Dems hit back at Trump's bid to 'line his own pockets' with billions from government coffers
WASHINGTON, DC: Congressional Democrats are set to introduce legislation aimed at preventing sitting presidents, vice presidents, and their families from collecting financial settlements from the federal government.
The proposed measure, titled the ‘Ban Presidential Plunder of Taxpayer Funds Act’, is being led by Elizabeth Warren, Chuck Schumer, Jamie Raskin, and Dave Min.
The bill is designed to address what lawmakers describe as a gap in existing ethics and financial rules governing top executive officeholders, NBC News reported.
New bill triggered by Trump lawsuit
The legislation follows a high-profile lawsuit filed by President Donald Trump against the Internal Revenue Service and the Treasury Department, in which he is seeking $10 billion in damages over the leak of his tax records and those of his business and family.
Although Trump has said he would donate any settlement proceeds to charity, critics argue that any such payout would ultimately come from taxpayer funds, raising concerns about self-enrichment and abuse of office.
The president has also previously suggested he could seek damages from the Justice Department, remarking, “I guess they owe me a lot of money.”
Broad restrictions on officeholders and families
According to details of the bill, the restrictions would apply not only to the president and vice president but also to their spouses, children, and any trusts or entities they own or control.
The measure would prohibit these individuals and entities from receiving settlement payments in cases involving the federal government, agreements often reached to avoid lengthy court proceedings.
The legislation does allow for limited exceptions. Sitting presidents and vice presidents could still receive compensatory damages, but only under strict conditions.
These include the appointment of an independent counsel to represent the government entity involved and full transparency through public court proceedings.
Compensatory damages, typically awarded to cover verified losses, would remain permissible under such oversight.
Set of rules extend to former leaders
The proposed law would also extend certain restrictions to former presidents and vice presidents, particularly in cases where a vice president succeeds to the presidency.
However, former officeholders could still receive damages if specific safeguards are met, such as ensuring that no political appointees are involved in the claim and that all settlement details are disclosed publicly and reported to Congress.
Elizabeth Warren claims the bill aims to prevent 'corruption'
In a statement, Sen Elizabeth Warren sharply criticized Trump’s legal actions, framing the bill as a necessary step to protect public funds.
“While American families are getting flattened by skyrocketing costs, Donald Trump is trying to snatch up billions of taxpayer dollars to line his own pockets and settle personal scores,” she said.
“My bill will close the loopholes that enable this apparent corruption and ban Trump and all future presidents and vice presidents from abusing their power.”
Lawmakers have attempted to address similar concerns in the past. Earlier this year, Ron Wyden introduced a proposal to tax any settlement damages that would be received by a president or vice president from the federal government at 100%, effectively eliminating any financial gain.
