The House of Representatives gave Barack Obama some bad news on Wednesday when they passed a legislation that will block him from funding favored political organizations through penalties levied against banks.
Western Journalism reported that the final tally of votes for the “Stop Settlement Slush Funds Act of 2016” (H.R. 5063) was 241-174, as five Democrats joined with all the Republicans present to approve the law. This came after it was revealed that the Obama administration has been employing extra-constitutional ways to get around Congress and fund many of its favorite organizations, some of which are engaged in political activities.
Obama’s Justice Department forced multi-billion settlements with most of the major banks in the country over mortgage practices before offering them the option of paying back some or all of the amounts owed on a better than a two-for-one dollar basis by “donating” to approved organizations, instead of remitting all the money to the U.S. Treasury.
The Wall Street Journal reported that Bank of America donated “$1.15 million to the National Urban League, which counts as if it were $2.6 million against the bank’s settlement. Similarly, $1.5 million to La Raza takes $3.5 million off the total amount of ‘consumer relief’ owed by the bank.”
“Many of these groups engage in voter registration, community organizing and lobbying on liberal policy priorities at every level of government,” the Journal said. “They also provide grants to other liberal groups not eligible for payouts under the settlements. Thanks to the Obama administration, and the fungibility of money, the settlements’ beneficiaries can now devote hundreds of thousands or even millions of dollars to these activities.”
Back in April, House Judiciary Chairman Rep. Bob Goodlatte, R-Va., introduced the Stop Settlement Slush Funds Act, which makes it illegal for government officials from enforcing settlements that funnel money to third parties.
“Whether you are a Republican or a Democrat, the Constitution is clear: Congress shall have the power to appropriate,” Goodlatte said in a House Judiciary Committee press release on Wednesday after the bill was passed. “The practices discovered within the DOJ must be stopped. The passage of this bill by the House ensures the recovered funds are used to benefit direct victims and not special interests, and brings accountability to the Executive Branch as a whole.”
The House Judiciary stated that, “the DOJ has used mandatory donations to direct as much as $880 million dollars to activist groups.”
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