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Goodlatte Aims to Undo Obama-Era Policy

AP Photo / Alex Brandon, File

President Trump isn’t the only person in Washington trying to undo the Obama legacy. One powerful member of the Virginia Congressional delegation is also trying to take action against what he sees as a problem created in the last administration.

During the Obama years, the Department of Justice had a controversial practice of forcing corporate wrongdoers to make donations to third party groups as part of settlement agreements. After the mortgage meltdown, for example, banks were required to donate to Habitat for Humanity and the Urban League.

Republican Congressman Bob Goodlatte of Roanoke says that’s a slush fund.

“The donation beneficiaries were Obama administration allies. These include the Neighborhood Corporation of America, whose director calls himself a bank terrorist.”

As a response, Goodlatte introduced a bill that was approved by the House Tuesday. It forbids the Justice Department from requiring donations as part of settlement agreements. That’s even though Attorney General Jeff Sessions has already announced he won’t require these kinds of donations.

Democratic Congressman David Cicilline of Rhode Island recalls how this practice helped after the Deepwater Horizon disaster.

“As part of that settlement there was state-based cleanup, there was funding for the National Fish and Wildlife Foundation for remediation. Things that were directly responsive to the harm caused, which you couldn’t quantify to an individual person.”

Democrats say the bill will die in the Senate, and a similar bill from Goodlatte went nowhere last year. But Republicans say they’re hopeful this one will have more luck.

This report, provided by Virginia Public Radio, was made possible with support from the Virginia Education Association

Michael Pope is an author and journalist who lives in Old Town Alexandria.
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