?

This bill proposes to amend the Internal Revenue Code of 1986. The amendment aims to impose a tax on specified settlement fund payments. The bill is referred to the Committee on Ways and Means.

What does SHORT TITLE. of SLUSH FUND Act of 2026 do?

This bill is formally titled the 'Stop Letting United States Heads Funnel Unauthorized Nontransparent Dollars Act of 2026' or the 'SLUSH FUND Act of 2026'.

What does IMPOSITION OF TAX ON SPECIFIED SETTLEMENT FUND PAYMENTS. of SLUSH FUND Act of 2026 do?

This section amends the Internal Revenue Code of 1986 by adding Chapter 50B to Subtitle D. It imposes a 100 percent tax on 'specified settlement fund payments' received by taxpayers. A 'specified settlement fund payment' is defined as any amount received from a fund derived from a civil action against the United States by a 'specified person'. A 'specified person' includes former Presidents of the United States, their family members, and individuals controlled by them. For purposes of subtitle F, the tax imposed by this section is treated as a tax imposed by subtitle A. Specified settlement fund payments are excluded from gross income. Section 275(a)(6) of the Code is amended to include reference to Chapter 50B. A penalty of 50 percent of the tax is imposed for willfully failing to pay the tax or attempting to evade it. The amendments generally apply to amounts received on or after May 20, 2026.

What does RETURNS RELATING TO SPECIFIED SETTLEMENT FUND PAYMENTS. of SLUSH FUND Act of 2026 do?

This section amends the Internal Revenue Code of 1986 to establish reporting requirements for specified settlement fund payments. Trustees, administrators, or other fiduciaries making these payments must file a return with the Secretary, detailing the aggregate amount paid to each taxpayer and the taxpayer's name and address. Each taxpayer receiving a specified settlement fund payment is entitled to a written statement identifying the fiduciary, the payment amount, and notification that the payments are subject to tax under section 5000E(a). The Secretary is required to publicly disclose these returns within one month of receipt. Failure to file the required return may result in a penalty of $10,000 per failure. The amendments generally apply to amounts paid on or after May 20, 2026.

Back to bills

SLUSH FUND Act of 2026

Last updated: 5/19/2026 · Introduced: 5/19/2026

Author: Mike Thompson (D-CA)

TL;DR (AI)

This bill imposes a 100% tax on payments received from settlement funds derived from civil actions against the United States by former Presidents, their family members, or related individuals.
Fiduciaries distributing these payments must report detailed information about each taxpayer and the payment amount to the Secretary of the Treasury, with public disclosure required.
Taxpayers receiving these payments will receive a written statement detailing the payment and notifying them of the applicable tax.

119th Congressin committeeS. 4616(In Committee)Official page

Verified Votes

No verified votes yet.

Community Votes

No community votes yet. Be the first!

Voting as guest · Sign in for verified votes

Other Sections

Includes provisions on preamble, short title., and 2 more.

4 sections

Click "Show details" to explore individual sections. Use the community vote above or visit All Sections to vote per section.

Read official text

Want the full experience?

Create a free account to cast verified votes on each section, get a personalized summary, and track your voting history.

Create Free Account