Litigation Funding Transparency Act of 2026

[Congressional Bills 119th Congress] [From the U.S. Government Publishing Office] [S. 3826 Introduced in Senate (IS)] <DOC> 119th CONGRESS 2d Session S. 3826 To amend title 28, United States Code, to increase transparency and oversight of third-party litigation funding in certain actions, and for other purposes. _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES February 11, 2026 Mr. Grassley (for himself, Mr. Tillis, Mr. Kennedy, and Mr. Cornyn) introduced the following bill; which was read twice and referred to the Committee on the Judiciary _______________________________________________________________________ A BILL To amend title 28, United States Code, to increase transparency and oversight of third-party litigation funding in certain actions, 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 ``Litigation Funding Transparency Act of 2026''. SEC. 2. TRANSPARENCY AND OVERSIGHT OF THIRD-PARTY LITIGATION FUNDING IN CLASS AND MASS ACTIONS. (a) In General.--Chapter 115 of title 28, United States Code, is amended by adding at the end the following: ``Sec. 1747. Third-party litigation funding disclosure ``(a) Definitions.--In this section: ``(1) Class action.--The term `class action' has the meaning given the term in section 1711. ``(2) Commercial enterprise.--The term `commercial enterprise'-- ``(A) means any entity formed for the ongoing conduct of lawful business; and ``(B) does not include any entity that, in a covered civil action, has a right or expectation of payment based on any activity, right, or interest described in subparagraph (A) or (B) of paragraph (8) that is limited to-- ``(i) the repayment of the principal of a loan; ``(ii) the repayment of the principal of a loan plus interest that does not exceed the greater of 10 percent or a rate 3 times the annual aver