Sponsors (4)
The bill substantially increases transparency and oversight of third‑party litigation funding and protects litigant autonomy, but it risks exposing confidential deal information, raising compliance costs, chilling legitimate cross‑border financing, and creating retroactivity‑driven disputes.
Parties filing suits, courts, Congress, and the public — required disclosure and public reporting of third‑party funders and funding agreements increases transparency about who finances major litigation.
Congress and the public — reporting to the AOUSC and Congress enables oversight of foreign- or sovereign-backed litigation funding, helping identify potential foreign influence in U.S. cases.
Litigants and counsel — prohibiting funder control over litigation strategy and settlement preserves litigants' autonomy and counsel's independent judgment.
Third‑party funders, litigants, and counsel — producing funding agreements and publicly posting funder identities/amounts could expose confidential business information or settlement‑sensitive details.
Plaintiffs, law firms, and small business owners — broad definitions and mandatory disclosures may increase litigation costs and administrative burden, potentially discouraging meritorious claims.
Foreign persons, sovereign wealth funds, and financial institutions — public lists identifying foreign‑affiliated funders could chill legitimate cross‑border financing and raise diplomatic and privacy concerns.
Based on analysis of 3 sections of legislative text.
Introduced February 11, 2026 by Charles Ernest Grassley · Last progress February 11, 2026
Requires parties and counsel in large group civil cases (class actions, MDLs, and coordinated sets of 100+ related cases) to disclose third-party litigation funders, produce funding agreements, and report whether funders are foreign or controlled by foreign interests. Prohibits funders from directing litigation or settlement decisions, restricts funder access to certain protected discovery, and directs the Administrative Office of the U.S. Courts to publish recurring public reports and a website listing identified foreign/commercial funders and amounts. The rules apply to cases pending at enactment and to cases filed afterward.