Federal courts would bar foreign-funded civil lawsuits

What does this do?

This bill sets new rules for when a foreign person, foreign government, or government-owned fund pays to support a federal lawsuit in exchange for a share of the winnings. Foreign governments and their sovereign wealth funds would be completely banned from doing this, and any agreement that breaks that rule would be legally void. All other foreign funding arrangements must be formally reported to the court, to the other side in the case, and to the U.S. Attorney General.

Who does it affect?

These rules apply to anyone involved in a federal civil lawsuit where outside foreign money is helping pay for it, including the parties, their lawyers, and the foreign funders. The U.S. Attorney General is also required to send Congress a yearly report on how much foreign litigation funding is happening in federal courts and who is behind it.

Why does it matter?

Without these rules, foreign governments could quietly fund U.S. federal lawsuits without the court or opposing side knowing. The ban and disclosure requirements are meant to make that kind of involvement visible or stop it altogether.

Where does it stand?