Litigation Funding Transparency Act of 2026

# Litigation Funding Transparency Act of 2026 - Summary **What the Bill Would Do** The Litigation Funding Transparency Act would require parties involved in lawsuits to disclose who is funding their legal cases. This applies to third-party litigation funding—situations where outside investors or organizations pay for a lawsuit in exchange for a share of any settlement or judgment. The bill aims to make these financial relationships public so judges, opposing parties, and the public know who has a financial interest in the outcome of a case. **Who It Affects and Key Provisions** This bill primarily affects plaintiffs in civil lawsuits who use third-party funding, as well as the investors or companies providing that funding. Courts would require disclosure of funding sources, amounts, and terms.

The bill could impact the litigation funding industry, which has grown significantly in recent years as an alternative way for individuals and businesses to finance expensive lawsuits. **Current Status** As of now, the bill is in committee, meaning it has been assigned to a Senate committee for review and discussion but has not yet been voted on by the full Senate. No further action has been taken. The bill was introduced by Senator Chuck Grassley (R-IA).