Tackling Predatory Litigation Funding Act
In committee: it can still change before the session ends.
- Stage
- In committee
- Started in
- Senate
- Sponsors
- 9
- Latest action
- May 20, 2025
What it does
The bill would impose a tax on income received by third-party entities that provide financing for litigation, calculated as the highest individual income tax rate plus 3.8 percentage points, applied to qualified litigation proceeds. It affects third parties such as corporations, partnerships, or sovereign wealth funds that fund lawsuits but are not attorneys representing a party, and requires withholding of tax by the party or law firm receiving the funds. The bill also excludes litigation financing proceeds from gross income and defines them as financial arrangements not treated as capital assets for tax purposes, with the provisions effective for taxable years beginning after December 31,…
No official summary is available here. This one was written by AI from the bill’s text.
Where it stands
Introduced (Done)
Committee (Current step)
Floor (Not started)
Law (Not started)
What moved
Who is involved
Sponsors
The lawmakers who put their names on it, lead sponsors first.
Where it goes next
While a bill can still move, the questions are about people and money.