Justice Department Diverting Victims’ Settlement Payments to Radical Liberal Activists

- June 4, 2026
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Treasury Secretary Scott Bessent acknowledged Wednesday that he threatened to “kick ass” during a heated confrontation last year, while firmly denying reports that he threatened to punch the now-acting Director of National Intelligence “in the face.”

The unusual exchange emerged during a Senate Finance Committee hearing, where Sen. Thom Tillis (R-NC) pressed Bessent about reports surrounding a confrontation between the two Trump administration officials during the summer of 2025.

According to Bessent, one key detail in the widely circulated account was inaccurate.

While he denied threatening.

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Seijah Drake was born in Boston, MA, where she developed a penchant for writing early on and a passion for politics in college. After college she worked briefly for a conservative media in New York before relocating to the Greater D.C. Area to pursue a career in political marketing. She now resides in the free state of Florida.

The White House, Public domain, via Wikimedia Commons
3 minute read

A liberal slush fund from the days of the Obama administration has returned under the Biden White House.

First, some background: Under then-President Obama, the Justice Department rerouted victim settlement funds to far-left activist groups that had no connections to victims in government cases.

While the Cato Institute and The Wall Street Journal reported on the flagrant violation of the separation of powers, it received comparatively little coverage elsewhere.

Then-Attorney General Jeff Sessions ended the practice in 2017. Unsurprisingly, the method of settlement payments to third parties has reemerged.

Fortunately, conservatives in Congress aren’t complacent. Alabama Senator Tommy Tuberville and Texas Congressman Lance Gooden, in particular, have issued a clarion call to their fellow Republicans:

U.S. Senator Tommy Tuberville (R-AL) and U.S. Representative Lance Gooden (R-TX-05) led 33 colleagues in a bicameral letter to U.S. Attorney General Merrick Garland stating their opposition to the U.S. Department of Justice’s (DOJ) return to the Obama-era practice of directing legal settlements to partisan, non-victim organizations. Senate signatories of the letter include Senators Tom Cotton (R-AR), Thom Tillis (R-NC), Chuck Grassley (R-IA), Joni Ernst (R-IA), Kevin Cramer (R-ND), Mike Lee (R-UT), Bill Hagerty (R-TN), Steve Daines (R-MT), Rick Scott (R-FL), Mike Rounds (R-SD), Deb Fischer (R-NE), Marco Rubio (R-FL), Roger Marshall (R-KS), and Ted Cruz (R-TX).

“The Biden administration is attempting to take a page from the Obama playbook to funnel money to its political allies by requiring federal defendants to pay a portion of their settlement funds to outside activist groups. This corrupt practice is a prime example of executive overreach. It is Congress’s job to direct federal funds and federal bureaucrats should not be in the business of picking winners and losers.  Federal settlement funds should go to the victims first and then to the U.S. Treasury. I will continue to push for government accountability and transparency at all levels of the federal government,” said Senator Tuberville.

“President Biden knows Republicans are set to regain control of the House next year and is determined to circumvent the Constitutional role of Congress to fund his radical agenda,” said Representative Gooden. “Settlement agreement payments should go to the victims, not fund Democrats’ partisan pet projects.”

The letter is written in response to the public comment period for the DOJ’s interim final rule  published on May 10, 2022. The rule seeks to reverse regulations that protected victim compensation, restored confidence in the judicial process, and respected congressional spending power. If published as a final rule, this policy would mark the return of an Obama-era DOJ practice that allowed settling parties in a federal dispute to reduce their punishment by making “donations” to special interest groups of the DOJ’s choosing, cultivating an environment ripe for corruption and abuse.

Read the full text of the letter HERE

BACKGROUND: 

Senator Tuberville previously introduced the Stop Settlement Slush Funds Act to ensure when the federal government settles a lawsuit, settlement funds will go only to the victims, injured parties in the dispute, or the U.S. Treasury. The bill would prohibit settling parties in a federal dispute from reducing their punishments by making “donations” to outside organizations. Representative Gooden introduced companion legislation in the U.S. House of Representatives.

Watch Senator Tuberville speak about the Stop Settlement Slush Funds Act.

The opinions expressed in this article are those of the author and do not necessarily reflect the positions of American Liberty News.

Donny Ferguson is a professional fundraiser and organizational manager. Born and raised in Texas, he has lived in Washington, D.C. for 16 years. Ferguson also served as Senior Communications and Policy Adviser in the United States House of Representatives, operating one of Capitol Hill's most effective media operations.

Picture of Donny Ferguson

Donny Ferguson

Donny Ferguson is a professional fundraiser and organizational manager. Born and raised in Texas, he has lived in Washington, D.C. for 16 years. Ferguson also served as Senior Communications and Policy Adviser in the United States House of Representatives, operating one of Capitol Hill's most effective media operations.

13 Comments
    TruthBTold

    It’s all the same people, Biden-Harris or Obama are just the faces of the schemes.

    charles A wilkins

    MORE DEMOCRAT CORRUPTION? WTF DIRVERTING? Joe Biden President, loves this Country so much he does not want to see his fellow Americans hurting over high gasoline cost, high energy cost, shortages, have decided to take the risk of our Nations National Security and use our National Reserve oil to lower gas prices at the pump. Mr. President, Hunter is on the line, say what, will have to ship that oil to China instead, what about your promise to the American people. The world would like an answer to that question.

      Stace

      Biden is all about “Promises made Promises broken” except to the Radicals and he promises them “America Last” roll in the bad policies that are hurting Americans and Biden can care less. I can only imagine what he is promising Palestine/Iran and the Saudi’s ? I know this much he is handing over our hard earned tax dollars for a start!

    Tom Tucker

    If, in January, this entire administration is not impeached and removed from office, then it will be time for the civil war and the total extermination of liberalism, with extreme prejudice.

    C Mac

    In prior America that was called a shakedown

    Scott

    OMG! Just another way to misuse hard-earned taxpayer monies. Just FYI, with all the billionaires and large companies paying zero taxes, the IRS took the whopping sum of $2.00 from my IRA without informing me — for a tax liability that they had never notified me of. My financial institution was simply told to send it in. And yet we committed $200 billion to infrastructure in Europe? This is after dedicating $1.2 trillion to our infrastructure and only using 10% of it properly. The dems appear to be the dominant crime family in America.

      Beth

      And, not one penny, of taxpayer money, should ever be given to illegal immigrants.

    Stace

    “Ripe for corruption and Abuse” is the name of the Game for the Radical Elite socialist Democrat party! Obama could have been impeached at least 7 times in overreach executive orders if the Republicans had the backbone and guts to do it!

    Joe

    Any Republican who does not immediately voice support for slamming the door on something so blatantly illegal on it’s face needs to be replaced, recalled or impeached. Attorney General Garland should be impeached. He is not a law enforcer, he is a puppet and deserves to be disbarred and disdained by American citizens everywhere.

      Gerry

      Joe — you would have to replace at least 90% of the gop. They have proven time and time again — they have ZERO guts and will NOT go against the communist/democrat agenda.

    Gerry

    What did you expect from obama’s 3rd term.

Comments are closed.

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