Congress Proposes Ban on Foreign Government Funding for U.S. Lawsuits

Senate Bill Targets Foreign Influence in U.S. Litigation Funding·February 11 – February 12, 2026

3 months ago

Congress Proposes Ban on Foreign Government Funding for U.S. Lawsuits

Legislation to expose third-party lawsuit funding is currently stalled in committee, with the House version awaiting a floor vote and the Senate version recently referred for review. Until enacted, foreign entities can continue to finance U.S. litigation without public disclosure, potentially allowing rivals to target American businesses and weaken national security.

5 months ago

Senator Grassley Introduces Bill Requiring Disclosure of Outside Investors in Class Action Lawsuits

Senator Chuck Grassley introduced the Litigation Funding Transparency Act to require disclosure of outside investors in class action lawsuits.

S. 3826Senate Bill Targets Secret Foreign and Private Funding in Major U.S. Class Action LawsuitsI introd the Litigation Funding Transparency Act w Sens Tillis/Kennedy/Cornyn 2stop 3rd parties frm influencing litigati

8 months ago

House Judiciary Committee Advances Bill Banning Foreign Governments From Funding U.S. Lawsuits

The House Judiciary Committee voted 15-11 to advance a bill that would ban foreign governments from funding parties in federal civil cases.

H.R. 2675Congress Proposes Ban on Foreign Government Funding for U.S. Lawsuits

1 year ago

Rep. Cline Introduces H.R. 2675 to Block Foreign Sovereign Wealth Funds From U.S. Litigation Funding

Representative Cline introduced H.R. 2675 to prevent foreign sovereign wealth funds from influencing the U.S. legal system.

H.R. 2675Congress Proposes Ban on Foreign Government Funding for U.S. Lawsuits

The Facts

Who This Affects

3 groups

Hurts

Undocumented

The bill restricts foreign-funded litigation, which could indirectly affect cases brought on behalf of undocumented individuals by nonprofits or legal organizations that receive foreign donations. While a carve-out exists for pro bono nonprofits, it excludes organizations funded by foreign persons or entities, potentially reducing the pool of available legal resources for some immigration-related class actions.

Mixed

Small Business Owner

Small business owners who are plaintiffs in class action or mass tort lawsuits sometimes rely on third-party litigation funding to afford legal costs against larger corporations. This bill would make those funding arrangements less private by requiring disclosure to the court and opposing parties, which could discourage some funders from participating or give defendants strategic information, but could also protect small businesses from exploitative funding deals by increasing transparency.

Immigrant

Foreign individuals funding U.S. lawsuits must now be disclosed, which could discourage some legitimate litigation support for immigrants.

Policies

These are separate but related bills introduced in the House and Senate to tackle the same issue. S. 3826 targets transparency in class action lawsuits, while H.R. 2675 goes further by banning foreign governments from funding U.S. litigation entirely.

Senate Bill Targets Secret Foreign and Private Funding in Major U.S. Class Action Lawsuits

S. 3826

Congress Proposes Ban on Foreign Government Funding for U.S. Lawsuits

H.R. 2675

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