Protecting TPLF From Abuse Act
Sponsored By: Representative Issa, Darrell [R-CA-48]
Introduced
Summary
Disclosure of third-party litigation funding would be required in civil cases, forcing parties and counsel to name anyone who has a legal right to payment tied to a case’s outcome. Courts would get in‑camera access to funding contracts and may allow protective redactions for donors or members.
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- Parties and counsel would have to disclose any person with a legal right to payments from a case and produce funding agreements for in‑camera review. They must supplement or correct disclosures if they become materially incomplete and meet timing rules that include a 10‑day deadline after an agreement or the time for initial disclosures under Federal Rule of Civil Procedure 26(a)(1).
- Funders, lenders, and donors face specific exceptions. Pure repayment of principal, repayment with modest interest (not exceeding the higher of 10% or three times the annual average 30‑year Treasury yield), attorney‑fee reimbursements, and grants are excluded, and donor or member identities can be protected unless those people also have a legal right to payment.
- Courts gain a formal process to inspect funding deals and to issue protective orders or redactions, and the statute says disclosures do not automatically become admissible evidence or change other discovery rules except as stated.
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Bill Overview
Analyzed Economic Effects
1 provisions identified: 0 benefits, 0 costs, 1 mixed.
New disclosure rules for litigation funders
If enacted, parties and lawyers in federal civil cases would have to put in writing anyone (other than counsel) who has a legal right to get money or other value tied to the case outcome. They would give that identity to the court and to all other named parties. Any agreement creating that payment right would be shown privately to the judge for in‑camera review, and then provided to the other named parties for inspection unless the judge limits sharing. The bill would not require disclosure for persons whose right is only repayment of loan principal; repayment of principal plus interest capped at the higher of 10% or three times last year's average 30‑year Treasury yield; reimbursement of attorney fees paid to counsel of record; or reimbursement of a grant. Donor, member, and associate names could remain private unless those people themselves have a contingent payment right and are not exempt. Disclosures would be due no later than the later of: 10 days after the agreement is signed; the time for initial Rule 26(a)(1) disclosures; or a time set by the court. A party or lawyer would have to promptly supplement or correct any disclosure that becomes materially incomplete or incorrect. This would apply to any civil action pending on or started after the date of enactment.
Sponsors & CoSponsors
Sponsor
Issa, Darrell [R-CA-48]
CA • R
Cosponsors
Fitzgerald
WI • R
Sponsored 1/12/2026
Rep. Baumgartner, Michael [R-WA-5]
WA • R
Sponsored 1/12/2026
Roll Call Votes
No roll call votes available for this bill.
View on Congress.gov