Sponsors (2)
The bill increases transparency and government oversight to detect and limit foreign state influence in U.S. civil litigation, but does so at the cost of greater compliance and administrative burdens, potential exposure of confidential commercial information, retroactivity risks, and a likely chilling effect on legitimate third‑party litigation financing that can reduce access to justice.
Courts, the DOJ, Congress, and civil litigants gain much greater visibility into foreign‑sourced litigation funding, helping detect foreign influence, assess conflicts, and inform national‑security review.
Disclosures are treated as enforceable discovery (Rule 26(a))-type material, giving courts sanction authority and clearer obligations to compel production and enforce compliance.
Prohibiting contingent funding from foreign states or sovereign wealth funds removes a direct channel for state actors to steer or profit from U.S. litigation, reducing a specific national‑security risk.
Plaintiffs who rely on third‑party financing (including many low‑income claimants) and commercial funders may be chilled from participating because of disclosure and publicity requirements, reducing access to justice.
Producing funding agreements to courts and the DOJ risks disclosure of proprietary, privileged, or confidential commercial information belonging to funders and parties.
New disclosure, collection, and production obligations create additional compliance and discovery costs for parties and counsel and raise legal uncertainty for international investors because of broad/extra‑territorial definitions and tight deadlines.
Based on analysis of 4 sections of legislative text.
Requires disclosure and production of foreign third‑party litigation funding, prohibits funding from foreign states/sovereign wealth funds, and mandates DOJ annual reporting.
Official title: Amend chapter 111 of title 28, United States Code, to increase transparency and oversight of third-party funding by foreign persons, to prohibit third-party funding by foreign states and sovereign wealth funds, and for other purposes.
Introduced November 18, 2025 by John Neely Kennedy · Last progress November 18, 2025
Imposes new disclosure rules and prohibitions on foreign third‑party litigation funding in federal civil cases, requiring parties and counsel to report foreign funders (including certain foreign persons, states, and sovereign wealth funds), produce funding agreements, and certify funding sources under penalty of perjury. Declares funding agreements backed in whole or part by a foreign state or sovereign wealth fund void, requires annual Department of Justice reporting on foreign litigation funding activity, and makes the rules apply to cases pending at enactment as well as future civil actions.