The Settlement of Actions Involving Minor Children Act of 2025 aims to reform the process for settling claims involving minor children by eliminating the mandatory guardianship system and introducing a more flexible investment framework. Under this legislation, judicial approval is required for settlements with a net recovery of $10,000 or more, while settlements under this amount do not require court approval unless an alternative financial arrangement is sought. All settlement proceeds must be deposited into a blocked account managed by a trustee, with the child unable to access the funds until they reach 18, except for specific expenses like medical and educational costs. The bill also allows for various fiduciary arrangements, such as structured settlements or special needs trusts, to be approved by the court in the child's best interest.

Additionally, the bill maintains judicial discretion to appoint guardians when deemed necessary for the child's welfare. It introduces new sections to the District of Columbia Official Code, including provisions for the deposit and investment of settlement proceeds, requirements for court orders for withdrawals, and the process for trustees to petition the court for access to funds. The legislation is designed to reduce costs associated with guardianship and ensure that more of the settlement proceeds benefit the child directly.