Sponsors (4)
The bill clarifies and narrows who can form and be solicited by separate segregated funds—reducing corporate-driven political activity and legal uncertainty while restricting some employees' and shareholders' established channels for political participation and risking shifts of spending into less-regulated avenues.
Nonprofit organizations gain clearer, narrower rules and a concrete timeline (one-year wind-down, immediate effect) for who may form and operate separate segregated funds (SSFs), reducing legal uncertainty and standardizing compliance.
Rank-and-file workers 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, potentially protecting taxpayer interests.
Employees and shareholders of for-profit corporations lose the option of a corporate SSF, reducing an established vehicle for workplace-based political participation and collective giving.
Limiting who may be solicited (excluding non-executive staff and shareholders) concentrates solicitation among higher-level personnel and reduces opportunities for broader internal engagement.
Restricting SSFs to nonprofits is likely to push some political spending into other channels (e.g., PACs, independent expenditures), concentrating donations and increasing indirect or less-regulated political spending with uncertain effects on representation.
Based on analysis of 3 sections of legislative text.
Bars for‑profit corporations from operating corporate PACs (SSFs), limits solicitations to executive/administrative personnel, and requires nonqualifying SSFs to close within one year.
Introduced July 29, 2025 by Josh Harder · Last progress July 29, 2025
Prohibits for‑profit corporations from creating or operating separate segregated funds (corporate PACs), limits who may be solicited for such funds to a corporation's executive and administrative personnel (removing stockholders and their families), and requires nonconforming existing corporate PACs to close and disburse their balances within one year of enactment. The bill narrows which entities may run SSFs by tying eligibility to nonprofit corporations defined under the Internal Revenue Code and adjusts rules that apply to government contractors accordingly. The changes take effect on enactment and include a one‑year wind‑down for any existing SSF that no longer qualifies under the new nonprofit-only definition. The legislation does not appropriate new funds or create new federal programs; it revises campaign finance rules and definitions in the Federal Election Campaign Act.