Corruption Clawback Act

The Corruption Clawback Act proposes to establish a formal legal mechanism for the federal government to reclaim taxpayer funds paid to a sitting president through legal settlements or administrative awards. The bill would mandate that the Attorney General initiate civil actions in the U.S. Court of Federal Claims to recover "covered payments"—defined as monetary settlements or judgments paid from the Treasury that would not have been granted if the recipient were not the president. This specifically targets payments related to claims filed or settlements reached on or after January 20, 2025.

Under this legislation, courts would be required to evaluate several factors to determine if a payment was improper. These include whether the officials who authorized the payout were presidential appointees or former personal counsel, whether the award amount significantly exceeds what a private citizen would receive for a similar claim, and whether standard legal defenses were bypassed during negotiations. If the government successfully recovers these funds, they would be directed to the Department of Justice’s Public Integrity Section.