Sponsors (4)
The bill centralizes SSF activity within nonprofit entities—reducing solicitation pressure and certain contractor-related influence—while eliminating corporate SSFs and risking a shift of political spending to fewer or less-regulated channels, disrupting existing donor and workplace participation.
Nonprofit organizations must operate SSFs under clearer, narrower rules with a one-year wind-down and an immediate effective date, giving nonprofits and regulators a concrete compliance timeline and reducing prolonged legal uncertainty.
Rank-and-file employees and their families face less pressure to contribute because solicitations are limited to executive and administrative personnel.
Narrowing SSF permissions for government contractors reduces a pathway for contractor-driven political influence in federal procurement.
Political giving and fundraising may shift to fewer, more concentrated or less-regulated channels (e.g., PACs or independent expenditures), increasing the risk of concentrated influence and reducing transparency of political spending.
For-profit corporations and their employees and shareholders lose the ability to form SSFs, reducing an established avenue for collective employee political participation.
Donors and beneficiaries of affected SSFs lose an ongoing vehicle for political giving and must redistribute funds within one year, disrupting established donor plans.
Based on analysis of 3 sections of legislative text.
Narrows SSF (corporate PAC) authority to nonprofit corporations and limits solicitation to executive/administrative personnel; nonqualifying SSFs must close within one year.
Official title: To amend the Federal Election Campaign Act of 1971 to limit the authority of corporations to establish and operate separate segregated funds utilized for political purposes, including the establishment or operation of a political committee, to nonprofit corporations, and for other purposes.
Introduced July 29, 2025 by Josh Harder · Last progress July 29, 2025
Prohibits most for‑profit corporations from establishing or operating separate segregated funds (corporate PACs) by restricting that authority to nonprofit corporations that meet the Internal Revenue Code definition; narrows who may be solicited for those funds to executive and administrative personnel (removing stockholders and their families). Existing corporate SSFs that do not qualify as nonprofit funds must terminate and distribute their balances within one year of enactment.