H.R. 788 would prohibit government agencies from entering or enforcing any civil settlement agreement that requires the other party to the settlement (such as a corporation) to make a donation to a third party. That prohibition would not include payments to provide restitution or other remedies associated with the harm caused by the responsible party. In recent settlements with federal agencies, large corporations have sometimes been required to donate funds to nonprofit institutions as a part of their restitution in lieu of paying those amounts to the government in the form of a penalty. The prohibition in H.R. 788 would sunset seven years after enactment.
