2 versions

TransformativeWhat changed in REPORTED IN HOUSEcompared with INTRODUCED IN HOUSE (Jan 15, 2025)

A complete substitute amendment. v2 replaces the outright repeal of the Corporate Transparency Act with targeted amendments that limit its beneficial ownership reporting requirements exclusively to foreign persons and foreign-owned entities. It also mandates the deletion of data collected from non-foreign individuals and entities, fundamentally altering the bill's original purpose.

H.R. 425119th CongressIntroduced Jan 15, 2025

Repealing Big Brother Overreach Act

Reported To HouseFinance and Financial SectorMajor

View bill text

Sponsor: Rep. Davidson, Warren [R-OH-8]
Committees: Financial Services Committee (primary)
Last action: Jun 18, 2026

Bottom line

The bill repeals the domestic beneficial ownership reporting requirements of the Corporate Transparency Act, narrowing its scope to foreign entities and mandating the deletion of previously collected domestic data.

What it actually does

This bill amends the Corporate Transparency Act (CTA) to limit beneficial ownership reporting requirements solely to foreign beneficial owners and foreign reporting companies. It mandates that the Financial Crimes Enforcement Network (FinCEN) delete all beneficial ownership information previously collected from non-foreign individuals and entities within 90 days of the bill's enactment. Essentially, it repeals the domestic beneficial ownership reporting requirements of the CTA.

Proponents argue

Proponents argue that the Corporate Transparency Act imposes an undue and costly burden on millions of small businesses and individuals in the United States, representing an overreach of government power into private financial affairs. They contend that focusing beneficial ownership reporting solely on foreign entities is sufficient for combating illicit finance without infringing on the privacy and economic freedom of law-abiding American entrepreneurs.

Opponents contend

Opponents would argue that repealing the domestic provisions of the CTA would significantly weaken critical efforts to combat money laundering, terrorist financing, tax evasion, and other illicit activities by making it easier for anonymous shell companies to hide true ownership within the U.S. They assert that comprehensive beneficial ownership data is an essential tool for law enforcement and national security agencies to track and disrupt criminal networks.

The bill is exceptionally short and clearly written, allowing for quick and complete comprehension by any informed reader.

Section 2(a)(1) and (2)

Restricting Beneficial Ownership Reporting to Foreign Entities

prominently featuredstraightforward

This provision modifies the existing Corporate Transparency Act by inserting the word 'foreign' before 'beneficial' and 'beneficial ownership' wherever these terms appear in the relevant section of title 31, United States Code. This change explicitly limits the scope of beneficial ownership reporting requirements to only 'foreign beneficial owners' and 'foreign reporting companies,' thereby exempting U.S. domestic entities and individuals from these obligations.

GroupImpactMechanismScale

GroupU.S. corporations, limited liability companies, and similar entitiesImpactExempted from beneficial ownership reporting requirements, reducing compliance burden.MechanismAmendment of 31 U.S. Code § 5336.ScaleMillions of U.S. businesses.

GroupU.S. individuals who are beneficial ownersImpactExempted from beneficial ownership reporting requirements, increasing privacy.MechanismAmendment of 31 U.S. Code § 5336.ScaleMillions of U.S. individuals.

GroupFinancial Crimes Enforcement Network (FinCEN)ImpactReduced data collection scope and administrative burden related to domestic entities.MechanismChange in statutory mandate.ScaleSignificant reduction in scope of operations.

Supporters argue

Supporters argue this change alleviates the significant compliance burden placed on millions of legitimate U.S. small businesses, which they contend are not the primary targets of illicit finance investigations. They believe the original CTA was an overreach that disproportionately affected law-abiding American entrepreneurs and that focusing on foreign entities is sufficient.

Critics contend

Opponents contend that this amendment would create a massive loophole for illicit actors, including those operating within the U.S., to hide their identities and financial activities behind anonymous shell companies. They argue that domestic beneficial ownership data is critical for law enforcement to track money laundering, tax evasion, and other crimes.

Tradeoffs

This provision balances the desire to reduce regulatory burdens on domestic businesses against the need for comprehensive data to combat illicit financial activities and national security threats, explicitly prioritizing the former for U.S. entities.

Section 2(b)

Mandated Deletion of Domestic Beneficial Ownership Data

prominently featuredstraightforward

This provision requires the Financial Crimes Enforcement Network (FinCEN) to delete all beneficial ownership information collected under the original Corporate Transparency Act within 90 days of the bill's enactment. This deletion specifically applies to data pertaining to individuals who are not 'foreign beneficial owners' and entities that are not 'foreign reporting companies' as defined by the newly amended law.

About this analysis. AI-Generated from the official bill text and available committee reports. Gaps in available data are noted explicitly. Verify important details with the official Congress.gov record.

TransformativeWhat changed in REPORTED IN HOUSEcompared with INTRODUCED IN HOUSE (Jan 15, 2025)

See full diff

H.R. 425119th CongressIntroduced Jan 15, 2025

Repealing Big Brother Overreach Act

Reported To HouseFinance and Financial SectorMajor

View bill text

Sponsor: Rep. Davidson, Warren [R-OH-8]
Committees: Financial Services Committee (primary)
Last action: Jun 18, 2026

Bottom line

What it actually does

Proponents argue

Opponents contend

The bill is exceptionally short and clearly written, allowing for quick and complete comprehension by any informed reader.

Section 2(a)(1) and (2)

Restricting Beneficial Ownership Reporting to Foreign Entities

prominently featuredstraightforward

GroupImpactMechanismScale

Supporters argue

Critics contend

Tradeoffs

Section 2(b)

Mandated Deletion of Domestic Beneficial Ownership Data

prominently featuredstraightforward