Settlements for Company Sins Can No Longer Aid Other Projects, Sessions Says

“It has come to my attention that certain previous settlement agreements involving the department included payments to various nongovernmental, third-party organizations as a condition of settlement with the United States,” Mr. Sessions said. “These third-party organizations were neither victims nor parties to the lawsuits. The department will no longer engage in this practice.”

The policy applies only to future cases.

A bill with similar intent, sponsored by Robert W. Goodlatte, Republican of Virginia, passed a House committee in February. It would prevent the government from using settlement money from civil cases for purposes other than direct victim compensation or remediation, like cleanups of environmental disasters. A version of the bill passed the House last year, but died in the Senate.

This year, groups including the Competitive Enterprise Institute and Americans for Prosperity, both closely linked to the libertarian billionaire brothers Charles G. and David H. Koch, wrote to President Trump criticizing a recent settlement between the Obama administration’s Justice Department and Volkswagen.

The $14.7 billion settlement, over Volkswagen’s use of “defeat devices” to cheat emissions rules, included almost $2 billion that Volkswagen was required to invest in electric vehicle charging stations and other clean vehicle technology. The settlement also directed Volkswagen to pay $2.7 billion to programs that would reduce pollution from diesel cars and trucks. Volkswagen had been accused of manufacturing cars that spewed harmful nitrogen oxides at up to 40 times the levels allowed under the Clean Air Act.

Some of the money was in effect going to pay for clean air initiatives championed by President Barack Obama, the conservative groups said, initiatives that Congress twice refused to fund.

“Having been twice spurned by lawmakers, the Obama administration leveraged the Volkswagen settlement,” the…

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