[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2675 Reported in House (RH)]
<DOC>
Union Calendar No. 608
119th CONGRESS
2d Session
H. R. 2675
[Report No. 119-700]
To 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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 7, 2025
Mr. Cline introduced the following bill; which was referred to the
Committee on the Judiciary
June 15, 2026
Additional sponsors: Mr. Finstad, Mr. Wittman, Mr. Gill of Texas, Mr.
Vindman, Mr. Flood, Mr. Issa, Mr. Self, Mr. Bost, Mrs. Kiggans of
Virginia, Mr. Alford, Mr. Schmidt, Mr. McDowell, Mr. Moore of Alabama,
Ms. Van Duyne, Mr. Baumgartner, Mr. Moore of North Carolina, Mr. Barr,
Mrs. Wagner, Mr. Gooden, Mr. Nunn of Iowa, Mr. Mann, Mr. Lawler, Mrs.
Kim, Mr. Grothman, Mrs. Biggs of South Carolina, and Mr. Owens
June 15, 2026
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed
in italic]
[For text of introduced bill, see copy of bill as introduced on April
7, 2025]
_______________________________________________________________________
A BILL
To 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.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Protecting Our Courts from Foreign
Manipulation Act''.
SEC. 2. TRANSPARENCY AND LIMITATIONS ON FOREIGN THIRD-PARTY LITIGATION
FUNDING.
(a) In General.--Chapter 111 of title 28, United States Code, is
amended by adding at the end the following:
``Sec. 1660. Transparency and limitations on foreign third-party
litigation funding
``(a) Prohibition on Third-Party Funding Litigation by Foreign
States and Sovereign Wealth Funds.--
``(1) Funding prohibition.--It shall be unlawful--
``(A) for any foreign state or sovereign wealth
fund to provide any monetary support either directly or
indirectly for initiating or litigating a civil action
in which it is not a named party; or
``(B) for any party or counsel to receive from a
foreign state or sovereign wealth fund any monetary
support either directly or indirectly for initiating or
litigating a civil action in which the foreign state or
sovereign wealth fund is not a named party.
``(2) Sourcing prohibition.--It shall be unlawful for any
party or counsel to enter into an agreement creating a right
for anyone, other than the named parties or counsel of record,
to receive any payment that is contingent, in any respect, on
proceeds from the action or from any matter within a portfolio
of civil actions that includes the civil action and involves
the same counsel of record or affiliated counsel, the terms of
which are to be satisfied by money that has been or will be
directly or indirectly sourced, in whole or in part, from a
foreign state or a sovereign wealth fund.
``(b) Enforcement.--
``(1) Null and void.--Any obligation to provide monetary
support or agreement in violation of subsection (a) shall be
null and void.
``(2) Dismissal.--Any civil action in which monetary
support in violation of subsection (a) has been or is being
used by a plaintiff to litigate the civil action shall be
dismissed with prejudice and subject to terms the court
considers proper.
``(3) Relief on motion.--Any final judgment entered in a
civil action in which monetary support in violation of
subsection (a) was used may be subject to being relieved on
motion made pursuant to Rule 60(b)(3) of the Federal Rules of
Civil Procedure.
``(c) Disclosure of Third-Party Litigation Funding and Foreign
Source Certification by Foreign Persons, Foreign States, and Sovereign
Wealth Funds.--
``(1) In general.--In any civil action, each party or the
counsel of record for the party shall--
``(A) disclose in writing to the court, to all
other named parties to the civil action, to the
Attorney General, and to the Principal Deputy Assistant
Attorney General for National Security--
``(i) the name, the address and, if
applicable, the citizenship or the country of
incorporation or registration of any foreign
person, foreign state, or sovereign wealth
fund, other than the named parties or counsel
of record, that--
``(I) has provided or has agreed to
provide direct or indirect monetary
support for initiating or litigating
the civil action;
``(II) has a right to receive any
payment that is contingent, in any
respect, on proceeds from the civil
action pursuant to a settlement,
judgment, award of attorney's fees, or
pursuant to any other outcome of the
civil action; or
``(III) has a right to receive any
payment that is contingent, in any
respect, on proceeds from any matter
within a portfolio of civil actions
that includes the civil action by
settlement, judgement, award of
attorney's fees, or pursuant to any
other outcome of the civil action, and
involves the same counsel of record or
affiliated counsel; and
``(ii) if the party or the counsel of
record for the party submits a certification
described in subparagraph (C)(i), the name, the
address, and, if applicable, the citizenship or
the country of incorporation or registration of
the foreign person, foreign state, or sovereign
wealth fund that is the source of the money;
``(B) produce to the court, to all other named
parties to the civil action, to the Attorney General,
and to the Principal Deputy Assistant Attorney General
for National Security, except as otherwise stipulated
or ordered by the court, a copy of any documentation
concerning monetary support described in subparagraph
(A)(i)(I) or any agreement creating a contingent right
described in subclause (II) or (III) of subparagraph
(A)(i); and
``(C) for a civil action in which direct or
indirect monetary support for initiating or litigating
the civil action has been or will be provided or in
which there is an agreement creating a right to receive
any payment by anyone, other than the named parties or
counsel of record, that is contingent, in any respect,
on proceeds from of the civil action by settlement,
judgment, award of attorney's fees, or pursuant to any
other outcome of the civil action, or on proceeds from
any matter within a portfolio that includes the civil
action and involves the same counsel or affiliated
counsel, submit to the court a certification that--
``(i) the money that has been or will be
used to provide monetary support or satisfy any
term of the agreement has been or will be
directly or indirectly sourced, in whole or in
part, from a foreign person, foreign state, or
sovereign wealth fund, including the monetary
amounts that have been or will be used to
satisfy the agreement; or
``(ii) that the disclosure and
certification criteria set forth in
subparagraph (A)(ii) and clause (i) of this
subparagraph do not apply to the civil action.
``(2) Timing.--
``(A) In general.--Any disclosure and certification
required under paragraph (1) for a civil action
described in such paragraph shall be made not later
than the later of--
``(i) 30 days after the date on which any
monetary support that is required to be
disclosed pursuant to paragraph (1)(A)(i)(I),
or any portion thereof, is initially provided,
or any agreement described in subclause (I),
(II), or (III) of paragraph (1)(A)(i) is
executed; or
``(ii) the date on which the civil action
is filed.
``(B) Parties served or joined later.--A party that
has disclosure and certification obligations under
paragraph (1) that is first joined in the civil action
after the date on which the civil action is filed shall
make any disclosure and certification required under
paragraph (1) not later than 30 days after being
joined, unless a different time is set by stipulation
or court order.
``(3) Foreign source disclosure and certification format.--
``(A) In general.--Any disclosure required under
paragraph (1)(A) and a certification required under
paragraph (1)(C) shall--
``(i) be made in the form of a declaration
under penalty of perjury pursuant to section
1746 and shall be made to the best knowledge,
information, and belief of the declarant formed
after reasonable inquiry; and
``(ii) be provided to all other named
parties to the civil action, to the Attorney
General, and to the Principal Deputy Assistant
Attorney General for National Security by the
party or counsel of record for the party making
the disclosure and certification, except as
otherwise stipulated or ordered by the court.
``(B) Supplementation and correction.--Not later
than 30 days after the date on which a party or counsel
of record for the party knew or should have known that
a disclosure made under paragraph (1)(A) or a
certification made under paragraph (1)(C) is incomplete
or inaccurate in any material respect, the party or
counsel of record shall supplement or correct the
disclosure or certification.
``(d) Failure To Disclose, To Supplement; Sanctions.--A disclosure,
production, or certification under subsection (b) is deemed to be
information required by Rule 26(a) of the Federal Rules of Civil
Procedure and subject to the sanctions provisions of Rule 37 of the
Federal Rules of Civil Procedure.
``(e) Definitions.--In this section--
``(1) the term `foreign person'--
``(A) means any person or entity that is not a
United States person, as defined in section 101 of the
Foreign Intelligence Surveillance Act of 1978 (50
U.S.C. 1801); and
``(B) does not include a foreign state or a
sovereign wealth fund;
``(2) the term `foreign state' has the meaning given that
term in section 1603; and
``(3) the term `sovereign wealth fund' means an investment
fund owned or controlled, directly or indirectly, by a foreign
state or an agency or instrumentality of a foreign state (as
defined in section 1603).''.
(b) Technical and Conforming Amendment.--The table of sections
chapter 111 of title 28, United States Code, is amended by adding at
the end the following:
``1660. Transparency and limitations on foreign third-party litigation
funding.''.
SEC. 3. REPORT TO CONGRESS.
Not later than 1 year after the date of enactment of this Act, and
annually thereafter, the Attorney General shall submit to the Committee
on the Judiciary of the Senate and the Committee on the Judiciary of
the House of Representatives a report on the activities involving
foreign third-party litigation funding in Federal courts, including, if
applicable--
(1) the identities of foreign third-party litigation
funders in Federal courts, including names, addresses, and
citizenship or country of incorporation or registration;
(2) the identities of foreign persons, foreign states, or
sovereign wealth funds (as such terms are defined in section
1660 of title 28, United States Code, as added by section 2 of
this Act) that have been the sources of money for third-party
litigation funding in Federal courts;
(3) the judicial districts in which foreign third-party
litigation funding has occurred;
(4) an estimate of the total amount of foreign-sourced
money used for third-party litigation funding in Federal
courts, including an estimate of the amount of such money
sourced from each country; and
(5) a summary of the subject matters of the civil actions
in Federal courts for which foreign sourced money has been used
for third-party litigation funding.
SEC. 4. APPLICABILITY.
The amendments made by this Act shall apply to any civil action
pending on or commenced on or after the date of enactment of this Act.
Union Calendar No. 608
119th CONGRESS
2d Session
H. R. 2675
[Report No. 119-700]
_______________________________________________________________________
A BILL
To 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.
_______________________________________________________________________
June 15, 2026
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed