Corrupt: DOJ Set to Reinstate Obama-Era Slush Fund for Liberal Groups Thanks to Biden

In one of his first corrupt acts upon assuming the Presidency, Joe Biden has directed the DOJ to reinstate the Obama-Era Slush Funds for liberal groups. The slush funds were so unbelievably corrupt and degenerate that even the Wallstreet Journal‘s editorial board cheered when Attorney General Sessions ended the practice under President Trump six months into his Presidency.

In September, House Democrats refusing to work on a COVID19 stimulus instead directed their attention to a SNAP, EBT slush fund instead, so Biden will likely find support for this action in the Democrat controlled Congress.

The Slush Fund Explained

The WSJ Editorial explained the convoluted practice of redirecting lawsuit awards to unrelated special interest groups,

“After the GOP took the House and tried to cut spending for liberal interest groups, the Obama Justice Department began to force corporate defendants to allocate a chunk of their financial penalties to those same groups.

Banks were made to fund left-wing activists such as NeighborWorks—though these groups were neither victims nor parties to lawsuits. In 2015 JP Morgan was required to pay $7.5 million to the American Bankruptcy Institute’s endowment for financial education. In 2016 Volkswagen was required to invest $2 billion in zero-emissions technology and promote zero-emissions cars. Government enforcement became an income redistribution mechanism without having to go through Congress.”

The GOP Controlled Congress Failed to Act in 2017

After the Trump administration put an end to these payments in June 2017 through executive action, Congressman Bob Goodlatte (R-VA) presented the Stop Settlement Slush Funds Act of 2017 as a more permanent solution which passed the Republican-controlled House only to languish in Senate committees for four years, untouched.

“Congress must permanently end the abuses Obama’s Justice Department exploited to use settlements to funnel money to their liberal friends,” then-Rep. Bob Goodlatte, R-Va., said in 2017.

To date, no further action has been taken against this kind of grifting. And now the door is open for the Biden-Harris Administration to resume the despicably crooked practice of paying off their liberal donor friends with funds ripped away from corporations by the courts.

Former-Attorney General Sessions said in 2017 “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,”. As the Democrats reclaim power, their friends are already benefiting at the expense of the American people.


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