Relates to the payment of 5% of settlement funds totaling $1,000,000 or more to the principal balance of the state's general debt service fund.

Assembly Bill A02353, introduced in New York State on January 16, 2025, proposed that 5% of settlement funds totaling $1,000,000 or more be allocated to the state's general debt service fund. The bill was referred to the Ways and Means Committee on the same day but did not progress further and died in committee.

While the bill did not advance, the proposal to allocate a portion of large settlement funds to the state's debt service fund could have been viewed positively by fiscal conservatives and those advocating for debt reduction, as it aimed to reduce the state's financial obligations.

The bill's failure to progress suggests a lack of support, possibly due to concerns that diverting settlement funds to the debt service fund might reduce resources available for public services or compensation for affected parties.