H.R. 4786: Honest Elections and Campaign, No Gain Act

The Honest Elections and Campaign, No Gain Act, also known as H.R. 4786, is a proposed piece of legislation seeking to modify the rules governing political campaign financing and the use of leftover funds by candidates who have run for federal office. Here are the key features of the bill:

Fund Disbursement Requirements

• Mandatory Disbursement: Candidates' authorized committees and leadership Political Action Committees (PACs) would be required to spend any unspent funds after an election within a specified timeframe.
• Disbursement Period: The period for disbursement would start after the election and last for two years. Funds must be disbursed before certain triggers, such as when the candidate becomes a lobbyist or an agent for a foreign principal.
• Exceptions: If a candidate is preparing to run in the next election, the disbursement rules would not apply if they comply with state requirements to qualify as a candidate.
• Use of Funds: Remaining funds can be used to pay off obligations the committee incurred, return contributions to donors, donate to specific charitable organizations, or transfer money to political party committees.
• Restrictions on Relatives: Funds cannot be disbursed to candidates' relatives unless it's for a legitimate obligation incurred by the committee. A "relative" includes a broad range of family relationships.

Compliance Certification for Lobbyists and Foreign Agents

• Lobbyist Certification: Former candidates who become registered lobbyists must certify that their campaign committees have complied with the new fund disbursement requirements.
• Foreign Agent Certification: Similar certification is required for those who register as foreign agents, ensuring that their committees meet the same financial compliance standards.

Effective Date

The amendments proposed by this bill would come into effect starting with the regularly scheduled general election for federal office in November 2026.

Relevant Companies

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