THOMPSON, WAYS & MEANS DEMOCRATS INTRODUCE BILL TO TAX PRESIDENT’S CORRUPT SLUSH FUND FOR JANUARY 6 RIOTERS

Washington, D.C. - Today, Rep. Mike Thompson (CA-04), Ranking Member of the House Ways and Means Subcommittee on Tax, announced legislation to prevent a sitting president from profiting from lawsuits against the United States government. The SLUSH FUND Act would tax the President's unethical $1.776 billion slush fund meant to benefit January 6th rioters and other MAGA enablers at 100 percent, rightfully returning taxpayers' money back to the people of the United States.

"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 6^th insurrectionists who attacked law enforcement and tried to overturn our democratic election. That's unacceptable," said Ways and Means Subcommittee on Tax Ranking Member Mike 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."

BACKGROUND

Thompson introduced the SLUSH Fund Act today in response to the news that President Trump settled his unethical lawsuit against the IRS for a $1.776 billion slush fund he plans to make available to January 6th rioters and other MAGA enablers.

The "Stop Letting United States Heads Funnel Unauthorized Nontransparent Dollars Act of 2026" (SLUSH FUND Act) would impose a 100 percent 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 percent 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 percent 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 Thompson, the SLUSH FUND Act is co-sponsored by 16 Ways and Means Committee Democrats: Rep. Lloyd Doggett (TX-37), Rep. John Larson (CT-01), Rep. Danny Davis (IL-07), Rep. Linda Sánchez (CA-38), Rep. Terri Sewell (AL-07), Rep. Susan DelBene (WA-01), Rep. Judy Chu (CA-28), Rep. Gwen Moore (WI-04), Rep. Brendan Boyle (PA-02), Rep. Don Beyer (VA-08), Rep. Dwight Evans (PA-03), Rep. Brad Schneider (IL-10), Rep. Jimmy Panetta (CA-19), Rep. Jimmy Gomez (CA-34), Rep. Steven Horsford (NV-04), Rep. Tom Suozzi (NY-03).

Read the text of the bill here.