Obama's 'slush fund' settlements may survive under Trump

The Justice Department's practice of diverting funds from major settlements to third-party groups, scorned as a "slush fund" by critics of the Obama-era practice, may survive under the new White House.

Several lawmakers have made efforts to prevent the fund diversion. Rep. Bob Goodlatte, R-Va., and Sen. James Lankford, R-Utah, introduced legislation dubbed the Stop Settlements Slush Funds Act in their respective chambers. But neither bill appears to have the backing of the administration, as it has not weighed in on the efforts.

The Justice Department is refusing to say whether it plans to divert any funds in any future settlements it is pursuing or if it instead plans to formally prohibit the practice. "DOJ declines to comment," spokesman Mark Abueg told the Washington Examiner.

"We've made several overtures to the DOJ, but gotten no response yet on the issue," said a congressional source, who requested anonymity.

That has critics of the settlement practice scratching their heads and wondering if, for all of its deregulatory zeal, the administration might leave that part of former President Barack Obama's legacy in place.