H.R. 2190: Shareholder Political Transparency Act of 2025

This bill, titled the **Shareholder Political Transparency Act of 2025**, proposes amendments to the Securities Exchange Act of 1934 with the aim of enhancing transparency regarding corporate political expenditures. The main points of the bill are as follows:

Key Findings

• Corporations make significant political contributions that can influence elections and political causes.
• Decisions about corporate political spending are usually made by corporate boards and executives without shareholder input.
• Corporations are expected to act in the best interests of their shareholders.
• Shareholders currently lack information regarding corporate political activities and expenditures.
• There is a public interest in knowing how corporate funds are utilized for political purposes.
• Corporations should be held accountable for their political expenditures affecting federal governance and public policy.

Reporting Requirements

The bill establishes specific reporting requirements for corporations regarding their political expenditures:

Definitions

• **Expenditures for political activities** include:
  • Independent expenditures (as defined in federal election laws).
  • Electioneering communications and certain other public communications.
  • Payments to trade associations which may be used for political purposes.
• The term **issuer** refers to corporations that are required to report, excluding registered investment companies.

Quarterly Reports

Within 180 days of the bill's enactment, the Securities and Exchange Commission (SEC) must amend rules to require corporations to submit quarterly reports that detail:

• The description and date of any political expenditure made.
• The amount of each expenditure.
• If applicable, the name of any candidate benefited and their political affiliation.
• The identity of any trade association receiving dues intended for political activities.

Public Accessibility

These quarterly reports will be made publicly accessible through the SEC's website and other available resources.

Annual Reports

Additionally, the SEC must enforce that corporations include specific information in their annual reports. This includes:

• A summary of all political expenditures over $10,000 made in the prior year.
• A description of anticipated political activities for the coming year.
• The total expected expenditures for political activities for the forthcoming year.

Reports to Congress

The SEC is also tasked with conducting an annual assessment of issuer compliance with these reporting requirements and submitting the results to Congress. The Government Accountability Office (GAO) will evaluate the effectiveness of the SEC’s oversight of the new reporting and disclosure requirements periodically.

Relevant Companies

• None found