Democracy Restoration Act of 2018 This bill establishes that an individual's right to vote in a federal election may not be abridged due to a criminal conviction unless the individual is incarcerated for a felony sentence at the time of the election. The bill also (1) requires incarcerated individuals to be notified of the restoration of their voting rights upon release, and (2) prohibits states and local governments that do not comply with this bill from receiving federal funds for constructing or improving prisons.