This bill, known as the "No Taxpayer-Funded Settlement Slush Funds Act of 2026," specifically prohibits the use of Federal funds to create or make payments to a compensation fund established by a May 18, 2026 settlement agreement in the case of *Trump, et al. v. IRS, et al.* This provision targets a particular civil action before the U.S. District Court for the Southern District of Florida. The legislation further amends section 1304 of title 31, United States Code, to impose broad restrictions on compromise settlements or awards. It prohibits payments to the President or Vice President , their immediate family members, and certain presidentially-owned entities . Additionally, it bars payments to cabinet members, high-level Executive Office of the President employees (GS-15 or higher), and political appointees, including those who previously held such positions during the appointing President's term. The bill also restricts payments for claims alleging harm from investigations or prosecutions related to the January 6, 2021 attack on the U.S. Capitol, foreign interference in the 2016 presidential election , or civil actions against the United States that were dismissed with prejudice. It establishes new reporting requirements for settlements over $100,000 and mandates prior notice and a 120-day waiting period for payments exceeding $250,000 or those based on imminent litigation. The Attorney General is authorized to seek repayment for any settlements made in violation of these prohibitions, which are made retroactive to January 20, 2025, though Congress retains the power to appropriate funds for prohibited payments on an individual basis.