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Today, U.S. Representatives Matt Cartwright (D-PA) and Bill Posey (R-FL) re-introduced legislation to make federal agency settlements more transparent. The bipartisan Truth in Settlements Act would require federal agencies to publicly disclose the terms of non-confidential settlements obtained from offenders. U.S. Senators Elizabeth Warren (D-MA) and James Lankford (R-OK) introduced companion legislation in the Senate.

This legislation would require federal agencies to disclose whether any portion of a non-confidential settlement is potentially tax deductible and post information about these settlements on their websites.  Additionally, federal agencies would be required to provide an explanation if a settlement is deemed confidential.

“This bill is a commonsense measure to increase settlement transparency and accountability,” said Rep. Cartwright. “Taxpayers deserve to know key terms of these settlement agreements. If an agency reaches a settlement with an offender, then that agency must be willing to disclose the terms of the agreement or provide a good reason for not doing so.” 

“When the law is broken and federal agencies decide to settle cases and impose massive fines, the public has a right to know why and what the details of such settlement agreements are,” Rep. Posey said. “This legislation will add more sunshine to the process and lead to more accountability for wrong doing in both the private and public sectors.”

Federal agencies often tout the topline amount of settlements obtained from offenders.  All too often, this value is misleading because tax deductions built into the settlement reduce the settlement’s true value.  Worse, agencies can deem settlements confidential without explanation, preventing public scrutiny altogether.

“Government accountability requires transparency, and that's what this bipartisan bill provides,” Sen. Warren said. “The Truth in Settlements Act will shut down backroom deal-making by shining a light on federal agency settlements with lawbreaking companies. More transparency means Congress, citizens, and watchdog groups can better hold regulatory agencies accountable for enforcing laws so that everyone - even corporate CEOs - are equal under the law.”