H.R. 8912: Campaign Funds Integrity Act of 2026

This bill, titled the Campaign Funds Integrity Act of 2026, aims to amend existing regulations concerning the use of campaign funds by political candidates and committees. Specifically, the bill introduces the following key provisions:

Prohibition on Prediction Markets

The bill prohibits candidates, authorized committees, or other political committees from using campaign funds to engage in any activities related to prediction markets or event contracts. This includes:

• Contracts or instruments whose value is linked to the outcome of an election.
• Contracts linked to legislative actions, regulatory decisions, or any other political or economic events.

Enforcement and Penalties

The bill outlines specific enforcement measures for violations of the prohibition, classified into two categories:

• General Violations: Any violation will be subject to enforcement procedures under existing legislation, specifically section 309 of the Federal Election Campaign Act, which includes civil penalties.
• Knowing and Willful Violations: Individuals committing a knowing and willful violation may face criminal penalties, which could include fines or imprisonment for up to five years.

Referral to Department of Justice

In cases of apparent violations that are willful, the Federal Election Commission (FEC) is authorized to refer these cases to the U.S. Department of Justice for criminal prosecution.

Regulation and Guidance

The FEC will be responsible for creating regulations to enforce these provisions. This includes providing guidance on what constitutes permissible financial instruments and the compliance requirements for campaign funds.

Permitted Uses of Campaign Funds

It is important to note that this legislation does not prevent the use of campaign funds for:

• Deposits in insured banks.
• Investments in diversified mutual funds or exchange-traded funds.
• Other low-risk financial instruments, which will be defined by the FEC.

Definitions

For clarification within the bill:

• Campaign Funds: This term refers to contributions or donations received by candidates, authorized committees, or political committees subject to the Act.
• Prediction Market/Event Contract: An agreement or instrument that pays based on the outcome of a specified future event, including political and regulatory outcomes.

Effective Date

The provisions of this bill will become effective 120 days after its enactment.

Relevant Companies

None found.