Democrats Aim to Prohibit Presidents from Pocketing Government Settlement Funds
On Wednesday, Democratic lawmakers will unveil a new bill aimed at preventing the president, vice president, and their families from receiving settlement payments from the government.
The proposed legislation, known as the "Ban Presidential Plunder of Taxpayer Funds Act," emerges in the wake of President Donald Trump's $10 billion lawsuit against the IRS and Treasury Department. This legal action stems from the unauthorized release of his tax records, along with those of his sons and his business, to various media outlets. Trump has pledged to donate any potential settlement funds to charity, yet critics argue that any compensation would ultimately be drawn from taxpayer money.
Earlier this year, Trump openly stated his intention to seek damages from the Justice Department, remarking, "I guess they owe me a lot of money."
The bill is being championed by prominent figures including Sen. Elizabeth Warren of Massachusetts, Senate Minority Leader Chuck Schumer of New York, Rep. Jamie Raskin of Maryland, and Rep. Dave Min of California.
According to details shared with the press, the legislation would prohibit not only the president and vice president but also their spouses, children, and any trusts or entities they control from receiving payments as part of settlement agreements. Such agreements are often reached to avoid lengthy court battles.
However, there are exceptions: presidents and vice presidents could still receive compensatory damages if an independent counsel is appointed to represent the federal entity involved in the lawsuit and if court proceedings are made public. Compensatory damages serve as restitution for losses incurred.
The proposed restrictions would extend to former presidents if their vice presidents ascend to the presidency. Under certain conditions, former leaders could collect damages, provided that no appointee of theirs is involved in the claim and that any settlement details are disclosed to Congress.
"While American families are getting flattened by skyrocketing costs, Donald Trump is trying to snatch up billions of taxpayer dollars to line his own pockets and settle personal scores," Warren stated. "My bill will close the loopholes that enable this apparent corruption and ban Trump — and all future Presidents and Vice Presidents — from abusing their power and stealing Americans’ hard-earned money."
In response, White House spokesperson Kush Desai suggested that Democrats should prioritize more pressing issues. "In between the SAVE America Act to secure our elections and the Great Healthcare Plan to reduce drug prices and insurance premiums, Democrats in Congress have plenty of other things they could be working on to actually help the American people," he remarked.
Similar legislative efforts have been made in the past. In February, Sen. Ron Wyden, D-Ore., proposed a bill that would impose a 100% tax on any damages received by a president or vice president from the federal government, effectively eliminating any financial gain from such settlements. However, that bill has yet to be voted on in the Senate.
