Ban Corporate PACs Act

This bill would stop for-profit companies from running their own political action committees (PACs). Only nonprofit groups that are tax-exempt under section 501(c) could operate these separate political funds going forward, as defined in the bill’s text . It also tightens who can be asked to give to these funds: only executive and administrative staff could be solicited, removing stockholders from the list of people who can be asked for donations . Rules for government contractors are updated so the restrictions apply to nonprofit corporations in this context .

If the bill becomes law, it would take effect right away. Existing corporate PACs that are not run by nonprofits would have to shut down and pay out all remaining money within one year of enactment .

• Who is affected: For-profit corporations, nonprofit organizations, executives/administrative staff, stockholders, and existing corporate PACs
• What changes: Only nonprofits can operate PACs; only exec/administrative staff can be asked for contributions; government-contractor rules updated for nonprofits
• When: Effective upon enactment; one-year wind-down for non-nonprofit corporate PACs