Honest Elections and Campaign, No Gain Act
- Bill Number
- H.R. 4786
- Origin Chamber
- House
- Congress
- 119th Congress, Session 1
- Policy Area
- Government Operations and Politics
- Status
- Introduced
- Latest Action
- 2025-07-29: Referred to the Committee on the Judiciary, and in addition to the Committee on House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- Last Updated
- 2026-03-31T15:31:51Z
AI-Generated Summary
Purpose of the Legislation
The "Honest Elections and Campaign, No Gain Act" (H.R. 4786) aims to prevent candidates for federal office from personally profiting from leftover campaign funds after an election. It requires timely spending or redistribution of unspent money from authorized committees (groups directly tied to a candidate's campaign) and leadership PACs (political action committees run by candidates to support other politicians), while linking compliance to rules on lobbying and foreign influence.
Key Provisions
- Disbursement Requirement (New Section 303A of the Federal Election Campaign Act of 1971):
- Candidates' authorized committees and leadership PACs must fully disburse (spend or redistribute) any remaining funds within a 2-year period starting the day after the deadline for qualifying for the next election for the same office.
- Disbursement must happen sooner if the candidate begins lobbying (influencing government officials on behalf of others) or acts as an agent for a foreign principal (representing foreign entities in the U.S.).
- Exception: The rule does not apply if the candidate qualifies to run for the next election before the 2-year period starts.
- Allowed Uses of Funds:
- First, pay any outstanding debts from campaign operations.
- Remaining funds can only be: returned to original donors, donated to tax-exempt charities (under IRS section 170(c)), or transferred without limit to national, state, or local political party committees.
- Restrictions on Payments to Relatives:
- Funds cannot go to the candidate's relatives (broadly defined to include immediate family, in-laws, step-relations, and half-siblings) unless paying a legitimate campaign debt, and such payments must be reported if over $200.
- Certification Requirements:
- Under the Lobbying Disclosure Act of 1995, former candidates registering as lobbyists must certify under penalty of perjury that their committees and PACs comply with the disbursement rules.
- Under the Foreign Agents Registration Act of 1938, former candidates registering as foreign agents must provide the same certification.
- Effective Date:
- Applies to the November 2026 federal general election and all subsequent elections; certifications start for registrations filed after that election.
Significant Changes to Existing Law
- Amendments to Federal Election Campaign Act (FECA): Adds a new section mandating post-election fund disbursement, with strict limits on uses, overriding prior allowances for broader spending of contributions (e.g., section 313(a) now subjects contributions to these rules).
- Amendments to Lobbying and Foreign Agents Laws: Introduces mandatory compliance certifications for former candidates, expanding registration requirements to include election fund disclosures—previously, these acts focused only on lobbying or foreign activities without tying them to campaign finance.
- These changes close loopholes allowing candidates to retain or convert campaign funds for personal use, especially post-election when entering influence-related roles.
Potential Impacts
- On Government Agencies: The Federal Election Commission (FEC) will likely see increased enforcement duties for monitoring disbursements and reports. State election officials may handle more qualification filings to trigger exceptions.
- On Citizens: Enhances transparency in campaign finance by ensuring leftover funds benefit the public (via charities or parties) or return to donors, potentially reducing perceptions of "pay-to-play" politics where donors gain influence through retained funds.
- On International Relations: Indirectly affects U.S. foreign policy by scrutinizing former candidates acting as foreign agents, promoting accountability and possibly deterring foreign influence via campaign ties, though it does not directly alter diplomatic processes.
Main Stakeholders Affected
- Candidates for Federal Office: Directly impacted, as they must oversee rapid fund disbursement or face penalties; running for re-election provides a key workaround.
- Campaign Committees and Leadership PACs: Required to restructure finances post-election, limiting flexibility in fund use.
- Donors and Political Parties: Donors may get refunds; parties benefit from unlimited transfers of excess funds.
- Lobbyists and Foreign Agents: Former candidates in these roles face added certification burdens, with non-compliance risking perjury charges.
- Charities and Nonprofits: Potential recipients of donated funds, increasing available resources for public good.
- Regulators (FEC, DOJ): Gain tools for oversight but may need resources for enforcement.
Notable Legal, Constitutional, or Political Implications
- Legal: Strengthens campaign finance enforcement by integrating FECA with lobbying and foreign agent laws, with perjury penalties for false certifications ensuring accountability. It may lead to more litigation over what counts as a "lobbying contact" or "foreign principal."
- Constitutional: Could face challenges under the First Amendment (free speech and association), as restricting PAC funds might be argued to limit political expression; however, it targets post-election windfalls rather than core campaigning, aligning with precedents like Buckley v. Valeo (upholding contribution limits to prevent corruption).
- Political: Promotes ethics in politics by curbing personal financial gains from campaigns, potentially boosting public trust but drawing criticism from incumbents for complicating re-election funding. Bipartisan sponsorship (Democrats and Republicans) suggests broad anti-corruption appeal, though it may disproportionately affect long-serving politicians with established PACs.
This summary was generated by AI and may contain inaccuracies. Refer to the official source document for the authoritative text.
Sponsor
Cosponsors (4)
Rep. Bilirakis, Gus M. [R-FL-12], Rep. Raskin, Jamie [D-MD-8], Rep. Johnson, Henry C. "Hank" [D-GA-4], Rep. Tonko, Paul [D-NY-20]
Recent Actions
- 2025-07-29: Referred to the Committee on the Judiciary, and in addition to the Committee on House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-07-29: Referred to the Committee on the Judiciary, and in addition to the Committee on House Administration, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
- 2025-07-29: Introduced in House
- 2025-07-29: Introduced in House
Bill Versions
- Honest Elections and Campaign, No Gain Act — issued 2025-07-29 — PDF (8 pages)