Attorney General Jeff Sessions cuts off funds to community activist groups.
The political left is great at using other people’s money to fund progressive activism and the Department of Justice under former President Obama steered billions to left-leaning non-profit organizations.
Unknown to most Americans, the Obama administration set up a system where companies agreed to send money to non-profit groups as part of settling federal lawsuits.
The Washington Post reports:
Attorney General Jeff Sessions is reversing an Obama administration practice that encouraged and sometimes required banks and other companies to donate large amounts of money to outside groups as part of settlement agreements with the federal government.
In the Obama administration, the Justice Department negotiated settlements, especially with large banks in connection with the residential mortgage-backed securities crisis, that required the settling parties to pay funds to third-party community organizations, such as the National Council of La Raza, Habitat for Humanity and the National Urban League.
“These third-party organizations were neither victims nor parties to the lawsuits,” Sessions said in a memo sent Wednesday to senior Justice Department officials and U.S. attorney’s offices. Sessions said that, effective immediately, settlement payments to nongovernmental third parties, such as advocacy or housing groups, are prohibited.
Under Obama’s Justice Department, billions of dollars of settlement money went to non-profit organizations and not to the U.S. Treasury.
It’s great Sessions put a stop to this outrageous practice and these community groups will have to fundraise like other non-profit organizations.