Campaign Funds Integrity Act of 2026
Officially: “Campaign Funds Integrity Act of 2026” Read the full text
What it does
Read it in plain language
1Short title
This section would let the Act be called the Campaign Funds Integrity Act of 2026.
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1. Short title This Act may be cited as the Campaign Funds Integrity Act of 2026 .
2Prohibition on use of campaign funds for certain financial transactions
This section would rewrite section 324 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30126) in full. Under the new text, a candidate, an authorized committee, or any other political committee could not use campaign funds to take part in a prediction market or event contract, including any contract or instrument whose value depends on the outcome of an election, a legislative action, a regulatory decision, or another political or economic event. A violation would be handled under the existing enforcement procedures and civil penalties in section 309 of the Act. A person who knowingly and willfully violated the rule could also face criminal penalties under section 309(d), which could include fines under title 18 of the United States Code, imprisonment of not more than 5 years, or both. The Federal Election Commission could refer apparent knowing and willful violations to the Department of Justice for criminal prosecution under section 309(a)(5)(C). The Commission would be required to issue regulations to carry out the section, including guidance on which financial instruments are permitted and what compliance requires. The rule would not stop campaign funds from being used for deposits in insured depository institutions, investments in diversified mutual funds or exchange-traded funds, or other low-risk financial instruments that the Commission allows. For purposes of the section, campaign funds would mean contributions or donations received by a candidate, an authorized committee, or another political committee subject to the Act, and a prediction market or event contract would mean any agreement, contract, transaction, or instrument that pays out based on the outcome of a future event, including a political, economic, or regulatory event. This section and the amendment it makes would take effect 120 days after the Act is enacted.
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2. Prohibition on use of campaign funds for certain financial transactions (a) In general Section 324 of the Federal Election Campaign Act of 1971 ( 52 U.S.C. 30126 ) is amended to read as follows: 324. Prohibition on use of campaign funds for certain speculative financial transactions (a) Prohibition A candidate, authorized committee, or other political committee shall not use campaign funds to participate in any prediction market or event contract, including any contract or instrument whose value is derived from the outcome of an election, legislative action, regulatory decision, or other political or economic event. (b) Enforcement and penalties (1) In general Any violation of this section shall be considered pursuant to the enforcement procedures under section 309, including with respect to the civil penalties authorized under such section. (2) Knowing and willful violations Any person who knowingly and willfully commits a violation of this section shall be subject to criminal penalties under section 309(d), which may include fines under title 18, United States Code, imprisonment of not more than 5 years, or both. (c) Referral to Department of Justice The Federal Election Commission may refer apparent knowing and willful violations to the U.S. Department of Justice for criminal prosecution in accordance with section 309(a)(5)(C). (d) Regulations The Federal Election Commission shall promulgate regulations to carry out this section, including guidance on permissible financial instruments and compliance requirements. (e) Rule of construction Nothing in this section shall be construed to prohibit the use of campaign funds for— (1) deposits in insured depository institutions; (2) investments in diversified mutual funds or exchange-traded funds; or (3) other low-risk financial instruments as may be permitted by the Commission. (f) Definitions For purposes of this section: (1) The term campaign funds means contributions or donations received by a candidate, authorized committee, or other political committee subject to this Act. (2) The term prediction market or event contract means any agreement, contract, transaction, or instrument that provides for payment based on the outcome of a future event, including political, economic, or regulatory events. . (b) Effective date This section and the amendment made by this section shall take effect on the date that is 120 days after the date of the enactment of this Act.
Where it is
In the House.