July 1, 1956legislationappropriations lawfederal litigationgovernment accountabilitycongressional power of the purseappropriationsfederal courtscongressional power
Congress creates federal Judgment Fund as permanent appropriation to pay court judgments against the United States
Congress enacted 31 U.S.C. § 1304 in 1956, creating a permanent, indefinite Treasury appropriation to automatically pay court-ordered damages against the United States without requiring a separate congressional vote for each case. Before 1956, every judgment against the federal government required specific legislation to fund payment, consuming significant congressional time as federal litigation volume grew. In 1961, Congress expanded the fund to also cover compromise settlements of actual or imminent litigation authorized by the Attorney General.