A coalition of prominent U.S. Democrats is advancing legislation aimed at closing what they argue is a significant loophole in presidential accountability — the ability for sitting and former presidents to collect settlement payments from the federal government.
The proposed "Ban Presidential Plunder of Taxpayer Funds Act" has drawn particular attention in the wake of President Donald Trump's lawsuit against the IRS and Treasury Department, where he is seeking $10 billion in damages related to the disclosure of his tax records and those of his sons and company to news organizations. Though Trump stated he would donate any recovered funds to charity, critics contend that settlements derived from taxpayer assets represent an improper windfall for presidents.
Who's Behind the Legislation
Senator Elizabeth Warren of Massachusetts, Senate Minority Leader Chuck Schumer of New York, Representative Jamie Raskin of Maryland, and Representative David Min of California are introducing the measure across both chambers of 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 said in a statement. "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."
What the Bill Would Actually Do
The proposed legislation would prohibit the president, vice president, their spouses, children, and any trusts or entities they own or control from collecting settlement payments reached between themselves and the federal government.
The bill does carve out limited exceptions. Presidents and vice presidents could collect compensatory damages — awards meant to provide restitution for actual losses — if a court appoints an independent counsel to represent the federal entity and makes proceedings public.
For former presidents and former vice presidents, the restrictions would apply only if their vice presidents succeeded them in office. However, they could collect damages under narrower circumstances, including requirements that no presidential appointees are involved in the claim and that any settlement be made fully public and disclosed to Congress.
Part of a Broader Effort
This isn't the first attempt by Congress to address the issue. In February, Senator Ron Wyden, a Democrat from Oregon, introduced separate legislation that would impose a 100 per cent tax on damages collected by any president or vice president from the federal government — effectively eliminating any financial benefit from such settlements.
That bill has not yet received a Senate vote.
Trump previously acknowledged pursuing damages from the Justice Department, saying in public remarks, "I guess they owe me a lot of money."
This article is based on reporting from NBC News.