The Justice Department can again settle cases by paying non-profits
What happened
The Justice Department has reversed a rule that stopped it from settling cases by directing payments to non-governmental groups. This means the department can now use these payments as part of legal settlements, as it did before 2022.
Why it matters
For several years, the Justice Department could not direct settlement money to non-profits, even if those groups worked on issues related to the case. This rule change means the department can once again use these payments to resolve disputes. It gives prosecutors more flexibility in how they structure agreements, potentially allowing for broader impacts beyond direct financial penalties.
The signal
Watch for an increase in Justice Department settlement agreements that include payments to non-governmental organizations, and whether these payments target specific types of advocacy or community groups.