Campaign Funds Integrity Act of 2026
- Sponsor
- Rep. Torres, Ritchie [D-NY-15]
- Committees
- Committee on House Administration (primary)
- Last action
- May 19, 2026
Bottom line
The bill aims to prevent the speculative use of campaign funds in markets tied to future political or economic outcomes, enhancing campaign finance integrity.
What it actually does
This bill prohibits candidates, authorized committees, and other political committees from using campaign funds to participate in prediction markets or event contracts, which are financial instruments whose value is tied to the outcome of political, economic, or regulatory events. It amends the Federal Election Campaign Act of 1971 to establish this prohibition, outlines enforcement procedures and penalties for violations, and directs the Federal Election Commission (FEC) to issue regulations and guidance.
Proponents argue
Supporters argue that this bill is crucial for maintaining the integrity and public trust in political campaigns by ensuring that campaign contributions are used for legitimate political activities rather than for speculative financial gambling. They contend it prevents potential conflicts of interest, avoids the appearance of impropriety, and protects donor funds from risky investments that could undermine the democratic process.
Opponents contend
Critics might argue that while the intent is understandable, the bill could be seen as an overreach into how campaigns manage their finances, potentially limiting their ability to make certain investment decisions. Some might also contend that existing campaign finance laws are sufficient to address misuse of funds, making this specific prohibition unnecessary or overly prescriptive.
The bill is short and clearly written, making it accessible for a quick read and evaluation by any interested party.
Section 2(a), amending 52 U.S.C. 30126 (new Section 324(a))
Prohibition on Prediction Market Transactions
This provision explicitly forbids any candidate, authorized committee, or other political committee from using campaign funds to engage in prediction markets or event contracts. These are defined as agreements or instruments whose value depends on the outcome of future events, including elections, legislative actions, regulatory decisions, or other political or economic occurrences. The goal is to prevent campaign funds from being used for speculative financial activities tied to political outcomes.
Supporters argue
Supporters argue this prohibition is essential to prevent conflicts of interest and the appearance of impropriety, ensuring that campaign funds are dedicated to political advocacy rather than financial speculation on political outcomes. It reinforces public trust in the integrity of elections and legislative processes.
Critics contend
Opponents might argue that this provision unnecessarily restricts the financial management options for campaigns, potentially limiting their ability to generate returns on unused funds. They may also contend that the scope of 'prediction market' could be overly broad, inadvertently capturing legitimate financial activities.
Tradeoffs
The provision balances the desire for financial integrity in campaigns against the autonomy of political committees to manage their funds. It aims to eliminate potential ethical hazards but at the cost of restricting certain financial behaviors.
Section 2(a), amending 52 U.S.C. 30126 (new Section 324(b) and (c))
Enforcement and Penalties
This section establishes the consequences for violating the prohibition. Any violation will be handled through existing Federal Election Campaign Act enforcement procedures, including civil penalties. For knowing and willful violations, individuals or committees could face criminal penalties, such as fines under Title 18 of the U.S. Code, imprisonment for up to 5 years, or both. The Federal Election Commission (FEC) is also authorized to refer such cases to the U.S. Department of Justice for criminal prosecution.
Section 2(a), amending 52 U.S.C. 30126 (new Section 324(d), (e), and (f))
Regulatory Guidance and Permissible Investments
This part of the bill mandates the Federal Election Commission (FEC) to create regulations and guidance to implement the new prohibition, including clarifying permissible financial instruments and compliance requirements. It also explicitly states that the prohibition does not apply to low-risk investments like deposits in insured banks, diversified mutual funds, or exchange-traded funds, or other low-risk instruments approved by the FEC. It defines key terms like 'campaign funds' and 'prediction market' for clarity.