PolicyBrief
S. 3966
119th CongressMar 3rd 2026
Terminating Restrictive Enforcement of Youth Settlements Law
IN COMMITTEE

TREY'S Law renders nondisclosure agreements unenforceable if they prevent victims or witnesses from reporting or disclosing the sexual abuse of a minor.

Ted Cruz
R

Ted Cruz

Senator

TX

LEGISLATION

TREY’S Law Voids NDAs in Child Abuse Settlements: New Federal Protections Apply Retroactively to All Past and Future Agreements.

TREY’S Law targets the 'hush money' culture by making nondisclosure clauses in contracts void and unenforceable if they stop someone from talking about the sexual abuse of a minor. Specifically, Section 4 of the bill ensures that no victim or witness can be legally silenced regarding the facts of an abuse case, even if they previously signed a settlement agreement. The bill defines a minor as anyone under 18 and covers any sexual act that is a crime under federal or state law, including trafficking. This isn't just about future deals; Section 5 makes this rule retroactive, meaning it reaches back in time to tear up gag orders in existing contracts that have been used to keep survivors quiet for years.

Breaking the Silence

For a survivor who may have signed a settlement a decade ago, this bill changes the legal landscape overnight. Under current rules in many places, if that person went to the police or spoke to a journalist, they could be sued for breach of contract and forced to pay back their settlement money. TREY’S Law effectively deletes those 'keep quiet' rules. It ensures that reporting a crime to law enforcement, child protection services, or even a Member of Congress is a protected right that a private contract cannot take away. It’s a major shift from treating these incidents as private civil disputes to treating them as matters of public safety and federal law enforcement.

Privacy That Works for Survivors

One interesting detail in Section 4(b) is that the bill doesn't just ban all confidentiality—it actually lets it work in the survivor's favor. While a perpetrator or an organization can no longer legally stop a victim from speaking out, a victim can still require the perpetrator to keep quiet about the details of a settlement, such as the dollar amount paid out. This allows a person to maintain their financial privacy while retaining the absolute right to disclose the abuse itself. It’s a one-way street designed to protect the survivor’s agency rather than the perpetrator’s reputation.

Overriding the Fine Print

This legislation doesn't ask states for permission; it explicitly overrides any state laws that would allow these NDAs to be enforced. For parents, teachers, or youth coaches, this means the legal 'threat' often used by powerful institutions to bury scandals is effectively neutralized. While organizations that have historically used these agreements to manage their liability will face a new reality of transparency, the bill is clear: the right to report a crime and seek justice in court is a constitutional priority that no private contract can sign away. The goal is to ensure that 'the fine print' never again serves as a shield for criminal conduct.