Legis Daily

Litigation Funding Transparency Act of 2026

USA119th CongressS-3826| Senate 
| Updated: 2/11/2026
Chuck Grassley

Chuck Grassley

Republican Senator

Iowa

Cosponsors (3)
Thomas Tillis (Republican)John Kennedy (Republican)John Cornyn (Republican)

Judiciary Committee

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted
This bill aims to increase transparency and oversight of third-party litigation funding in specific federal civil actions. It defines "covered civil actions" to include class actions , multidistrict litigation, and consolidated proceedings involving at least 100 cases, while exempting certain pro bono funding by non-profit organizations. A core provision requires parties or their counsel to disclose the identity of any third-party funder , including whether the funder is a foreign state, foreign person, sovereign wealth fund, or a commercial enterprise controlled by such entities. Parties must also produce the funding agreements for inspection. These disclosures are due within 10 days of agreement execution or at the time of service and are subject to the Federal Rules of Civil Procedure for enforcement. Furthermore, the bill mandates that the Administrative Office of the United States Courts regularly report to Congress and the Attorney General, and post on its website, details about foreign funders and the amounts they provide. Crucially, it prohibits third-party funders from exerting influence or control over litigation strategy , decision-making, or settlement negotiations. It also restricts funders' access to proprietary information acquired during discovery that is subject to a protective order, with courts empowered to enforce these provisions through contempt orders.
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Timeline

Bill from Previous Congress

S 116-471
Litigation Funding Transparency Act of 2019

Bill from Previous Congress

S 117-840
Litigation Funding Transparency Act of 2021
Feb 11, 2026
Introduced in Senate
Feb 11, 2026
Read twice and referred to the Committee on the Judiciary.
  • Bill from Previous Congress

    S 116-471
    Litigation Funding Transparency Act of 2019


  • Bill from Previous Congress

    S 117-840
    Litigation Funding Transparency Act of 2021


  • February 11, 2026
    Introduced in Senate


  • February 11, 2026
    Read twice and referred to the Committee on the Judiciary.

Law

Litigation Funding Transparency Act of 2026

USA119th CongressS-3826| Senate 
| Updated: 2/11/2026
This bill aims to increase transparency and oversight of third-party litigation funding in specific federal civil actions. It defines "covered civil actions" to include class actions , multidistrict litigation, and consolidated proceedings involving at least 100 cases, while exempting certain pro bono funding by non-profit organizations. A core provision requires parties or their counsel to disclose the identity of any third-party funder , including whether the funder is a foreign state, foreign person, sovereign wealth fund, or a commercial enterprise controlled by such entities. Parties must also produce the funding agreements for inspection. These disclosures are due within 10 days of agreement execution or at the time of service and are subject to the Federal Rules of Civil Procedure for enforcement. Furthermore, the bill mandates that the Administrative Office of the United States Courts regularly report to Congress and the Attorney General, and post on its website, details about foreign funders and the amounts they provide. Crucially, it prohibits third-party funders from exerting influence or control over litigation strategy , decision-making, or settlement negotiations. It also restricts funders' access to proprietary information acquired during discovery that is subject to a protective order, with courts empowered to enforce these provisions through contempt orders.
View Full Text

Suggested Questions

Get AI-generated questions to help you understand this bill better

Timeline

Bill from Previous Congress

S 116-471
Litigation Funding Transparency Act of 2019

Bill from Previous Congress

S 117-840
Litigation Funding Transparency Act of 2021
Feb 11, 2026
Introduced in Senate
Feb 11, 2026
Read twice and referred to the Committee on the Judiciary.
  • Bill from Previous Congress

    S 116-471
    Litigation Funding Transparency Act of 2019


  • Bill from Previous Congress

    S 117-840
    Litigation Funding Transparency Act of 2021


  • February 11, 2026
    Introduced in Senate


  • February 11, 2026
    Read twice and referred to the Committee on the Judiciary.
Chuck Grassley

Chuck Grassley

Republican Senator

Iowa

Cosponsors (3)
Thomas Tillis (Republican)John Kennedy (Republican)John Cornyn (Republican)

Judiciary Committee

Law

  • Introduced
  • In Committee
  • On Floor
  • Passed Chamber
  • Enacted