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Cost of Police Misconduct Act of 2026 requires nationwide reporting on judgments and settlements

Creates a DOJ-managed public database and reporting regime that forces federal, Byrne JAG-funded state and local agencies to disclose civil judgments, settlements, payment sources, and related data.

The Brief

The bill mandates standardized reporting to the Attorney General by every federal law enforcement agency and by states and localities that receive Byrne JAG grants. Reports must enumerate judgments and settlements arising from alleged officer misconduct and supply demographic, incident-type, personnel, and financial details, including whether payments came from the Judgment Fund, agency budgets, insurance, bonds, or risk pools.

The Department of Justice must publish a searchable public database within a year, and the Comptroller General will study multi-year trends and drivers of payouts. Noncompliant Byrne JAG recipients face up to a 10% funding reduction; the DOJ and GAO reports are intended to supply best practices and identify where agencies should change policies or risk management to reduce future liability.

At a Glance

What It Does

Requires federal law enforcement agencies and Byrne JAG-funded state/local governments to collect and annually report detailed information about civil judgments and settlements tied to alleged officer misconduct, and directs the Attorney General to publish a public, searchable database and to produce annual reports.

Who It Affects

All named federal law enforcement agencies, any state or local government that receives Byrne JAG grant funds, professional law enforcement associations consulted for best practices, and insurers or municipal risk pools that pay misconduct claims.

Why It Matters

This creates the first consistent, nationwide dataset tying misconduct allegations to financial outcomes and payment sources, enabling comparisons across jurisdictions and informing policy and budget decisions at federal, state, and local levels.

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What This Bill Actually Does

The bill establishes a two-track reporting regime. For the federal track, the Attorney General first identifies every federal law enforcement agency within 90 days; those agencies must begin collecting data on judgments and settlements 120 days after enactment and then report annually.

For the state and local track, the Attorney General must notify all Byrne JAG grant recipients within 30 days; recipients that accept Byrne funds must collect the same sorts of data and submit annual reports or risk reductions in future Byrne JAG or COPS-on-the-Beat allocations.

Reports must move beyond headline counts. Agencies must supply demographics of officers and civilians when known, the years of alleged misconduct and of reporting, granular allegation categories (e.g., body-camera violations, types of force, wrongful death), personnel actions (resignations, terminations, demotions), and the exact amounts paid.

Crucially, the statute requires disclosure of the payment source—Judgment Fund, agency appropriations, insurance premiums, bonds (including future costs), central risk pools, or other sources—so stakeholders can see who ultimately bears the financial burden.The Department of Justice must publish a public, searchable database of reported data within one year, updated annually, while respecting applicable confidentiality and Privacy Act limits. The Attorney General will also package annual DOJ reports with recommended use-of-force practices and best-practice guidance developed in consultation with law enforcement groups and civil-rights organizations.

Separately, after two full years of data, GAO will analyze causes, spending patterns by jurisdiction and level of government, and system-level recommendations; GAO’s report to Congress is due within 120 days after the end of year three.Operational requirements and built-in flexibilities include 60-day annual reporting deadlines with single 60-day extensions for entities making good-faith efforts, initial reports that may include historical data if already available, and a DOJ verification step using open-source sources (newspapers, court records) for state and local submissions. The statute expressly preserves Privacy Act constraints, and the public database must omit personally identifiable information about officers.

The Five Things You Need to Know

1

Federal agencies must be identified by the Attorney General within 90 days and begin collecting and reporting judgments/settlements 120 days after enactment.

2

Reported data must include demographics, incident year and report year, allegation type (e.g.

3

body-cam violations, use of force), personnel actions, the exact payout amount, and the payment source (including Judgment Fund, agency budget, insurance, bonds, or risk pools).

4

States and localities that receive Byrne JAG funding must report similar data or face up to a 10% reduction in Byrne JAG and/or COPS-on-the-Beat funds for the fiscal year of noncompliance or the next fiscal year.

5

The Attorney General must create a public, searchable DOJ database within one year (updated annually) that excludes officer PII, and the GAO must deliver a multi-year study and report to Congress after two full years of data collection. , State/local reports must disclose insurance premiums, bond amounts and total future bond costs (interest/fees), and contributions from central risk-management funds or pools toward settlements.

Section-by-Section Breakdown

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Section 2(b)

Agency identification and publication

This provision tasks the Attorney General with cataloging all federal law enforcement agencies within 90 days and publishing that list within 120 days; DOJ must refresh the list annually. Practically, the list creates the scope of federal reporters and gives states and localities a clear model for which organizational units count as law enforcement agencies for reporting purposes.

Section 2(c)

Federal data collection and reporting requirements

Federal agencies must start collecting specified fields on judgments and settlements 120 days after enactment and file annual reports to DOJ within 60 days after each year-end (with a possible 60-day extension). The data fields are prescriptive: demographics, incident and report years, allegation categories, personnel actions, payout amounts, and payment sources (explicitly including the Treasury’s Judgment Fund). Agencies must include historical data in their first report if collection already covered prior periods.

Section 2(d)

State and local reporting tied to Byrne JAG grants; disclosure details and penalties

Any state or locality that receives Byrne JAG funds must collect and submit the same categories of data for each of their law enforcement agencies. The Attorney General must notify grantees within 30 days. Noncompliance can trigger up to a 10% cut in Byrne JAG and/or COPS-on-the-Beat funding for the current or following fiscal year, with reallocated funds distributed to compliant jurisdictions. The section also forces granular transparency on how settlements are paid—general operating budgets, agency budgets, insurance, bonds (with future cost disclosure), and central risk pools must be itemized.

2 more sections
Section 2(e)

GAO study, DOJ reporting, and public database

After two full years of collected data, GAO must study reporting coverage, root causes of payouts, spending disaggregated by jurisdiction, and correlations between agency practices and liability; GAO’s public report to the judiciary committees is due within 120 days after year three. Separately, DOJ must publish an annual public report with best-practice recommendations and build a public, searchable database within one year that DOJ updates annually; however, DOJ must exclude officer PII and remain subject to the Privacy Act.

Section 2(f)

Privacy Act preserved

The bill explicitly states it does not override section 552a of title 5 (the Privacy Act of 1974). That limits publication and data release of personally identifiable information and requires DOJ to balance transparency against statutory privacy protections when constructing the public database.

At scale

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Who Benefits and Who Bears the Cost

Every bill creates winners and losers. Here's who stands to gain and who bears the cost.

Who Benefits

  • Civil-rights organizations — gain a standardized national dataset to identify patterns, target advocacy, and support litigation strategies by linking allegations to financial outcomes and payment sources.
  • Municipal budget officers and state finance officials — receive clearer visibility into contingent liabilities from misconduct payouts, enabling more accurate budgeting and risk-management decisions (insurance vs. self-insurance vs. bonds).
  • Congress and oversight bodies — get empirical evidence to assess patterns of misconduct, identify high-cost jurisdictions, and design targeted reforms or conditional funding mechanisms.

Who Bears the Cost

  • Byrne JAG-funded state and local governments — bear compliance burdens for new data collection systems and potential grant reductions (up to 10%) if they fail to report accurately and on time.
  • Municipal insurers and risk pools — face mandatory disclosure of premiums, bond costs, and contributions to settlements, which may affect market leverage and could prompt changes in underwriting or premium pricing.
  • Federal law enforcement agencies — must stand up or expand internal tracking and reporting systems, allocate staff to compile detailed incident and payment source information, and coordinate with DOJ verification processes.

Key Issues

The Core Tension

The bill balances public transparency about the financial consequences of officer misconduct against real operational and privacy constraints: it seeks comprehensive, comparable national data to drive accountability and policy change, but doing so imposes nontrivial administrative costs, risks uneven reporting from under-resourced jurisdictions, and forces DOJ to navigate Privacy Act limits while trying to make the dataset useful for oversight.

Implementation will require states, counties, and municipal agencies to standardize disparate records systems (case management, personnel, payroll, insurance claims) into a common reporting template. Smaller agencies and many local governments currently lack easy access to historic settlement accounting or to the granular categorization the bill requires (e.g., isolating the portion of a payout covered by a bond versus a central risk pool).

Those capacity gaps create real costs and risk uneven compliance across jurisdictions, which may skew early years of the public dataset toward larger or better-resourced entities.

The bill forces financial transparency but leaves several operational choices ambiguous: the statute requires disclosure of payment sources and bond future costs but does not prescribe a methodology for apportioning complex settlements involving multiple payors. Open-source verification by DOJ can improve accuracy but also raises the risk of inconsistent outcomes when media and court records vary in detail.

Finally, the Privacy Act carveout is limited: DOJ must both maximize public insight and avoid releasing PII, a technical balancing task that could constrain how granularly incidents are published and complicate cross-year matching of related events.

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