Final judgments adverse to the United States can sometimes be paid by the client agency, or an insurer, surety, or indemnitor. If payment cannot be effected in that manner, payment can usually be made from the funds appropriated pursuant to 31 U.S.C. § 1304. Thus, judgments (and certain compromise settlements, see JM 4-3.200), payable in accordance with 28 U.S.C. §§ 2414 or 2517, which are final or of which further appellate review will not be sought, may be paid out of the Judgment Fund by the Department of the Treasury, Bureau of the Fiscal Service (BFS) or paid by the Postal Service, as appropriate. The Judgment Fund is available for court judgments and Justice Department compromise settlements of actual or imminent lawsuits against the government.

In cases delegated to them by the Civil Division, United States Attorneys should submit adverse final money judgments or compromises that cannot be paid by the client agency, insurer, surety, or indemnitor, to Treasury’s BFS or the Postal Service as appropriate. Note that judgments adverse to the United States are not "final" until the Solicitor General has determined that no further appellate review will be sought. No judgments should be transmitted to the BFS or Postal Service for payment until such a determination has been made. (See JM 2-2.121 et seq.).

In order to facilitate prompt payment of such judgments or compromises, claims should be submitted electronically to BFS via the Judgment Fund Internet Claims System (JFICS). https://www.fiscal.treasury.gov/fsservices/gov/pmt/jdgFund/judgementFund_home.htm. If JFICS is unavailable, claims may be transmitted by FAX by completing BFS Standard Judgment Fund Transmittal Form 194. Standard Forms 196 and 197 must also be completed and submitted with the transmittal. Standardized Judgment Fund Forms are available on the Judgment Fund website at https://www.fiscal.treasury.gov/fsservices/gov/pmt/jdgFund/forms.htm.

The Improper Payment Elimination and Recovery Improvement Act of 2012 and Executive Order 13244, require federal agencies to take additional steps to verify that payments are proper before submitting claims for payment to the Judgment Fund. USAOs are required to access Treasury’s Do Not Pay Portal (DNP) and run a check of the intended payees against two databases, the Office of Foreign Assets Control’s (OFAC’s) Specially Designated Nationals (SDN) List and the Social Security Administration’s Death Master File (DMF), to assure the intended payees do not appear in either database. See, DNP website: https://www.donotpay.treas.gov/index.htm. If a payee matches an entry on OFAC’s SDN list, the USAO is required to contact OFAC for further instructions prior to submitting a claim through JFICS. If the name or Social Security Number (SSN) of a potential payee matches an entry on the DMF, consultation with the payee’s counsel is necessary to determine the individual’s status and that the proper SSN has been provided.

[updated April 2018]