S. 2515

119th CONGRESS 1st Session

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.

IN THE SENATE OF THE UNITED STATES · July 29, 2025 · Sponsor: Mr. Kelly · Committee: Committee on Rules and Administration

S. 2515

SEC. 1. Short title

This Act may be cited as the Ban Corporate PACs Act.

SEC. 2. Limiting authority of corporations to establish or operate separate segregated funds for political purposes to nonprofit corporations

(a) Limitation
- (1) In general
  - Section 316(b)(2)(C) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30118(b)(2)(C)) is amended by striking and inserting .
- (2) Definition
  - For purposes of this section, the term nonprofit corporation means a corporation described in section 501(c) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of such Code, other than a corporation which is ineligible to be exempt from taxation under section 501(a) of such Code if it establishes a separate segregated fund under this subsection.
  - Section 316(b) of such Act (52 U.S.C. 30118(b)) is amended by adding at the end the following new paragraph:
(b) Permitting solicitation of contributions only from executive and administrative personnel
- Section 316(b) of such Act (52 U.S.C. 30118(b)) is amended—
  - in paragraph (4)(A)(i), by striking ;
  - in paragraph (4)(B)—
    - by striking the first place it appears and inserting ;
    - by striking any stockholder, executive or administrative personnel,and inserting any executive or administrative personnel; and
    - by striking stockholders, executive or administrative personnel,and inserting executive or administrative personnel;
  - in paragraph (4)(D)—
    - by striking ;
    - by striking and inserting ; and
  - in paragraph (5), by striking .
(c) Treatment of government contractors
- Section 317(b) of such Act (52 U.S.C. 30119(b)) is amended—
  - by striking any corporationand inserting any nonprofit corporation; and
  - by striking a corporationand inserting a nonprofit corporation.

SEC. 3. Effective date; transition for existing funds and committees

(a) Effective date
- The amendments made by this Act shall take effect on the date of the enactment of this Act.
(b) Transition for existing funds and committees
- In the case of a separate segregate fund established and operating under section 316(b)(2)(C) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30118(b)(2)(C)) as of the date of the enactment of this Act which is not a fund of a nonprofit corporation as defined in section 316(b)(8) of such Act (as added by section 2(a)(2)), the fund shall terminate and disburse its entire balance not later than 1 year after the date of the enactment of this Act.