# 119-hr-3512: Tackling Predatory Litigation Funding Act

119-hr-3512, Tackling Predatory Litigation Funding Act, is a 119th Congress bill sponsored by Rep. Hern, Kevin [R-OK-1] (R-OK); status introduced; PRIA reads it as touching household money (as of 2026-09-21).

- Canonical: https://policyrisk.com/legislation/119-hr-3512
- As of: 2026-09-21
- Plain-text twin of the page above; the HTML and this file carry the same facts.

## Facts
- Bill: 119-hr-3512
- Congress: 119
- Title: Tackling Predatory Litigation Funding Act
- Status: introduced
- Introduced: 2025-05-20
- Sponsor: Rep. Hern, Kevin [R-OK-1] (R-OK)
- Cosponsors: 39
- Policy area: Taxation
- Touches household money: yes
- Last recorded action: 2026-09-21

## Summary

**A new tax and mandatory withholding on third-party litigation funding.** The bill would create a tax on profits that third-party funders collect from litigation financing and require parties or affiliated law firms to withhold part of settlement or judgment payouts when funding is involved. - Third-party funders would face a tax on "qualified litigation proceeds" equal to the top individual tax rate plus 3.8 percentage points. Pass-through entities like partnerships and S corporations would pay the tax at the entity level. - Named parties and affiliated law firms would need to withhold 50% of that tax amount from payments to a funder. Withheld amounts would be a credit to the funder's tax return and failure to withhold would expose payers to penalties. - The bill carves out small or limited-repayment deals. It also amends tax rules to exclude litigation-financing arrangements from the capital-asset definition and adds a special rule treating qualified litigation proceeds outside gross income.

## Cosponsors (39)

- Rep. Feenstra, Randy [R-IA-4] (R-IA), 2025-05-20T00:00:00.000Z
- Rep. Davidson, Warren [R-OH-8] (R-OH), 2025-05-29T00:00:00.000Z
- Rep. Kelly, Mike [R-PA-16] (R-PA), 2025-05-29T00:00:00.000Z
- Rep. Malliotakis, Nicole [R-NY-11] (R-NY), 2025-06-02T00:00:00.000Z
- Rep. Hinson, Ashley [R-IA-2] (R-IA), 2025-06-02T00:00:00.000Z
- Rep. Tenney, Claudia [R-NY-24] (R-NY), 2025-06-02T00:00:00.000Z
- Rep. LaHood, Darin [R-IL-16] (R-IL), 2025-06-05T00:00:00.000Z
- Rep. Yakym, Rudy [R-IN-2] (R-IN), 2025-06-05T00:00:00.000Z
- Rep. McCormick, Richard [R-GA-7] (R-GA), 2025-06-09T00:00:00.000Z
- Rep. Kustoff, David [R-TN-8] (R-TN), 2025-06-09T00:00:00.000Z
- Rep. Moore, Tim [R-NC-14] (R-NC), 2025-06-12T00:00:00.000Z
- Rep. Harrigan, Pat [R-NC-10] (R-NC), 2025-06-24T00:00:00.000Z
- Rep. Rouzer, David [R-NC-7] (R-NC), 2025-07-25T00:00:00.000Z
- Rep. Edwards, Chuck [R-NC-11] (R-NC), 2025-09-26T00:00:00.000Z
- Rep. Murphy, Gregory F. [R-NC-3] (R-NC), 2025-11-18T00:00:00.000Z
- Rep. Buchanan, Vern [R-FL-16] (R-FL), 2025-11-18T00:00:00.000Z
- Rep. Miller, Carol D. [R-WV-1] (R-WV), 2026-01-12T00:00:00.000Z
- Rep. Smith, Adrian [R-NE-3] (R-NE), 2026-01-22T00:00:00.000Z
- Rep. Gooden, Lance [R-TX-5] (R-TX), 2026-02-13T00:00:00.000Z
- Rep. Patronis, Jimmy [R-FL-1] (R-FL), 2026-03-16T00:00:00.000Z
- Rep. Webster, Daniel [R-FL-11] (R-FL), 2026-04-23T00:00:00.000Z
- Rep. Garbarino, Andrew R. [R-NY-2] (R-NY), 2026-05-04T00:00:00.000Z
- Rep. Grothman, Glenn [R-WI-6] (R-WI), 2026-05-04T00:00:00.000Z
- Rep. Moore, Blake D. [R-UT-1] (R-UT), 2026-05-21T00:00:00.000Z
- Rep. Lawler, Michael [R-NY-17] (R-NY), 2026-06-04T00:00:00.000Z
- Rep. Flood, Mike [R-NE-1] (R-NE), 2026-06-04T00:00:00.000Z
- Rep. Carey, Mike [R-OH-15] (R-OH), 2026-06-08T00:00:00.000Z
- Rep. McDowell, Addison P. [R-NC-6] (R-NC), 2026-06-24T00:00:00.000Z
- Rep. Downing, Troy [R-MT-2] (R-MT), 2026-06-24T00:00:00.000Z
- Rep. Mann, Tracey [R-KS-1] (R-KS), 2026-06-24T00:00:00.000Z
- Rep. Barrett, Tom [R-MI-7] (R-MI), 2026-06-29T00:00:00.000Z
- Rep. Goldman, Craig A. [R-TX-12] (R-TX), 2026-06-30T00:00:00.000Z
- Rep. Pfluger, August [R-TX-11] (R-TX), 2026-06-30T00:00:00.000Z
- Rep. Hudson, Richard [R-NC-9] (R-NC), 2026-07-14T00:00:00.000Z
- Rep. Biggs, Sheri [R-SC-3] (R-SC), 2026-07-14T00:00:00.000Z
- Rep. Harris, Andy [R-MD-1] (R-MD), 2026-07-14T00:00:00.000Z
- Rep. Mackenzie, Ryan [R-PA-7] (R-PA), 2026-07-14T00:00:00.000Z
- Rep. Schmidt, Derek [R-KS-2] (R-KS), 2026-09-08T00:00:00.000Z
- Rep. Van Orden, Derrick [R-WI-3] (R-WI), 2026-09-08T00:00:00.000Z

## Provisions PRIA read

- New tax and withholding for litigation funders: mixed, medium. If enacted, third‑party lawsuit funders would face a special tax on profits from financing cases. The rate would equal the top individual income tax rate for the year plus 3.8 percentage points, applied at the entity level for pass‑throughs. You could not offset gains with losses from other deals i…

## Related bills

- 119-hr-703: Main Street Tax Certainty Act
- 119-hr-425: Repealing Big Brother Overreach Act
- 119-hr-1628: 761st Tank Battalion Congressional Gold Medal Act
- 119-hres-719: Honoring the life and legacy of Charles Charlie James Kirk.
- 119-hr-1502: North Platte Canteen Congressional Gold Medal Act
- 119-hr-1422: Enhanced Iran Sanctions Act of 2025

## Sources
- [119-hr-3512 on Congress.gov](https://www.congress.gov/bill/119th-congress/house-bill/3512)

## Related
- [119-hr-703: Main Street Tax Certainty Act](https://policyrisk.com/legislation/119-hr-703)
- [119-hr-425: Repealing Big Brother Overreach Act](https://policyrisk.com/legislation/119-hr-425)
- [119-hr-1628: 761st Tank Battalion Congressional Gold Medal Act](https://policyrisk.com/legislation/119-hr-1628)
- [119-hres-719: Honoring the life and legacy of Charles Charlie James Kirk.](https://policyrisk.com/legislation/119-hres-719)
- [119-hr-1502: North Platte Canteen Congressional Gold Medal Act](https://policyrisk.com/legislation/119-hr-1502)
- [119-hr-1422: Enhanced Iran Sanctions Act of 2025](https://policyrisk.com/legislation/119-hr-1422)
- [All bills in Congress](https://policyrisk.com/legislation)

Source: PRIA, https://policyrisk.com/legislation/119-hr-3512 (as of 2026-09-21).