Litigation Funding Transparency Act of 2026

The bill adds a new section 1747 to title 28 of the U.S. Code requiring parties and their counsel in class actions, multidistrict litigation, and consolidated federal civil actions of 100 or more cases to disclose in writing the identity of any third-party litigation funder and whether that funder is a foreign state, foreign person, sovereign wealth fund, or entity controlled by one. It requires producing funding agreements to the court and other parties, transmitting foreign-funder disclosures to the Administrative Office of the U.S. Courts, and having that office publish periodic reports on such funding. It also prohibits third-party funders from controlling litigation strategy or settlement negotiations and bars them from viewing protected discovery materials, with contempt enforcement available to courts.

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