Rep. Panetta, Ways and Means Committee Members Introduce Bill to Tax President’s $1.8 Billion Slush Fund

Washington, D.C. - United States Representative Jimmy Panetta (CA-19) joined Rep. Mike Thompson (CA-04) and members of the House Ways and Means Committee to introduce legislation to prevent a sitting president from profiting from lawsuits against the United States government. The Stop Letting United States Heads Funnel Unauthorized Nontransparent Dollars Act of 2026 (SLUSH FUND Act) would tax the President's unethical $1.776 billion slush fund meant to benefit January 6 rioters and other allies of the President at 100%, rightfully returning taxpayers' money back to the people of the United States.

"As the war in Iran and harmful tariff policies continue to raise prices on food, fuel, fertilizer, and other goods, the President also wants to use taxpayer dollars to award his cronies and allies, including January 6 insurrectionists, through a $1.8 billion slush fund. This Administration's senseless so-called 'Anti-Weaponization Fund' is yet another example of the President's unacceptable and corrupt abuse of taxpayer funds for political gain," said Rep. Panetta. "Our legislation would ensure any sitting president who sues the U.S. government faces an 100% tax on any payout that they receive from a trial or settlement so that innocent taxpayers don't get stuck footing the bill."

"This president continues to use the Office of the Presidency for personal gain, including by suing the federal government to line the pockets of January 6th insurrectionists who attacked law enforcement and tried to overturn our democratic election. That's unacceptable," said Ways and Means Subcommittee on Tax Ranking Member Thompson. "My legislation ensures if a sitting president sues our government while in office, they get taxed 100 percent on any money paid through a trial or settlement."

"Donald Trump has turned the presidency into a personal profit center using taxpayer dollars to reward the same extremists who attacked our democracy on January 6th, and enrich his family empire, all while Republicans look the other way," said Ways and Means Committee Ranking Member Richard E. Neal. "If the President wants to run a corrupt slush fund for insurrectionists and political cronies, the American people shouldn't be forced to bankroll it. That's why I'm grateful to Tax Subcommittee Ranking Member Mike Thompson for stepping in and leading legislation that makes clear: no president is above the law, and no taxpayer should have to subsidize this kind of brazen self-dealing."

Rep. Panetta and the Ways and Means Committee Members introduced the SLUSH FUND Act in response to the news that President Trump settled his reckless lawsuit against the IRS for a $1.776 billion slush fund he plans to make available to January 6 rioters and other MAGA enablers.

The SLUSH FUND Act would impose a 100% excise tax on any settlement payment received from a fund whose assets are derived from a civil suit initiated by a President against the United States. The legislation also imposes an additional 50% penalty on any willful attempt to avoid or evade the tax. To ensure compliance and transparency, the bill requires information reporting on payments from the fund to both the individual receiving the payment and the Secretary of the Treasury, including notice that such payments are subject to the 100% excise tax.

Failure to file the required information reports would result in a $10,000 penalty per failure. The bill further requires the Secretary of the Treasury to make these information reports publicly available. The legislation would take effect on May 20, 2026.

In addition to Reps. Panetta and Thompson, the SLUSH FUND Act is cosponsored by 15 other House Ways and Means Committee Members including, Reps. Lloyd Doggett (TX-37), John Larson (CT-01), Danny Davis (IL-07), Linda Sánchez (CA-38), Terri Sewell (AL-07), Susan DelBene (WA-01), Judy Chu (CA-28), Gwen Moore (WI-04), Brendan Boyle (PA-02), Don Beyer (VA-08), Dwight Evans (PA-03), Brad Schneider (IL-10), Jimmy Gomez (CA-34), Steven Horsford (NV-04), and Tom Suozzi (NY-03).

Full text of the bill is available here.

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