Stop Settlement Slush Funds Act of 2016

This bill prohibits government officials from entering into or enforcing a settlement agreement resolving a civil action on behalf of the United States that provides for a payment to any person or entity other than the United States. The bill provides exceptions for payments that remedy actual harm (including to the environment) caused by the party making the payment or that constitute payment for services rendered in connection with the case.

Government officials or agents who violate this prohibition may be removed from office or required to forfeit to the government any money they hold for such purposes to which they may otherwise be entitled.