This, colloquially, has come to mean an auxiliary or reserve fund[?] into which money may be put. However, it especially has meaning within a context of corrupt (including but not limited to) political dealings - this could be for example by governments or other bodies/individuals. These funds can have a particular elements of illegality, illegitimacy, or secrecy about them with regards to the use of this money; as well as the details of, or nature surrounding, the means that acquired it.
As such, political dealings with slush funds, tend to bring suspicions of quid pro quo (buying political favors), and tend to be viewed on the surface as corrupt and subversive of the democratic process. Richard Nixon, as an example has a scandal in 1952 involving what was called a "slush fund", for which he apologized on television, and was popularly acquitted.
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