Ban Corporate PACs Act

This bill would ban corporate PACs run by for‑profit companies. Only nonprofit organizations could set up and run political action committees to raise and spend money in federal elections, as described in the bill’s short title, the Ban Corporate PACs Act. It also narrows who nonprofits may ask for PAC donations to only their executive and administrative staff, not stockholders or the general workforce. The bill updates rules for government contractors to align with these changes.

Existing corporate PACs that don’t meet the new nonprofit rule would have to shut down and give out all remaining funds within one year. The law would take effect as soon as it’s enacted.

• Who is affected: For‑profit corporations, nonprofit organizations, corporate PACs, executive and administrative employees, and government contractors.
• What changes: Only nonprofits may run PACs; nonprofits can solicit only executive/administrative staff for PAC donations; rules for government contractors are adjusted; non‑qualifying PACs must close and disburse their balances within one year.
• When: Effective immediately upon enactment, with a one‑year transition for existing PACs.