Litigation Funding Transparency Act Introduced in The Senate

• By: Raaed Haddad
• February 19, 2026

Late last week, Senate Judiciary Committee Chairman Chuck Grassley (R-Iowa), along with Sens. Thom Tillis (R-North Carolina), John Kennedy (R-Louisiana) and John Cornyn (R-Texas), introduced the “Litigation Funding Transparency Act of 2026.”

The legislation would require parties to publicly disclose third-party litigation funding (TPLF), including funding from a foreign state, foreign person or sovereign wealth fund, in mass tort and class action suits.

According to the U.S. Senate Committee on the Judiciary website, “the bill also prohibits any third-party funder from influencing litigation strategy or settlement negotiations, as well as obtaining, inspecting, copying or viewing any material produced in discovery that is subject to a protective order.”

Importantly, nonprofit legal organizations that provide services on a nonprofit basis are exempt from reporting requirements under the act.

According to a recent Trusted Choice Consumer Survey, 64.3% of respondents said they were concerned about how excessive lawsuits increase their premiums, and 80.5% believe that the legal system is used in ways that unfairly drive up insurance costs.

Overwhelmingly, 8 in 10 respondents also believe that their premiums would increase due to excessive lawsuits, even if they had never filed a claim themselves.

The Big “I” will continue to advocate for legal system reform, particularly more transparency from those funding litigation, while advocating for independent insurance agents. Look out for updates in the News & Views e-newsletter.

Raaed Haddad is Big “I” director of federal government affairs