Sponsors (4)
The bill tightens and clarifies rules to limit corporate-linked political funds and boost transparency—benefiting voters and government integrity—while reducing fundraising and participation channels for businesses, shareholders, and donors and creating winding-down and compliance burdens for affected organizations.
Voters and taxpayers: reduces corporate-linked political influence by limiting separate segregated funds (SSFs) to tax-exempt nonprofit organizations, narrowing which entities can raise corporate-style political funds.
Rank-and-file employees and their families: protects them from corporate solicitation pressure by restricting solicitation authority to executive and administrative personnel only.
Government integrity and taxpayers: reduces perceived pay-to-play risks by applying the nonprofit-only SSF rule to government contractors, narrowing avenues for contractor-linked political activity.
For-profit firms, small-business owners, and some employees: restricts which entities can form SSFs, reducing fundraising options and potentially limiting employee participation in coordinated corporate political giving.
Shareholders, donors, and small-donor organizations: removes stockholders as a solicitation class and forces closure of non‑qualifying funds, which can eliminate existing channels for political giving and reduce organized small-donor mechanisms.
Nonprofit organizations: must disburse entire balances of affected SSFs within one year, which can force rushed spending decisions and create significant administrative burdens.
Based on analysis of 3 sections of legislative text.
Bars for-profit corporations from operating corporate PACs, limits solicitations to executive/administrative staff, and requires nonqualifying SSFs to close and disburse within one year.
Introduced July 29, 2025 by Josh Harder · Last progress July 29, 2025
Prohibits for-profit corporations from using separate segregated funds (corporate PACs) for political purposes by limiting those funds to nonprofit corporations that qualify under section 501 of the tax code. Restricts who may be solicited for contributions to these funds to executive and administrative personnel only, removing stockholders and their families from solicitation eligibility, and requires existing corporate SSFs that do not meet the new nonprofit definition to close and disburse their balances within one year of enactment. Also adjusts the rule applying to government contractors so that the prohibition applies to nonprofit corporations under the new definition rather than to all corporations. Changes take effect on enactment, and affected SSFs must terminate within one year.