Prohibiting Taxpayer Funded Settlements for Illegal Immigrants Act This bill prohibits using federal funds to make settlement payments to compensate any individuals for being separated from family members while detained by U.S. Customs and Border Protection if the detention was (1) a result of the individual improperly entering (or attempting to improperly enter) the United States, and (2) in accordance with a Department of Justice memorandum that adopted a zero-tolerance policy for such improper entry into the United States.