On Wednesday, the Department of Justice, headed up by Attorney General Jeff Sessions, announced that it will end an Obama-era practice that allows prosecutors to strike settlement agreements with big companies directing them to make payouts to outside groups.
In essence, “slush funds” that aid liberal interest groups are going to be no more.
Fox News reports:
In a memo sent to 94 U.S. attorneys’ offices early Wednesday, Attorney General Jeff Sessions said he would end the practice that allowed companies to meet settlement burdens by giving money to groups that were neither victims nor parties to the case.
Sessions said the money should, instead, go to the Treasury Department or victims.
“When the federal government settles a case against a corporate wrongdoer, any settlement funds should go first to the victims and then to the American people—not to bankroll third-party special interest groups or the political friends of whoever is in power,” Sessions said in a statement.
Conservatives have long fought the policy introduced under the Obama administration. Earlier this year, Republican lawmakers introduced legislation that would prohibit the Department of Justice from requiring defendants to donate money to outside groups, after concerns that the settlements bypass congressional appropriations processes.
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