President Obama would veto a Republican bill aimed at blocking Democratic-backed groups from receiving the proceeds of Department of Justice settlements, according to the Office of Management and Budget.
In a statement, OMB stated the House-passed H.R. 5063 is “unnecessary and would harm the public interest” because “this legislation would interfere with the just and fair settlement of cases.”
Rep. Bob Goodlatte, R-Va., and 32 co-sponsors have argued the bill is needed because without it, Justice Department officials can agree to deals that let companies spend less money on settlements if they essentially donate money to certain groups, often affiliated with Democrats. The lawmaker drafted the legislation after Bank of America was able to wipe $225 million off its $16.6 billion settlement with the Justice Department by donating $100 million to liberal-affiliated nonprofits and legal groups.
But OMB said there is no problem to fix.
“This legislation seeks to address a problem that does not exist – the Federal Government does not create or use ‘slush funds.’ When the federal government settles a case with those who violate the law, it seeks to hold the defendants accountable and appropriately remedy the harms they have caused and to prevent the recurrence of those harms,” OMB wrote.
“When DOJ recovers money from parties who have broken the law, those funds should be going to victims, or to the Treasury so that Congress can ensure accountability for how the funds are spent,” Goodlatte said in May. “These funds should not be funneled to the president’s pet liberal groups.”
