Stop Settlement Slush Funds Act of 2023

S 225, the Stop Settlement Slush Funds Act of 2023, prohibits U.S. federal agencies from including settlement agreements that direct payments to third parties (like charities or community groups) unless the payment directly reimburses harm caused by the settling party or covers services related to the case. The bill requires agencies to report annually to Congress on settlements involving such third-party payments and mandates annual audits by agency Inspectors General for violations. It applies to all federal agencies and settlement agreements entered into after the law's enactment, with reporting requirements starting one year post-enactment and ending after seven years. The law does not create new funding for these reporting or audit tasks.