SLUSH FUND Act of 2026

The SLUSH FUND Act of 226 introduces a new federal tax on settlement payments made to former U.S. presidents, their immediate families, and entities they control. Under this legislation, any money received by these individuals from civil lawsuits against the government would be taxed at a rate of 100 percent, effectively doubling the cost to the recipient. The bill also mandates that financial institutions report these payments to the IRS and publicly disclose the details of such transactions. Failure to pay the tax or file the required reports would result in significant penalties, including a 50 percent surcharge on the unpaid tax and a flat $10,000 fee per instance of non-compliance. These rules would apply to payments received on or after May 20, 2026.