[Congressional Record Volume 168, Number 195 (Thursday, December 15, 2022)]
[Senate]
[Pages S7254-S7259]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. DURBIN (for himself, Mr. Markey, Mr. Murphy, Mr. Sanders, 
        Ms. Klobuchar, Ms. Smith, Mr. Schatz, and Ms. Warren):
  S. 5277. A bill to reform the financing of Senate elections, and for 
other purposes; to the Committee on Finance.
  Mr. DURBIN. Mr. President, I ask unanimous consent that the text of 
the bill be printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 5277

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Fair 
     Elections Now Act of 2022''.
       (b) Table of Contents.--The table of contents of this Act 
     is as follows:

Sec. 1. Short title; table of contents.

                TITLE I--SMALL DONOR INCENTIVE PROGRAMS

Sec. 101. Sense of the Senate regarding small donor incentive programs.

     TITLE II--SMALL DOLLAR FINANCING OF SENATE ELECTION CAMPAIGNS

Sec. 201. Eligibility requirements and benefits of fair elections 
              financing of Senate election campaigns.
Sec. 202. Prohibition on joint fundraising committees.
Sec. 203. Exception to limitation on coordinated expenditures by 
              political party committees with participating candidates.

     TITLE III--RESPONSIBILITIES OF THE FEDERAL ELECTION COMMISSION

Sec. 301. Petition for certiorari.
Sec. 302. Electronic filing of FEC reports.

                      TITLE IV--REVENUE PROVISIONS

Sec. 401. Freedom From Influence Fund revenue.

                   TITLE V--MISCELLANEOUS PROVISIONS

Sec. 501. Severability.
Sec. 502. Effective date.

                TITLE I--SMALL DONOR INCENTIVE PROGRAMS

     SEC. 101. SENSE OF THE SENATE REGARDING SMALL DONOR INCENTIVE 
                   PROGRAMS.

       It is the sense of the Senate that Congress should take 
     steps to allow more Americans to fully participate in our 
     democracy through authorizing publicly financed small donor 
     incentive programs, including small-dollar voucher programs 
     that broaden and diversify the number of Americans who are 
     able to have their voice heard in the marketplace of ideas.

     TITLE II--SMALL DOLLAR FINANCING OF SENATE ELECTION CAMPAIGNS

     SEC. 201. ELIGIBILITY REQUIREMENTS AND BENEFITS OF FAIR 
                   ELECTIONS FINANCING OF SENATE ELECTION 
                   CAMPAIGNS.

       The Federal Election Campaign Act of 1971 (52 U.S.C. 30101 
     et seq.) is amended by adding at the end the following:

    ``TITLE V--FAIR ELECTIONS FINANCING OF SENATE ELECTION CAMPAIGNS

                    ``Subtitle A--General Provisions

     ``SEC. 501. DEFINITIONS.

       ``In this title:

[[Page S7255]]

       ``(1) Allocation from the fund.--The term `allocation from 
     the Fund' means an allocation of money from the Freedom From 
     Influence Fund to a participating candidate pursuant to 
     section 522.
       ``(2) Commission.--The term `Commission' means the Federal 
     Election Commission.
       ``(3) Enhanced matching contribution.--The term `enhanced 
     matching contribution' means an enhanced matching payment 
     provided to a participating candidate for qualified small 
     dollar contributions, as provided under section 524.
       ``(4) Enhanced support qualifying period.--The term 
     `enhanced support qualifying period' means, with respect to a 
     general election, the period which begins 60 days before the 
     date of the election and ends 14 days before the date of the 
     election.
       ``(5) Fair elections qualifying period.--The term `Fair 
     Elections qualifying period' means, with respect to any 
     candidate for Senator, the period--
       ``(A) beginning on the date on which the candidate files a 
     statement of intent under section 511(a)(1); and
       ``(B) ending on the date that is 30 days before--
       ``(i) the date of the primary election; or
       ``(ii) in the case of a State that does not hold a primary 
     election, the date prescribed by State law as the last day to 
     qualify for a position on the general election ballot.
       ``(6) Fair elections start date.--The term `Fair Elections 
     start date' means, with respect to any candidate, the date 
     that is 180 days before--
       ``(A) the date of the primary election; or
       ``(B) in the case of a State that does not hold a primary 
     election, the date prescribed by State law as the last day to 
     qualify for a position on the general election ballot.
       ``(7) Fund.--The term `Fund' means the Freedom From 
     Influence Fund established by section 502.
       ``(8) Immediate family.--The term `immediate family' means, 
     with respect to any candidate--
       ``(A) the candidate's spouse;
       ``(B) a child, stepchild, parent, grandparent, brother, 
     half-brother, sister, or half-sister of the candidate or the 
     candidate's spouse; and
       ``(C) the spouse of any person described in subparagraph 
     (B).
       ``(9) Matching contribution.--The term `matching 
     contribution' means a matching payment provided to a 
     participating candidate for qualified small dollar 
     contributions, as provided under section 523.
       ``(10) Nonparticipating candidate.--The term 
     `nonparticipating candidate' means a candidate for Senator 
     who is not a participating candidate.
       ``(11) Participating candidate.--The term `participating 
     candidate' means a candidate for Senator who is certified 
     under section 514 as being eligible to receive an allocation 
     from the Fund.
       ``(12) Qualifying contribution.--The term `qualifying 
     contribution' means, with respect to a candidate, a 
     contribution that--
       ``(A) is in an amount that is--
       ``(i) not less than $5; and
       ``(ii) not more than $200;
       ``(B) is made by an individual who is not otherwise 
     prohibited from making a contribution under this Act;
       ``(C) is made during the Fair Elections qualifying period; 
     and
       ``(D) meets the requirements of section 512(b).
       ``(13) Qualified small dollar contribution.--The term 
     `qualified small dollar contribution' means, with respect to 
     a candidate, any contribution (or series of contributions)--
       ``(A) which is not a qualifying contribution (or does not 
     include a qualifying contribution);
       ``(B) which is made by an individual who is not prohibited 
     from making a contribution under this Act; and
       ``(C) the aggregate amount of which does not exceed $200 
     per election.
       ``(14) Qualifying multicandidate political committee 
     contribution.--
       ``(A) In general.--The term `qualifying multicandidate 
     political committee contribution' means any contribution to a 
     candidate that is made from a qualified account of a 
     multicandidate political committee (within the meaning of 
     section 315(a)(2)).
       ``(B) Qualified account.--For purposes of subparagraph (A), 
     the term `qualified account' means, with respect to a 
     multicandidate political committee, a separate, segregated 
     account of the committee that consists solely of 
     contributions which meet the following requirements:
       ``(i) All contributions to such account are made by 
     individuals who are not prohibited from making contributions 
     under this Act.
       ``(ii) The aggregate amount of contributions from each 
     individual to such account and all other accounts of the 
     political committee do not exceed the amount described in 
     paragraph (13)(C).

     ``SEC. 502. FREEDOM FROM INFLUENCE FUND.

       ``(a) Establishment.--There is established in the Treasury 
     a fund to be known as the `Freedom from Influence Fund'.
       ``(b) Amounts Held by Fund.--The Fund shall consist of the 
     following amounts:
       ``(1) Appropriated amounts.--
       ``(A) In general.--Amounts appropriated to the Fund.
       ``(B) Sense of the senate regarding appropriations.--It is 
     the sense of the Senate that--
       ``(i) there should be imposed on any payment made to any 
     person (other than a State or local government or a foreign 
     nation) who has a contract with the Government of the United 
     States in excess of $10,000,000 a tax equal to 0.50 percent 
     of amount paid pursuant to each contract, except that the 
     aggregate tax on each contract for any taxable year shall not 
     exceed $500,000; and
       ``(ii) the revenue from such tax should be appropriated to 
     the Fund.
       ``(2) Voluntary contributions.--Voluntary contributions to 
     the Fund.
       ``(3) Other deposits.--Amounts deposited into the Fund 
     under--
       ``(A) section 513(c) (relating to exceptions to 
     contribution requirements);
       ``(B) section 521(c) (relating to remittance of allocations 
     from the Fund);
       ``(C) section 532 (relating to violations); and
       ``(D) any other section of this Act.
       ``(4) Investment returns.--Interest on, and the proceeds 
     from, the sale or redemption of, any obligations held by the 
     Fund under subsection (c).
       ``(c) Investment.--The Commission shall invest portions of 
     the Fund in obligations of the United States in the same 
     manner as provided under section 9602(b) of the Internal 
     Revenue Code of 1986.
       ``(d) Use of Fund.--
       ``(1) In general.--The sums in the Fund shall be used to 
     provide benefits to participating candidates as provided in 
     subtitle C.
       ``(2) Insufficient amounts.--Under regulations established 
     by the Commission, rules similar to the rules of section 
     9006(c) of the Internal Revenue Code shall apply.

              ``Subtitle B--Eligibility and Certification

     ``SEC. 511. ELIGIBILITY.

       ``(a) In General.--A candidate for Senator is eligible to 
     receive an allocation from the Fund for any election if the 
     candidate meets the following requirements:
       ``(1) The candidate files with the Commission a statement 
     of intent to seek certification as a participating candidate 
     under this title during the period beginning on the Fair 
     Elections start date and ending on the last day of the Fair 
     Elections qualifying period.
       ``(2) The candidate meets the qualifying contribution 
     requirements of section 512.
       ``(3) The candidate files with the Commission a statement 
     certifying that the authorized committees of the candidate 
     meet the requirements of section 513(d)(2).
       ``(4) Not later than the last day of the Fair Elections 
     qualifying period, the candidate files with the Commission an 
     affidavit signed by the candidate and the treasurer of the 
     candidate's principal campaign committee declaring that the 
     candidate--
       ``(A) has complied and, if certified, will comply with the 
     contribution and expenditure requirements of section 513;
       ``(B) if certified, will not run as a nonparticipating 
     candidate during such year in any election for the office 
     that such candidate is seeking; and
       ``(C) has either qualified or will take steps to qualify 
     under State law to be on the ballot.
       ``(b) General Election.--Notwithstanding subsection (a), a 
     candidate shall not be eligible to receive an allocation from 
     the Fund for a general election or a general runoff election 
     unless the candidate's party nominated the candidate to be 
     placed on the ballot for the general election or the 
     candidate otherwise qualified to be on the ballot under State 
     law.

     ``SEC. 512. QUALIFYING CONTRIBUTION REQUIREMENT.

       ``(a) In General.--A candidate for Senator meets the 
     requirement of this section if, during the Fair Elections 
     qualifying period, the candidate obtains--
       ``(1) a number of qualifying contributions equal to the sum 
     of--
       ``(A) 2,000; plus
       ``(B) 500 for each congressional district in the State with 
     respect to which the candidate is seeking election; and
       ``(2) a total dollar amount of qualifying contributions 
     equal to 10 percent of the amount of the allocation such 
     candidate would be entitled to receive for the primary 
     election under section 522(c)(1) (determined without regard 
     to paragraph (5) thereof) if such candidate were a 
     participating candidate.
       ``(b) Requirements Relating to Receipt of Qualifying 
     Contribution.--Each qualifying contribution--
       ``(1) may be made by means of a personal check, money 
     order, debit card, credit card, or electronic payment 
     account;
       ``(2) shall be accompanied by a signed statement containing 
     the contributor's name and the contributor's address in the 
     State in which the contributor is registered to vote; and
       ``(3) shall be acknowledged by a receipt that is sent to 
     the contributor with a copy kept by the candidate for the 
     Commission and a copy kept by the candidate for the election 
     authorities in the State with respect to which the candidate 
     is seeking election.
       ``(c) Verification of Qualifying Contributions.--The 
     Commission shall establish procedures for the auditing and 
     verification of qualifying contributions to ensure that such 
     contributions meet the requirements of this section.

     ``SEC. 513. CONTRIBUTION AND EXPENDITURE REQUIREMENTS.

       ``(a) General Rule.--A candidate for Senator meets the 
     requirements of this section if, during the election cycle of 
     the candidate, the candidate--

[[Page S7256]]

       ``(1) except as provided in subsection (b), accepts no 
     contributions other than--
       ``(A) qualifying contributions;
       ``(B) qualified small dollar contributions;
       ``(C) qualifying multicandidate political committee 
     contributions;
       ``(D) allocations from the Fund under section 522;
       ``(E) matching contributions under section 523;
       ``(F) enhanced matching contributions under section 524;
       ``(G) vouchers provided to the candidate under section 525;
       ``(H) subject to subsection (c), personal funds of the 
     candidate or of any immediate family member of the candidate 
     (other than funds received through qualified small dollar 
     contributions); and
       ``(I) subject to subsection (d), contributions from 
     individuals who are otherwise permitted to make contributions 
     under this Act, subject to the applicable limitations of 
     section 315, except that the aggregate amount of 
     contributions a participating candidate may accept from any 
     individual with respect to any election during the election 
     cycle may not exceed $1,000; and
       ``(2) makes no expenditures from any amounts other than 
     from--
       ``(A) qualifying contributions;
       ``(B) qualified small dollar contributions;
       ``(C) qualifying multicandidate political committee 
     contributions;
       ``(D) allocations from the Fund under section 522;
       ``(E) matching contributions under section 523;
       ``(F) enhanced matching contributions under section 524;
       ``(G) vouchers provided to the candidate under section 525;
       ``(H) subject to subsection (c), personal funds of the 
     candidate or of any immediate family member of the candidate 
     (other than funds received through qualified small dollar 
     contributions); and
       ``(I) subject to subsection (d), contributions from 
     individuals who are otherwise permitted to make contributions 
     under this Act, subject to the applicable limitations of 
     section 315, except that the aggregate amount of 
     contributions a participating candidate may accept from any 
     individual with respect to any election during the election 
     cycle may not exceed $1,000.
     For purposes of this subsection, a payment made by a 
     political party in coordination with a participating 
     candidate shall not be treated as a contribution to or as an 
     expenditure made by the participating candidate.
       ``(b) Contributions for Leadership PACs, etc.--A political 
     committee of a participating candidate which is not an 
     authorized committee of such candidate may accept 
     contributions other than contributions described in 
     subsection (a)(1) from any person if--
       ``(1) the aggregate contributions from such person for any 
     calendar year do not exceed $200; and
       ``(2) no portion of such contributions is disbursed in 
     connection with the campaign of the participating candidate.
       ``(c) Special Rules for Personal Funds.--A candidate who is 
     certified as a participating candidate may use personal funds 
     (including personal funds of any immediate family member of 
     the candidate) so long as--
       ``(1) the aggregate amount used with respect to the 
     election cycle (including any period of the cycle occurring 
     prior to the candidate's certification as a participating 
     candidate) does not exceed $50,000; and
       ``(2) the funds are used only for making direct payments 
     for the receipt of goods and services which constitute 
     authorized expenditures in connection with the election cycle 
     involved.
       ``(d) Requirements Relating to Subsequent Contributions and 
     Notification Requirements.--
       ``(1) Restriction on subsequent contributions.--
       ``(A) Prohibiting donor from making subsequent nonqualified 
     contributions during election cycle.--An individual who makes 
     a qualified small dollar contribution to a candidate with 
     respect to an election may not make any subsequent 
     contribution to such candidate with respect to the election 
     cycle which is not a qualified small dollar contribution.
       ``(B) Treatment of subsequent nonqualified contributions.--
     If, notwithstanding the prohibition described in subparagraph 
     (A), an individual who makes a qualified small dollar 
     contribution to a candidate with respect to an election makes 
     a subsequent contribution to such candidate with respect to 
     the election which is prohibited under subparagraph (A) 
     because it is not a qualified small dollar contribution, the 
     candidate may take one of the following actions:
       ``(i) Not later than 2 weeks after receiving the 
     contribution, the candidate may return the subsequent 
     contribution to the individual. In the case of a subsequent 
     contribution which is not a qualified small dollar 
     contribution because the contribution fails to meet the 
     requirements of paragraph (13)(C) of section 501 (relating to 
     the aggregate amount of qualified small dollar contributions 
     that may be made by an individual to a candidate), the 
     candidate may return an amount equal to the difference 
     between the amount of the subsequent contribution and the 
     amount described in such paragraph.
       ``(ii) The candidate may retain the subsequent 
     contribution, so long as not later than 2 weeks after 
     receiving the subsequent contribution, the candidate remits 
     to the Commission for deposit in the Freedom from Influence 
     Fund established by section 502 an amount equal to any 
     payments received by the candidate under this title which are 
     attributable to the qualified small dollar contribution made 
     by the individual involved.
       ``(C) No effect on ability to make multiple 
     contributions.--Nothing in this subsection may be construed 
     to prohibit an individual from making multiple qualified 
     small dollar contributions to any candidate or any number of 
     candidates, so long as each contribution meets the definition 
     of a qualified small dollar contribution under section 
     501(13).
       ``(2) Notification requirements for candidates.--
       ``(A) Notification.--Each authorized committee of a 
     candidate who seeks to be a participating candidate under 
     this title shall provide the following information in any 
     materials for the solicitation of contributions, including 
     any internet site through which individuals may make 
     contributions to the committee:
       ``(i) A statement that if the candidate is certified as a 
     participating candidate under this title, the candidate will 
     receive matching payments in an amount which is based on the 
     total amount of qualified small dollar contributions 
     received.
       ``(ii) A statement that a contribution which meets the 
     definition of a qualified small dollar contribution under 
     section 501(13) shall be treated as a qualified small dollar 
     contribution under this title.
       ``(iii) A statement that if a contribution is treated as 
     qualified small dollar contribution under this title, the 
     individual who makes the contribution may not make any 
     contribution to the candidate or the authorized committees of 
     the candidate during the election cycle which is not a 
     qualified small dollar contribution.
       ``(B) Alternative methods of meeting requirements.--An 
     authorized committee may meet the requirements of 
     subparagraph (A)--
       ``(i) by including the information described in paragraph 
     (1) in the receipt provided under section 512(b)(3) to a 
     person making a qualified small dollar contribution; or
       ``(ii) by modifying the information it provides to persons 
     making contributions which is otherwise required under title 
     III (including information it provides through the internet).
       ``(e) Exception.--Notwithstanding subsection (a), a 
     candidate shall not be treated as having failed to meet the 
     requirements of this section if any contributions that are 
     not qualified small dollar contributions, qualifying 
     contributions, qualifying multicandidate political committee 
     contributions, or contributions that meet the requirements of 
     subsection (b) and that are accepted before the date the 
     candidate files a statement of intent under section 511(a)(1) 
     are--
       ``(1) returned to the contributor; or
       ``(2) submitted to the Commission for deposit in the Fund.

     ``SEC. 514. CERTIFICATION.

       ``(a) In General.--Not later than 5 days after a candidate 
     for Senator files an affidavit under section 511(a)(4), the 
     Commission shall--
       ``(1) certify whether or not the candidate is a 
     participating candidate; and
       ``(2) notify the candidate of the Commission's 
     determination.
       ``(b) Revocation of Certification.--
       ``(1) In general.--The Commission may revoke a 
     certification under subsection (a) if--
       ``(A) a candidate fails to qualify to appear on the ballot 
     at any time after the date of certification; or
       ``(B) a candidate otherwise fails to comply with the 
     requirements of this title, including any regulatory 
     requirements prescribed by the Commission.
       ``(2) Repayment of benefits.--If certification is revoked 
     under paragraph (1), the candidate shall repay to the Fund an 
     amount equal to the value of benefits received under this 
     title plus interest (at a rate determined by the Commission) 
     on any such amount received.

                         ``Subtitle C--Benefits

     ``SEC. 521. BENEFITS FOR PARTICIPATING CANDIDATES.

       ``(a) In General.--For each election with respect to which 
     a candidate is certified as a participating candidate under 
     section 514, such candidate shall be entitled to--
       ``(1) an allocation from the Fund to make or obligate to 
     make expenditures with respect to such election, as provided 
     in section 522;
       ``(2) matching contributions, as provided in section 523;
       ``(3) enhanced matching contributions, as provided in 
     section 524; and
       ``(4) for the general election, vouchers for broadcasts of 
     political advertisements, as provided in section 525.
       ``(b) Restriction on Uses of Allocations From the Fund.--
     Allocations from the Fund received by a participating 
     candidate under section 522, matching contributions under 
     section 523, and enhanced matching contributions under 
     section 524 may only be used for campaign-related costs.
       ``(c) Remitting Allocations From the Fund.--
       ``(1) In general.--Not later than the date that is 180 days 
     after an election in which the participating candidate 
     appeared on the ballot, such participating candidate shall 
     remit to the Commission for deposit in the Fund an amount 
     equal to the lesser of--

[[Page S7257]]

       ``(A) the amount of money in the candidate's campaign 
     account; or
       ``(B) the sum of the allocations from the Fund received by 
     the candidate under section 522, the matching contributions 
     received by the candidate under section 523, and the enhanced 
     matching contributions under section 524.
       ``(2) Exceptions.--
       ``(A) Subsequent election.--In the case of a candidate who 
     qualifies to be on the ballot for a primary runoff election, 
     a general election, or a general runoff election, the amounts 
     described in paragraph (1) may be retained by the candidate 
     and used in such subsequent election.
       ``(B) Candidate seeking certification for next election 
     cycle.--Notwithstanding paragraph (1), a participating 
     candidate may withhold not more than $100,000 from the amount 
     required to be remitted under paragraph (1) if the candidate 
     files a signed affidavit with the Commission that the 
     candidate will seek certification as a participating 
     candidate with respect to the next election cycle, except 
     that the candidate may not use any portion of the amount 
     withheld until the candidate is certified as a participating 
     candidate with respect to that next election cycle. If the 
     candidate fails to seek certification as a participating 
     candidate prior to the last day of the qualifying period for 
     the next election cycle (as described in section 511), or if 
     the Commission notifies the candidate of the Commission's 
     determination that the candidate does not meet the 
     requirements for certification as a participating candidate 
     with respect to such cycle, the candidate shall immediately 
     remit to the Commission the amount withheld.

     ``SEC. 522. ALLOCATIONS FROM THE FUND.

       ``(a) In General.--The Commission shall make allocations 
     from the Fund under section 521(a)(1) to a participating 
     candidate--
       ``(1) in the case of amounts provided under subsection 
     (d)(1), after the date on which such candidate is certified 
     as a participating candidate under section 514;
       ``(2) in the case of a general election after--
       ``(A) the date of the certification of the results of the 
     primary election or the primary runoff election; or
       ``(B) in any case in which there is no primary election, 
     the date the candidate qualifies to be placed on the ballot; 
     and
       ``(3) in the case of a primary runoff election or a general 
     runoff election, after the certification of the results of 
     the primary election or the general election, as the case may 
     be.
       ``(b) Method of Payment.--The Commission shall distribute 
     funds available to participating candidates under this 
     section through the use of an electronic funds exchange or a 
     debit card.
       ``(c) Timing of Payment.--The Commission shall, in 
     coordination with the Secretary of the Treasury, take such 
     steps as may be necessary to ensure that the Secretary is 
     able to make payments under this section from the Treasury 
     not later than 2 business days after date of the applicable 
     certification as described in subsection (a).
       ``(d) Amounts.--
       ``(1) Primary election allocation; initial allocation.--
     Except as provided in paragraph (5), the Commission shall 
     make an allocation from the Fund for a primary election to a 
     participating candidate in an amount equal to 67 percent of 
     the base amount with respect to such participating candidate.
       ``(2) Primary runoff election allocation.--The Commission 
     shall make an allocation from the Fund for a primary runoff 
     election to a participating candidate in an amount equal to 
     25 percent of the amount the participating candidate was 
     eligible to receive under this section for the primary 
     election.
       ``(3) General election allocation.--Except as provided in 
     paragraph (5), the Commission shall make an allocation from 
     the Fund for a general election to a participating candidate 
     in an amount equal to the base amount with respect to such 
     candidate.
       ``(4) General runoff election allocation.--The Commission 
     shall make an allocation from the Fund for a general runoff 
     election to a participating candidate in an amount equal to 
     25 percent of the base amount with respect to such candidate.
       ``(5) Uncontested elections.--
       ``(A) In general.--In the case of a primary or general 
     election that is an uncontested election, the Commission 
     shall make an allocation from the Fund to a participating 
     candidate for such election in an amount equal to 25 percent 
     of the allocation which such candidate would be entitled to 
     under this section for such election if this paragraph did 
     not apply.
       ``(B) Uncontested election defined.--For purposes of this 
     subparagraph, an election is uncontested if not more than 1 
     candidate has campaign funds (including payments from the 
     Fund) in an amount equal to or greater than 10 percent of the 
     allocation a participating candidate would be entitled to 
     receive under this section for such election if this 
     paragraph did not apply.
       ``(e) Base Amount.--
       ``(1) In general.--Except as otherwise provided in this 
     subsection, the base amount for any candidate is an amount 
     equal to the sum of--
       ``(A) $750,000; plus
       ``(B) $150,000 for each congressional district in the State 
     with respect to which the candidate is seeking election.
       ``(2) Indexing.--In each even-numbered year after 2027--
       ``(A) each dollar amount under paragraph (1) shall be 
     increased by the percent difference between the price index 
     (as defined in section 315(c)(2)(A)) for the 12 months 
     preceding the beginning of such calendar year and the price 
     index for calendar year 2022;
       ``(B) each dollar amount so increased shall remain in 
     effect for the 2-year period beginning on the first day 
     following the date of the last general election in the year 
     preceding the year in which the amount is increased and 
     ending on the date of the next general election; and
       ``(C) if any amount after adjustment under subparagraph (A) 
     is not a multiple of $100, such amount shall be rounded to 
     the nearest multiple of $100.

     ``SEC. 523. MATCHING PAYMENTS FOR QUALIFIED SMALL DOLLAR 
                   CONTRIBUTIONS.

       ``(a) In General.--The Commission shall pay to each 
     participating candidate an amount equal to 600 percent of the 
     amount of qualified small dollar contributions received by 
     the candidate from individuals after the date on which such 
     candidate is certified under section 514.
       ``(b) Limitation.--The aggregate payments under subsection 
     (a) with respect to any candidate shall not exceed 400 
     percent of the allocation such candidate is entitled to 
     receive for such election under section 522 (determined 
     without regard to subsection (d)(5) thereof).
       ``(c) Time of Payment.--The Commission shall make payments 
     under this section not later than 2 business days after the 
     receipt of a report made under subsection (d).
       ``(d) Reports.--
       ``(1) In general.--Each participating candidate shall file 
     reports of receipts of qualified small dollar contributions 
     at such times and in such manner as the Commission may by 
     regulations prescribe.
       ``(2) Contents of reports.--Each report under this 
     subsection shall disclose--
       ``(A) the amount of each qualified small dollar 
     contribution received by the candidate; and
       ``(B) the name, address, and occupation of each individual 
     who made a qualified small dollar contribution to the 
     candidate.
       ``(3) Frequency of reports.--Reports under this subsection 
     shall be made no more frequently than--
       ``(A) once every month until the date that is 90 days 
     before the date of the election; and
       ``(B) once every week after the period described in 
     subparagraph (A) and until the date of the election.
       ``(4) Limitation on regulations.--The Commission may not 
     prescribe any regulations with respect to reporting under 
     this subsection with respect to any election after the date 
     that is 180 days before the date of such election.
       ``(e) Appeals.--The Commission shall provide a written 
     explanation with respect to any denial of any payment under 
     this section and shall provide the opportunity for review and 
     reconsideration within 5 business days of such denial.

     ``SEC. 524. ENHANCED MATCHING SUPPORT.

       ``(a) In General.--In addition to the payments made under 
     section 523, the Commission shall make an additional payment 
     to an eligible candidate under this section.
       ``(b) Eligibility.--A candidate is eligible to receive an 
     additional payment under this section if the candidate meets 
     each of the following requirements:
       ``(1) The candidate is on the ballot for the general 
     election for the office the candidate seeks.
       ``(2) The candidate is certified as a participating 
     candidate under this title with respect to the election.
       ``(3) During the enhanced support qualifying period, the 
     candidate receives qualified small dollar contributions in a 
     total amount of not less than the sum of $15,000 for each 
     congressional district in the State with respect to which the 
     candidate is seeking election.
       ``(4) During the enhanced support qualifying period, the 
     candidate submits to the Commission a request for the payment 
     which includes--
       ``(A) a statement of the number and amount of qualified 
     small dollar contributions received by the candidate during 
     the enhanced support qualifying period;
       ``(B) a statement of the amount of the payment the 
     candidate anticipates receiving with respect to the request; 
     and
       ``(C) such other information and assurances as the 
     Commission may require.
       ``(5) After submitting a request for the additional payment 
     under paragraph (4), the candidate does not submit any other 
     application for an additional payment under this title.
       ``(c) Amount.--
       ``(1) In general.--Subject to paragraph (2), the amount of 
     the additional payment made to an eligible candidate under 
     this subtitle shall be an amount equal to 50 percent of--
       ``(A) the amount of the payment made to the candidate under 
     section 523 with respect to the qualified small dollar 
     contributions which are received by the candidate during the 
     enhanced support qualifying period (as included in the 
     request submitted by the candidate under (b)(4)(A)); or
       ``(B) in the case of a candidate who is not eligible to 
     receive a payment under section 523 with respect to such 
     qualified small dollar contributions because the candidate 
     has reached the limit on the aggregate amount of payments 
     under section 523, the amount of the payment which would have 
     been made to

[[Page S7258]]

     the candidate under section 523 with respect to such 
     qualified small dollar contributions if the candidate had not 
     reached such limit.
       ``(2) Limit.--The amount of the additional payment 
     determined under paragraph (1) with respect to a candidate 
     may not exceed the sum of $150,000 for each congressional 
     district in the State with respect to which the candidate is 
     seeking election.
       ``(3) No effect on aggregate limit.--The amount of the 
     additional payment made to a candidate under this section 
     shall not be included in determining the aggregate amount of 
     payments made to a participating candidate with respect to an 
     election cycle under section 523.

     ``SEC. 525. POLITICAL ADVERTISING VOUCHERS.

       ``(a) In General.--The Commission shall establish and 
     administer a voucher program for the purchase of airtime on 
     broadcasting stations for political advertisements in 
     accordance with the provisions of this section.
       ``(b) Candidates.--The Commission shall only disburse 
     vouchers under the program established under subsection (a) 
     to participants certified pursuant to section 514 who have 
     agreed in writing to keep and furnish to the Commission such 
     records, books, and other information as it may require.
       ``(c) Amounts.--The Commission shall disburse vouchers to 
     each candidate certified under subsection (b) in an aggregate 
     amount equal to $100,000 multiplied by the number of 
     congressional districts in the State with respect to which 
     such candidate is running for office.
       ``(d) Use.--
       ``(1) Exclusive use.--Vouchers disbursed by the Commission 
     under this section may be used only for the purchase of 
     broadcast airtime for political advertisements relating to a 
     general election for the office of Senate by the 
     participating candidate to which the vouchers were disbursed, 
     except that--
       ``(A) a candidate may exchange vouchers with a political 
     party under paragraph (2); and
       ``(B) a political party may use vouchers only to purchase 
     broadcast airtime for political advertisements for generic 
     party advertising (as defined by the Commission in 
     regulations), to support candidates for State or local office 
     in a general election, or to support participating candidates 
     of the party in a general election for Federal office, but 
     only if it discloses the value of the voucher used as an 
     expenditure under section 315(d).
       ``(2) Exchange with political party committee.--
       ``(A) In general.--A participating candidate who receives a 
     voucher under this section may transfer the right to use all 
     or a portion of the value of the voucher to a committee of 
     the political party of which the individual is a candidate 
     (or, in the case of a participating candidate who is not a 
     member of any political party, to a committee of the 
     political party of that candidate's choice) in exchange for 
     money in an amount equal to the cash value of the voucher or 
     portion exchanged.
       ``(B) Continuation of candidate obligations.--The transfer 
     of a voucher, in whole or in part, to a political party 
     committee under this paragraph does not release the candidate 
     from any obligation under the agreement made under subsection 
     (b) or otherwise modify that agreement or its application to 
     that candidate.
       ``(C) Party committee obligations.--Any political party 
     committee to which a voucher or portion thereof is 
     transferred under subparagraph (A)--
       ``(i) shall account fully, in accordance with such 
     requirements as the Commission may establish, for the receipt 
     of the voucher; and
       ``(ii) may not use the transferred voucher or portion 
     thereof for any purpose other than a purpose described in 
     paragraph (1)(B).
       ``(D) Voucher as a contribution under feca.--If a candidate 
     transfers a voucher or any portion thereof to a political 
     party committee under subparagraph (A)--
       ``(i) the value of the voucher or portion thereof 
     transferred shall be treated as a contribution from the 
     candidate to the committee, and from the committee to the 
     candidate, for purposes of sections 302 and 304;
       ``(ii) the committee may, in exchange, provide to the 
     candidate only funds subject to the prohibitions, 
     limitations, and reporting requirements of title III of this 
     Act; and
       ``(iii) the amount, if identified as a `voucher exchange', 
     shall not be considered a contribution for the purposes of 
     sections 315 and 513.
       ``(e) Value; Acceptance; Redemption.--
       ``(1) Voucher.--Each voucher disbursed by the Commission 
     under this section shall have a value in dollars, redeemable 
     upon presentation to the Commission, together with such 
     documentation and other information as the Commission may 
     require, for the purchase of broadcast airtime for political 
     advertisements in accordance with this section.
       ``(2) Acceptance.--A broadcasting station shall accept 
     vouchers in payment for the purchase of broadcast airtime for 
     political advertisements in accordance with this section.
       ``(3) Redemption.--The Commission shall redeem vouchers 
     accepted by broadcasting stations under paragraph (2) upon 
     presentation, subject to such documentation, verification, 
     accounting, and application requirements as the Commission 
     may impose to ensure the accuracy and integrity of the 
     voucher redemption system.
       ``(4) Expiration.--
       ``(A) Candidates.--A voucher may only be used to pay for 
     broadcast airtime for political advertisements to be 
     broadcast before midnight on the day before the date of the 
     Federal election in connection with which it was issued and 
     shall be null and void for any other use or purpose.
       ``(B) Exception for political party committees.--A voucher 
     held by a political party committee may be used to pay for 
     broadcast airtime for political advertisements to be 
     broadcast before midnight on December 31st of the odd-
     numbered year following the year in which the voucher was 
     issued by the Commission.
       ``(5) Voucher as expenditure under feca.--The use of a 
     voucher to purchase broadcast airtime constitutes an 
     expenditure as defined in section 301(9)(A).
       ``(f) Definitions.--In this section:
       ``(1) Broadcasting station.--The term `broadcasting 
     station' has the meaning given that term by section 315(f)(1) 
     of the Communications Act of 1934.
       ``(2) Political party.--The term `political party' means a 
     major party or a minor party as defined in section 9002 (3) 
     or (4) of the Internal Revenue Code of 1986 (26 U.S.C. 9002 
     (3) or (4)).

                ``Subtitle D--Administrative Provisions

     ``SEC. 531. DUTIES OF THE FEDERAL ELECTION COMMISSION.

       ``(a) Duties and Powers.--
       ``(1) Administration.--The Commission shall have the power 
     to administer the provisions of this title and shall 
     prescribe regulations to carry out the purposes of this 
     title, including regulations--
       ``(A) to establish procedures for--
       ``(i) verifying the amount of valid qualifying 
     contributions with respect to a candidate;
       ``(ii) effectively and efficiently monitoring and enforcing 
     the limits on the raising of qualified small dollar 
     contributions;
       ``(iii) monitoring the raising of qualifying multicandidate 
     political committee contributions through effectively and 
     efficiently monitoring and enforcing the limits on individual 
     contributions to qualified accounts of multicandidate 
     political committees;
       ``(iv) effectively and efficiently monitoring and enforcing 
     the limits on the use of personal funds by participating 
     candidates;
       ``(v) monitoring the use of allocations from the Fund and 
     matching contributions under this title through audits or 
     other mechanisms; and
       ``(vi) the administration of the voucher program under 
     section 525; and
       ``(B) regarding the conduct of debates in a manner 
     consistent with the best practices of States that provide 
     public financing for elections.
       ``(2) Review of fair elections financing.--
       ``(A) In general.--After each general election for Federal 
     office, the Commission shall conduct a comprehensive review 
     of the Fair Elections financing program under this title, 
     including--
       ``(i) the maximum dollar amount of qualified small dollar 
     contributions under section 501(13);
       ``(ii) the maximum and minimum dollar amounts for 
     qualifying contributions under section 501(12);
       ``(iii) the number and value of qualifying contributions a 
     candidate is required to obtain under section 512 to qualify 
     for allocations from the Fund;
       ``(iv) the amount of allocations from the Fund that 
     candidates may receive under section 522;
       ``(v) the maximum amount of matching contributions a 
     candidate may receive under section 523;
       ``(vi) the maximum amount of enhanced matching 
     contributions a candidate may receive under section 524;
       ``(vii) the amount and usage of vouchers under section 525;
       ``(viii) the overall satisfaction of participating 
     candidates and the American public with the program; and
       ``(ix) such other matters relating to financing of Senate 
     campaigns as the Commission determines are appropriate.
       ``(B) Criteria for review.--In conducting the review under 
     subparagraph (A), the Commission shall consider the 
     following:
       ``(i) Qualifying contributions and qualified small dollar 
     contributions.--The Commission shall consider whether the 
     number and dollar amount of qualifying contributions required 
     and maximum dollar amount for such qualifying contributions 
     and qualified small dollar contributions strikes a balance 
     regarding the importance of voter involvement, the need to 
     assure adequate incentives for participating, and fiscal 
     responsibility, taking into consideration the number of 
     primary and general election participating candidates, the 
     electoral performance of those candidates, program cost, and 
     any other information the Commission determines is 
     appropriate.
       ``(ii) Review of program benefits.--The Commission shall 
     consider whether the totality of the amount of funds allowed 
     to be raised by participating candidates (including through 
     qualifying contributions and small dollar contributions), 
     allocations from the Fund under section 522, matching 
     contributions under section 523, enhanced matching 
     contributions under section 524, and vouchers under section 
     525 are sufficient for voters in each State to learn about 
     the candidates to cast an informed vote, taking into account 
     the historic amount of spending by winning candidates, media 
     costs, primary

[[Page S7259]]

     election dates, and any other information the Commission 
     determines is appropriate.
       ``(C) Recommendations for adjustment of amounts.--Based on 
     the review conducted under subparagraph (A), the Commission 
     shall make recommendations to Congress for any adjustment of 
     the following amounts:
       ``(i) The maximum dollar amount of qualified small dollar 
     contributions under section 501(13)(C).
       ``(ii) The maximum and minimum dollar amounts for 
     qualifying contributions under section 501(12)(A).
       ``(iii) The number and value of qualifying contributions a 
     candidate is required to obtain under section 512(a)(1).
       ``(iv) The base amount for candidates under section 522(d).
       ``(v) The maximum amount of matching contributions a 
     candidate may receive under section 523(b).
       ``(vi) The maximum amount of enhanced matching 
     contributions a candidate may receive under section 524(c).
       ``(vii) The dollar amount for vouchers under section 
     525(c).
       ``(D) Report.--Not later than March 30 following any 
     general election for Federal office, the Commission shall 
     submit a report to Congress on the review conducted under 
     subparagraph (A) and any recommendations developed under 
     subparagraph (C). Such report shall contain a detailed 
     statement of the findings, conclusions, and recommendations 
     of the Commission based on such review.
       ``(b) Reports.--Not later than March 30, 2026, and every 2 
     years thereafter, the Commission shall submit to the Senate 
     Committee on Rules and Administration a report documenting, 
     evaluating, and making recommendations relating to the 
     administrative implementation and enforcement of the 
     provisions of this title.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated such sums as are necessary to 
     carry out the purposes of this subtitle.

     ``SEC. 532. VIOLATIONS AND PENALTIES.

       ``(a) Civil Penalty for Violation of Contribution and 
     Expenditure Requirements.--If a candidate who has been 
     certified as a participating candidate under section 514 
     accepts a contribution or makes an expenditure that is 
     prohibited under section 513, the Commission shall assess a 
     civil penalty against the candidate in an amount that is not 
     more than 3 times the amount of the contribution or 
     expenditure. Any amounts collected under this subsection 
     shall be deposited into the Fund.
       ``(b) Repayment for Improper Use of Freedom From Influence 
     Fund.--
       ``(1) In general.--If the Commission determines that any 
     benefit made available to a participating candidate under 
     this title was not used as provided for in this title or that 
     a participating candidate has violated any of the dates for 
     remission of funds contained in this title, the Commission 
     shall so notify the candidate and the candidate shall pay to 
     the Fund an amount equal to--
       ``(A) the amount of benefits so used or not remitted, as 
     appropriate; and
       ``(B) interest on any such amounts (at a rate determined by 
     the Commission).
       ``(2) Other action not precluded.--Any action by the 
     Commission in accordance with this subsection shall not 
     preclude enforcement proceedings by the Commission in 
     accordance with section 309(a), including a referral by the 
     Commission to the Attorney General in the case of an apparent 
     knowing and willful violation of this title.''.

     SEC. 202. PROHIBITION ON JOINT FUNDRAISING COMMITTEES.

       Section 302(e) of the Federal Election Campaign Act of 1971 
     (52 U.S.C. 30102(e)) is amended by adding at the end the 
     following new paragraph:
       ``(6) No authorized committee of a participating candidate 
     (as defined in section 501) may establish a joint fundraising 
     committee with a political committee other than an authorized 
     committee of a candidate.''.

     SEC. 203. EXCEPTION TO LIMITATION ON COORDINATED EXPENDITURES 
                   BY POLITICAL PARTY COMMITTEES WITH 
                   PARTICIPATING CANDIDATES.

       Section 315(d) of the Federal Election Campaign Act of 1971 
     (52 U.S.C. 30116(d)) is amended--
       (1) in paragraph (3)(A), by striking ``in the case of'' and 
     inserting ``except as provided in paragraph (6), in the case 
     of''; and
       (2) by adding at the end the following new paragraph:
       ``(6)(A) The limitation under paragraph (3)(A) shall not 
     apply with respect to any expenditure from a qualified 
     political party-participating candidate coordinated 
     expenditure fund.
       ``(B) In this paragraph, the term `qualified political 
     party-participating candidate coordinated expenditure fund' 
     means a fund established by the national committee of a 
     political party, or a State committee of a political party, 
     including any subordinate committee of a State committee, for 
     purposes of making expenditures in connection with the 
     general election campaign of a candidate for election to the 
     office of Senator who is a participating candidate (as 
     defined in section 501), that only accepts qualified 
     coordinated expenditure contributions.
       ``(C) In this paragraph, the term `qualified coordinated 
     expenditure contribution' means, with respect to the general 
     election campaign of a candidate for election to the office 
     of Senator who is a participating candidate (as defined in 
     section 501), any contribution (or series of contributions)--
       ``(i) which is made by an individual who is not prohibited 
     from making a contribution under this Act; and
       ``(ii) the aggregate amount of which does not exceed $500 
     per election.''.

     TITLE III--RESPONSIBILITIES OF THE FEDERAL ELECTION COMMISSION

     SEC. 301. PETITION FOR CERTIORARI.

       Section 307(a)(6) of the Federal Election Campaign Act of 
     1971 (52 U.S.C. 30107(a)(6)) is amended by inserting 
     ``(including a proceeding before the Supreme Court on 
     certiorari)'' after ``appeal''.

     SEC. 302. ELECTRONIC FILING OF FEC REPORTS.

       Section 304(a)(11) of the Federal Election Campaign Act of 
     1971 (52 U.S.C. 30104(a)(11)) is amended--
       (1) in subparagraph (A), by striking ``under this Act--'' 
     and all that follows and inserting ``under this Act shall be 
     required to maintain and file such designation, statement, or 
     report in electronic form accessible by computers.'';
       (2) in subparagraph (B), by striking ``48 hours'' and all 
     that follows through ``filed electronically)'' and inserting 
     ``24 hours''; and
       (3) by striking subparagraph (D).

                      TITLE IV--REVENUE PROVISIONS

     SEC. 401. FREEDOM FROM INFLUENCE FUND REVENUE.

       (a) In General.--The Internal Revenue Code of 1986 is 
     amended by inserting after chapter 36 the following new 
     chapter:

 ``CHAPTER 37--TAX ON PAYMENTS PURSUANT TO CERTAIN GOVERNMENT CONTRACTS

``Sec. 4501. Imposition of tax.

     ``SEC. 4501. IMPOSITION OF TAX.

       ``(a) Tax Imposed.--There is hereby imposed on any payment 
     made to a qualified person pursuant to a contract with the 
     Government of the United States a tax equal to 0.50 percent 
     of the amount paid.
       ``(b) Limitation.--The aggregate amount of tax imposed per 
     contract under subsection (a) for any calendar year shall not 
     exceed $500,000.
       ``(c) Qualified Person.--For purposes of this section, the 
     term `qualified person' means any person which--
       ``(1) is not a State or local government, a foreign nation, 
     or an organization described in section 501(c)(3) which is 
     exempt from taxation under section 501(a), and
       ``(2) has a contract with the Government of the United 
     States with a value in excess of $10,000,000.
       ``(d) Payment of Tax.--The tax imposed by this section 
     shall be paid by the person receiving such payment.
       ``(e) Use of Revenue Generated by Tax.--It is the sense of 
     the Senate that amounts equivalent to the revenue generated 
     by the tax imposed under this chapter should be appropriated 
     for the financing of a Freedom From Influence Fund and used 
     for the public financing of Senate elections.''.
       (b) Conforming Amendment.--The table of chapters of the 
     Internal Revenue Code of 1986 is amended by inserting after 
     the item relating to chapter 36 the following:

     ``Chapter 37--Tax on Payments Pursuant to Certain Government 
                              Contracts''.

       (c) Effective Date.--The amendments made by this section 
     shall apply to contracts entered into after the date of the 
     enactment of this Act.

                   TITLE V--MISCELLANEOUS PROVISIONS

     SEC. 501. SEVERABILITY.

       If any provision of this Act or amendment made by this Act, 
     or the application of a provision or amendment to any person 
     or circumstance, is held to be unconstitutional, the 
     remainder of this Act and amendments made by this Act, and 
     the application of the provisions and amendment to any person 
     or circumstance, shall not be affected by the holding.

     SEC. 502. EFFECTIVE DATE.

       (a) In General.--Except as may otherwise be provided in 
     this Act and in the amendments made by this Act, this Act and 
     the amendments made by this Act shall apply with respect to 
     elections occurring during 2028 or any succeeding year, 
     without regard to whether or not the Federal Election 
     Commission has promulgated the final regulations necessary to 
     carry out this Act and the amendments made by this Act by the 
     deadline set forth in subsection (b).
       (b) Deadline for Regulations.--Not later than June 30, 
     2026, the Federal Election Commission shall promulgate such 
     regulations as may be necessary to carry out this Act and the 
     amendments made by this Act.
                                 ______