The Obama administration funneled billions of dollars to activist organizations through a Department of Justice slush fund scheme, according to congressional investigators.
For example, in the FY16 Enacted Congressional Appropriation, Congress allotted $47 million for the HUD Housing Counseling, but the Citi and Bank of America settlements shipped in an additional $30 million in funding.
The Legal Services Corporation was allocated $385 million from Congress but is getting an additional $412 million in taxpayer dollars from the third-party settlement practice.
The recent Volkswagen settlement, which requires a $1.2 billion investment into zero emission technology, was not only twice denied by Congress but is now expected to receive four times the amount originally requested by the Obama administration.
A sample of the left-leaning organizations benefiting from the largesse include the National Council of La Raza, the National Community Reinvestment Coalition and the National Urban League.
“The protests are as organic as a plastic cup,” says Fitton. “There is a massive left-wing infrastructure in place trying to protect the monstrous government created by the Obama administration.”
Huckabee Rails Against DOJ ‘Slush Fund’: ‘Worse Than a Mafia Shakedown’
The House Judiciary Committee found that when the DOJ takes legal action against banks and businesses for various reasons, the defendants are often eager to settle.
The money from those settlements is often divided between affected customers, the government, or it can be donated to what Republicans call a “slush fund” at the DOJ.
Under the Obama administration, recipients of the “slush fund” money included La Raza and the National Urban League, two decidedly liberal entities, FoxNews.com reported.
“Somebody ought to go to jail for this,” he said, calling the fund “a case where liberals have played Robin Hood.”
Justice’s Liberal Slush Fund
Legal settlements are being used to funnel millions to left-wing activists like La Raza.
Republican lawmakers have reintroduced a bill that would prohibit the U.S. Department of Justice from keeping parts of fines and penalties and prevent federal agencies from requiring defendants to donate money to outside groups as part of settlement agreements.
Last week, House Judiciary Chairman Bob Goodlatte, R-VA, submitted the Stop Settlements Slush Funds Act of 2017, or H.R. 522. Goodlatte’s committee, sometimes referred to as the lawyer for the House, has jurisdiction over matters relating to the administration of justice in federal courts, administrative bodies, and law enforcement agencies.
Slush Fund Bill
Department of Justice officials diverted millions of dollars slated for victims of the 2008 housing meltdown to politically favored third parties, including “left-wing radical groups,” according to the chairman of a House of Representatives oversight subcommittee.
La Raza is flush with money, reporting in 2013 to the IRS assets of $55 million. Janet Murguia, the group’s president and CEO was paid $417,000 that year, according to the group’s IRS tax return. Even so, La Raza is slated to receive at least $1 million from the Bank of America settlement and $500,000 from the Citigroup settlement.
The Chicano Student Movement of Aztlan (MEChA) is also slated to receive $50,000 from the Bank of America settlement, according to Cause of Action.