Empower Act of 2021
This bill modifies the system for the public financing of presidential primary and general elections.
The bill (1) increases the amount of matching funds for participating candidates by matching the first $200 of contributions by individuals to a candidate at a 6:1 ratio; (2) eliminates spending limits on participating candidates; (3) allows the national committee of a political party to make expenditures of up to $100 million in coordination with participating candidates; (4) requires all payments made to candidates, beginning with the 2028 presidential election, to be made from the Freedom From Influence Fund established by this bill; and (5) prohibits joint fundraising committees for any authorized committee of a candidate.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1312 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 1312
To amend chapters 95 and 96 of the Internal Revenue Code of 1986 to
reform the system of public financing for Presidential election
campaigns, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
February 24, 2021
Mr. Price of North Carolina introduced the following bill; which was
referred to the Committee on House Administration, and in addition to
the Committees on Ways and Means, and the Judiciary, for a period to be
subsequently determined by the Speaker, in each case for consideration
of such provisions as fall within the jurisdiction of the committee
concerned
_______________________________________________________________________
A BILL
To amend chapters 95 and 96 of the Internal Revenue Code of 1986 to
reform the system of public financing for Presidential election
campaigns, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Empower Act of
2021''.
(b) Table of Contents.--The table of contents of this Act is as
follows:
Sec. 1. Short title; table of contents.
TITLE I--PRIMARY ELECTIONS
Sec. 101. Increase in and modifications to matching payments.
Sec. 102. Eligibility requirements for matching payments.
Sec. 103. Repeal of expenditure limitations.
Sec. 104. Period of availability of matching payments.
Sec. 105. Examination and audits of matchable contributions.
Sec. 106. Modification to limitation on contributions for Presidential
primary candidates.
Sec. 107. Use of Freedom From Influence Fund as source of payments.
TITLE II--GENERAL ELECTIONS
Sec. 201. Modification of eligibility requirements for public
financing.
Sec. 202. Repeal of expenditure limitations and use of qualified
campaign contributions.
Sec. 203. Matching payments and other modifications to payment amounts.
Sec. 204. Increase in limit on coordinated party expenditures.
Sec. 205. Establishment of uniform date for release of payments.
Sec. 206. Amounts in Presidential Election Campaign Fund.
Sec. 207. Use of general election payments for general election legal
and accounting compliance.
Sec. 208. Use of Freedom From Influence Fund as source of payments.
TITLE III--FREEDOM FROM INFLUENCE FUND
Sec. 301. Freedom From Influence Fund.
Sec. 302. Assessments against fines and penalties.
TITLE IV--EFFECTIVE DATE
Sec. 401. Effective date.
TITLE I--PRIMARY ELECTIONS
SEC. 101. INCREASE IN AND MODIFICATIONS TO MATCHING PAYMENTS.
(a) Increase and Modification.--
(1) In general.--The first sentence of section 9034(a) of
the Internal Revenue Code of 1986 is amended--
(A) by striking ``an amount equal to the amount of
each contribution'' and inserting ``an amount equal to
600 percent of the amount of each matchable
contribution (disregarding any amount of contributions
from any person to the extent that the total of the
amounts contributed by such person for the election
exceeds $200)''; and
(B) by striking ``authorized committees'' and all
that follows through ``$250'' and inserting
``authorized committees''.
(2) Matchable contributions.--Section 9034 of such Code is
amended--
(A) by striking the last sentence of subsection
(a); and
(B) by adding at the end the following new
subsection:
``(c) Matchable Contribution Defined.--For purposes of this section
and section 9033(b)--
``(1) Matchable contribution.--The term `matchable
contribution' means, with respect to the nomination for
election to the office of President of the United States, a
contribution by an individual to a candidate or an authorized
committee of a candidate with respect to which the candidate
has certified in writing that--
``(A) the individual making such contribution has
not made aggregate contributions (including such
matchable contribution) to such candidate and the
authorized committees of such candidate in excess of
$1,000 for the election;
``(B) such candidate and the authorized committees
of such candidate will not accept contributions from
such individual (including such matchable contribution)
aggregating more than the amount described in
subparagraph (A); and
``(C) such contribution was a direct contribution.
``(2) Contribution.--For purposes of this subsection, the
term `contribution' means a gift of money made by a written
instrument which identifies the individual making the
contribution by full name and mailing address, but does not
include a subscription, loan, advance, or deposit of money, or
anything of value or anything described in subparagraph (B),
(C), or (D) of section 9032(4).
``(3) Direct contribution.--
``(A) In general.--For purposes of this subsection,
the term `direct contribution' means, with respect to a
candidate, a contribution which is made directly by an
individual to the candidate or an authorized committee
of the candidate and is not--
``(i) forwarded from the individual making
the contribution to the candidate or committee
by another person; or
``(ii) received by the candidate or
committee with the knowledge that the
contribution was made at the request,
suggestion, or recommendation of another
person.
``(B) Other definitions.--In subparagraph (A)--
``(i) the term `person' does not include an
individual (other than an individual described
in section 304(i)(7) of the Federal Election
Campaign Act of 1971), a political committee of
a political party, or any political committee
which is not a separate segregated fund
described in section 316(b) of the Federal
Election Campaign Act of 1971 and which does
not make contributions or independent
expenditures, does not engage in lobbying
activity under the Lobbying Disclosure Act of
1995 (2 U.S.C. 1601 et seq.), and is not
established by, controlled by, or affiliated
with a registered lobbyist under such Act, an
agent of a registered lobbyist under such Act,
or an organization which retains or employs a
registered lobbyist under such Act; and
``(ii) a contribution is not `made at the
request, suggestion, or recommendation of
another person' solely on the grounds that the
contribution is made in response to information
provided to the individual making the
contribution by any person, so long as the
candidate or authorized committee does not know
the identity of the person who provided the
information to such individual.''.
(3) Conforming amendments.--
(A) Section 9032(4) of such Code is amended by
striking ``section 9034(a)'' and inserting ``section
9034''.
(B) Section 9033(b)(3) of such Code is amended by
striking ``matching contributions'' and inserting
``matchable contributions''.
(b) Modification of Payment Limitation.--Section 9034(b) of such
Code is amended--
(1) by striking ``The total'' and inserting the following:
``(1) In general.--The total'';
(2) by striking ``shall not exceed'' and all that follows
and inserting ``shall not exceed $250,000,000.''; and
(3) by adding at the end the following new paragraph:
``(2) Inflation adjustment.--
``(A) In general.--In the case of any applicable
period beginning after 2029, the dollar amount in
paragraph (1) shall be increased by an amount equal
to--
``(i) such dollar amount, multiplied by
``(ii) the cost-of-living adjustment
determined under section 1(f)(3) for the
calendar year following the year which such
applicable period begins, determined by
substituting `calendar year 2028' for `calendar
year 1992' in subparagraph (B) thereof.
``(B) Applicable period.--For purposes of this
paragraph, the term `applicable period' means the 4-
year period beginning with the first day following the
date of the general election for the office of
President and ending on the date of the next such
general election.
``(C) Rounding.--If any amount as adjusted under
subparagraph (1) is not a multiple of $10,000, such
amount shall be rounded to the nearest multiple of
$10,000.''.
SEC. 102. ELIGIBILITY REQUIREMENTS FOR MATCHING PAYMENTS.
(a) Amount of Aggregate Contributions Per State; Disregarding of
Amounts Contributed in Excess of $200.--Section 9033(b)(3) of the
Internal Revenue Code of 1986 is amended--
(1) by striking ``$5,000'' and inserting ``$25,000''; and
(2) by striking ``20 States'' and inserting the following:
``20 States (disregarding any amount of contributions from any
such resident to the extent that the total of the amounts
contributed by such resident for the election exceeds $200)''.
(b) Contribution Limit.--
(1) In general.--Paragraph (4) of section 9033(b) of such
Code is amended to read as follows:
``(4) the candidate and the authorized committees of the
candidate will not accept aggregate contributions from any
person with respect to the nomination for election to the
office of President of the United States in excess of $1,000
for the election.''.
(2) Conforming amendments.--
(A) Section 9033(b) of such Code is amended by
adding at the end the following new flush sentence:
``For purposes of paragraph (4), the term `contribution' has the
meaning given such term in section 301(8) of the Federal Election
Campaign Act of 1971.''.
(B) Section 9032(4) of such Code, as amended by
section 101(a)(3)(A), is amended by striking ``section
9034'' and inserting ``section 9033(b) or 9034''.
(c) Participation in System for Payments for General Election.--
Section 9033(b) of such Code is amended--
(1) by striking ``and'' at the end of paragraph (3);
(2) by striking the period at the end of paragraph (4) and
inserting ``, and''; and
(3) by inserting after paragraph (4) the following new
paragraph:
``(5) if the candidate is nominated by a political party
for election to the office of President, the candidate will
apply for and accept payments with respect to the general
election for such office in accordance with chapter 95.''.
(d) Prohibition on Joint Fundraising Committees.--Section 9033(b)
of such Code, as amended by subsection (c), is amended--
(1) by striking ``and'' at the end of paragraph (4);
(2) by striking the period at the end of paragraph (5) and
inserting ``; and''; and
(3) by inserting after paragraph (5) the following new
paragraph:
``(6) the candidate will not establish a joint fundraising
committee with a political committee other than another
authorized committee of the candidate, except that candidate
established a joint fundraising committee with respect to a
prior election for which the candidate was not eligible to
receive payments under section 9037 and the candidate does not
terminate the committee, the candidate shall not be considered
to be in violation of this paragraph so long as that joint
fundraising committee does not receive any contributions or
make any disbursements during the election cycle for which the
candidate is eligible to receive payments under such
section.''.
SEC. 103. REPEAL OF EXPENDITURE LIMITATIONS.
(a) In General.--Subsection (a) of section 9035 of the Internal
Revenue Code of 1986 is amended to read as follows:
``(a) Personal Expenditure Limitation.--No candidate shall
knowingly make expenditures from his personal funds, or the personal
funds of his immediate family, in connection with his campaign for
nomination for election to the office of President in excess of, in the
aggregate, $50,000.''.
(b) Conforming Amendment.--Paragraph (1) of section 9033(b) of the
Internal Revenue Code of 1986 is amended to read as follows:
``(1) the candidate will comply with the personal
expenditure limitation under section 9035,''.
SEC. 104. PERIOD OF AVAILABILITY OF MATCHING PAYMENTS.
Section 9032(6) of the Internal Revenue Code of 1986 is amended by
striking ``the beginning of the calendar year in which a general
election for the office of President of the United States will be
held'' and inserting ``the date that is 6 months prior to the date of
the earliest State primary election''.
SEC. 105. EXAMINATION AND AUDITS OF MATCHABLE CONTRIBUTIONS.
Section 9038(a) of the Internal Revenue Code of 1986 is amended by
inserting ``and matchable contributions accepted by'' after ``qualified
campaign expenses of''.
SEC. 106. MODIFICATION TO LIMITATION ON CONTRIBUTIONS FOR PRESIDENTIAL
PRIMARY CANDIDATES.
Section 315(a)(6) of the Federal Election Campaign Act of 1971 (52
U.S.C. 30116(a)(6)) is amended by striking ``calendar year'' and
inserting ``four-year election cycle''.
SEC. 107. USE OF FREEDOM FROM INFLUENCE FUND AS SOURCE OF PAYMENTS.
(a) In General.--Chapter 96 of subtitle H of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 9043. USE OF FREEDOM FROM INFLUENCE FUND AS SOURCE OF PAYMENTS.
``(a) In General.--Notwithstanding any other provision of this
chapter, effective with respect to the Presidential election held in
2028 and each succeeding Presidential election, all payments made to
candidates under this chapter shall be made from the Freedom From
Influence Fund established under title III of the Empower Act of 2021
(hereafter in this section referred to as the `Fund').
``(b) Mandatory Reduction of Payments in Case of Insufficient
Amounts in Fund.--
``(1) Advance audits by commission.--Not later than 90 days
before the first day of each Presidential election cycle
(beginning with the cycle for the election held in 2028), the
Commission shall--
``(A) audit the Fund to determine whether the
amounts remaining in the Fund will be sufficient to
make payments to candidates under this chapter in the
amounts provided under this chapter during such
election cycle; and
``(B) submit a report to Congress describing the
results of the audit.
``(2) Reductions in amount of payments.--
``(A) Automatic reduction on pro rata basis.--If,
on the basis of the audit described in paragraph (1),
the Commission determines that the amount anticipated
to be available in the Fund with respect to the
Presidential election cycle involved is not, or may not
be, sufficient to satisfy the full entitlements of
candidates to payments under this chapter for such
cycle, the Commission shall reduce each amount which
would otherwise be paid to a candidate under this
chapter by such pro rata amount as may be necessary to
ensure that the aggregate amount of payments
anticipated to be made with respect to the cycle will
not exceed the amount anticipated to be available for
such payments in the Fund with respect to such cycle.
``(B) Restoration of reductions in case of
availability of sufficient funds during election
cycle.--If, after reducing the amounts paid to
candidates with respect to an election cycle under
subparagraph (A), the Commission determines that there
are sufficient amounts in the Fund to restore the
amount by which such payments were reduced (or any
portion thereof), to the extent that such amounts are
available, the Commission may make a payment on a pro
rata basis to each such candidate with respect to the
election cycle in the amount by which such candidate's
payments were reduced under subparagraph (A) (or any
portion thereof, as the case may be).
``(C) No use of amounts from other sources.--In any
case in which the Commission determines that there are
insufficient moneys in the Fund to make payments to
candidates under this chapter, moneys shall not be made
available from any other source for the purpose of
making such payments.
``(3) No effect on amounts transferred for pediatric
research initiative.--This section does not apply to the
transfer of funds under section 9008(i).
``(4) Presidential election cycle defined.--In this
section, the term `Presidential election cycle' means, with
respect to a Presidential election, the period beginning on the
day after the date of the previous Presidential general
election and ending on the date of the Presidential
election.''.
(b) Clerical Amendment.--The table of sections for chapter 96 of
subtitle H of such Code is amended by adding at the end the following
new item:
``Sec. 9043. Use of Freedom From Influence Fund as source of
payments.''.
TITLE II--GENERAL ELECTIONS
SEC. 201. MODIFICATION OF ELIGIBILITY REQUIREMENTS FOR PUBLIC
FINANCING.
Subsection (a) of section 9003 of the Internal Revenue Code of 1986
is amended to read as follows:
``(a) In General.--In order to be eligible to receive any payments
under section 9006, the candidates of a political party in a
Presidential election shall meet the following requirements:
``(1) Participation in primary payment system.--The
candidate for President received payments under chapter 96 for
the campaign for nomination for election to be President.
``(2) Agreements with commission.--The candidates, in
writing--
``(A) agree to obtain and furnish to the Commission
such evidence as it may request of the qualified
campaign expenses of such candidates,
``(B) agree to keep and furnish to the Commission
such records, books, and other information as it may
request, and
``(C) agree to an audit and examination by the
Commission under section 9007 and to pay any amounts
required to be paid under such section.
``(3) Prohibition on joint fundraising committees.--
``(A) Prohibition.--The candidates certifies in
writing that the candidates will not establish a joint
fundraising committee with a political committee other
than another authorized committee of the candidate.
``(B) Status of existing committees for prior
elections.--If a candidate established a joint
fundraising committee described in subparagraph (A)
with respect to a prior election for which the
candidate was not eligible to receive payments under
section 9006 and the candidate does not terminate the
committee, the candidate shall not be considered to be
in violation of subparagraph (A) so long as that joint
fundraising committee does not receive any
contributions or make any disbursements with respect to
the election for which the candidate is eligible to
receive payments under section 9006.''.
SEC. 202. REPEAL OF EXPENDITURE LIMITATIONS AND USE OF QUALIFIED
CAMPAIGN CONTRIBUTIONS.
(a) Use of Qualified Campaign Contributions Without Expenditure
Limits; Application of Same Requirements for Major, Minor, and New
Parties.--Section 9003 of the Internal Revenue Code of 1986 is amended
by striking subsections (b) and (c) and inserting the following:
``(b) Use of Qualified Campaign Contributions To Defray Expenses.--
``(1) In general.--In order to be eligible to receive any
payments under section 9006, the candidates of a party in a
Presidential election shall certify to the Commission, under
penalty of perjury, that--
``(A) such candidates and their authorized
committees have not and will not accept any
contributions to defray qualified campaign expenses
other than--
``(i) qualified campaign contributions, and
``(ii) contributions to the extent
necessary to make up any deficiency payments
received out of the fund on account of the
application of section 9006(c), and
``(B) such candidates and their authorized
committees have not and will not accept any
contribution to defray expenses which would be
qualified campaign expenses but for subparagraph (C) of
section 9002(11).
``(2) Timing of certification.--The candidate shall make
the certification required under this subsection at the same
time the candidate makes the certification required under
subsection (a)(3).''.
(b) Definition of Qualified Campaign Contribution.--Section 9002 of
such Code is amended by adding at the end the following new paragraph:
``(13) Qualified campaign contribution.--The term
`qualified campaign contribution' means, with respect to any
election for the office of President of the United States, a
contribution from an individual to a candidate or an authorized
committee of a candidate which--
``(A) does not exceed $1,000 for the election; and
``(B) with respect to which the candidate has
certified in writing that--
``(i) the individual making such
contribution has not made aggregate
contributions (including such qualified
contribution) to such candidate and the
authorized committees of such candidate in
excess of the amount described in subparagraph
(A), and
``(ii) such candidate and the authorized
committees of such candidate will not accept
contributions from such individual (including
such qualified contribution) aggregating more
than the amount described in subparagraph (A)
with respect to such election.''.
(c) Conforming Amendments.--
(1) Repeal of expenditure limits.--
(A) In general.--Section 315 of the Federal
Election Campaign Act of 1971 (52 U.S.C. 30116) is
amended by striking subsection (b).
(B) Conforming amendments.--Section 315(c) of such
Act (52 U.S.C. 30116(c)) is amended--
(i) in paragraph (1)(B)(i), by striking ``,
(b)''; and
(ii) in paragraph (2)(B)(i), by striking
``subsections (b) and (d)'' and inserting
``subsection (d)''.
(2) Repeal of repayment requirement.--
(A) In general.--Section 9007(b) of the Internal
Revenue Code of 1986 is amended by striking paragraph
(2) and redesignating paragraphs (3), (4), and (5) as
paragraphs (2), (3), and (4), respectively.
(B) Conforming amendment.--Paragraph (2) of section
9007(b) of such Code, as redesignated by subparagraph
(A), is amended--
(i) by striking ``a major party'' and
inserting ``a party'';
(ii) by striking ``contributions (other
than'' and inserting ``contributions (other
than qualified contributions''; and
(iii) by striking ``(other than qualified
campaign expenses with respect to which payment
is required under paragraph (2))''.
(3) Criminal penalties.--
(A) Repeal of penalty for excess expenses.--Section
9012 of the Internal Revenue Code of 1986 is amended by
striking subsection (a).
(B) Penalty for acceptance of disallowed
contributions; application of same penalty for
candidates of major, minor, and new parties.--
Subsection (b) of section 9012 of such Code is amended
to read as follows:
``(b) Contributions.--
``(1) Acceptance of disallowed contributions.--It shall be
unlawful for an eligible candidate of a party in a Presidential
election or any of his authorized committees knowingly and
willfully to accept--
``(A) any contribution other than a qualified
campaign contribution to defray qualified campaign
expenses, except to the extent necessary to make up any
deficiency in payments received out of the fund on
account of the application of section 9006(c); or
``(B) any contribution to defray expenses which
would be qualified campaign expenses but for
subparagraph (C) of section 9002(11).
``(2) Penalty.--Any person who violates paragraph (1) shall
be fined not more than $5,000, or imprisoned not more than one
year, or both. In the case of a violation by an authorized
committee, any officer or member of such committee who
knowingly and willfully consents to such violation shall be
fined not more than $5,000, or imprisoned not more than one
year, or both.''.
SEC. 203. MATCHING PAYMENTS AND OTHER MODIFICATIONS TO PAYMENT AMOUNTS.
(a) In General.--
(1) Amount of payments; application of same amount for
candidates of major, minor, and new parties.--Subsection (a) of
section 9004 of the Internal Revenue Code of 1986 is amended to
read as follows:
``(a) In General.--Subject to the provisions of this chapter, the
eligible candidates of a party in a Presidential election shall be
entitled to equal payment under section 9006 in an amount equal to 600
percent of the amount of each matchable contribution received by such
candidate or by the candidate's authorized committees (disregarding any
amount of contributions from any person to the extent that the total of
the amounts contributed by such person for the election exceeds $200),
except that total amount to which a candidate is entitled under this
paragraph shall not exceed $250,000,000.''.
(2) Repeal of separate limitations for candidates of minor
and new parties; inflation adjustment.--Subsection (b) of
section 9004 of such Code is amended to read as follows:
``(b) Inflation Adjustment.--
``(1) In general.--In the case of any applicable period
beginning after 2029, the $250,000,000 dollar amount in
subsection (a) shall be increased by an amount equal to--
``(A) such dollar amount; multiplied by
``(B) the cost-of-living adjustment determined
under section 1(f)(3) for the calendar year following
the year which such applicable period begins,
determined by substituting `calendar year 2028' for
`calendar year 1992' in subparagraph (B) thereof.
``(2) Applicable period.--For purposes of this subsection,
the term `applicable period' means the 4-year period beginning
with the first day following the date of the general election
for the office of President and ending on the date of the next
such general election.
``(3) Rounding.--If any amount as adjusted under paragraph
(1) is not a multiple of $10,000, such amount shall be rounded
to the nearest multiple of $10,000.''.
(3) Conforming amendment.--Section 9005(a) of such Code is
amended by adding at the end the following new sentence: ``The
Commission shall make such additional certifications as may be
necessary to receive payments under section 9004.''.
(b) Matchable Contribution.--Section 9002 of such Code, as amended
by section 202(b), is amended by adding at the end the following new
paragraph:
``(14) Matchable contribution.--The term `matchable
contribution' means, with respect to the election to the office
of President of the United States, a contribution by an
individual to a candidate or an authorized committee of a
candidate with respect to which the candidate has certified in
writing that--
``(A) the individual making such contribution has
not made aggregate contributions (including such
matchable contribution) to such candidate and the
authorized committees of such candidate in excess of
$1,000 for the election;
``(B) such candidate and the authorized committees
of such candidate will not accept contributions from
such individual (including such matchable contribution)
aggregating more than the amount described in
subparagraph (A) with respect to such election; and
``(C) such contribution was a direct contribution
(as defined in section 9034(c)(3)).''.
SEC. 204. INCREASE IN LIMIT ON COORDINATED PARTY EXPENDITURES.
(a) In General.--Section 315(d)(2) of the Federal Election Campaign
Act of 1971 (52 U.S.C. 30116(d)(2)) is amended to read as follows:
``(2)(A) The national committee of a political party may not make
any expenditure in connection with the general election campaign of any
candidate for President of the United States who is affiliated with
such party which exceeds $100,000,000.
``(B) For purposes of this paragraph--
``(i) any expenditure made by or on behalf of a national
committee of a political party and in connection with a
Presidential election shall be considered to be made in
connection with the general election campaign of a candidate
for President of the United States who is affiliated with such
party; and
``(ii) any communication made by or on behalf of such party
shall be considered to be made in connection with the general
election campaign of a candidate for President of the United
States who is affiliated with such party if any portion of the
communication is in connection with such election.
``(C) Any expenditure under this paragraph shall be in addition to
any expenditure by a national committee of a political party serving as
the principal campaign committee of a candidate for the office of
President of the United States.''.
(b) Conforming Amendments Relating to Timing of Cost-of-Living
Adjustment.--
(1) In general.--Section 315(c)(1) of such Act (52 U.S.C.
30116(c)(1)) is amended--
(A) in subparagraph (B), by striking ``(d)'' and
inserting ``(d)(2)''; and
(B) by adding at the end the following new
subparagraph:
``(D) In any calendar year after 2028--
``(i) the dollar amount in subsection (d)(2) shall be
increased by the percent difference determined under
subparagraph (A);
``(ii) the amount so increased shall remain in effect for
the calendar year; and
``(iii) if the amount after adjustment under clause (i) is
not a multiple of $100, such amount shall be rounded to the
nearest multiple of $100.''.
(2) Base year.--Section 315(c)(2)(B) of such Act (52 U.S.C.
30116(c)(2)(B)) is amended--
(A) in clause (i)--
(i) by striking ``(d)'' and inserting
``(d)(3)''; and
(ii) by striking ``and'' at the end;
(B) in clause (ii), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following new clause:
``(iii) for purposes of subsection (d)(2), calendar
year 2027.''.
SEC. 205. ESTABLISHMENT OF UNIFORM DATE FOR RELEASE OF PAYMENTS.
(a) Date for Payments.--
(1) In general.--Section 9006(b) of the Internal Revenue
Code of 1986 is amended to read as follows:
``(b) Payments From the Fund.--If the Secretary of the Treasury
receives a certification from the Commission under section 9005 for
payment to the eligible candidates of a political party, the Secretary
shall pay to such candidates out of the fund the amount certified by
the Commission on the later of--
``(1) the last Friday occurring before the first Monday in
September; or
``(2) 24 hours after receiving the certifications for the
eligible candidates of all major political parties.
Amounts paid to any such candidates shall be under the control of such
candidates.''.
(2) Conforming amendment.--The first sentence of section
9006(c) of such Code is amended by striking ``the time of a
certification by the Commission under section 9005 for
payment'' and inserting ``the time of making a payment under
subsection (b)''.
(b) Time for Certification.--Section 9005(a) of the Internal
Revenue Code of 1986 is amended by striking ``10 days'' and inserting
``24 hours''.
SEC. 206. AMOUNTS IN PRESIDENTIAL ELECTION CAMPAIGN FUND.
Section 9006(c) of the Internal Revenue Code of 1986 is amended by
adding at the end the following new sentence: ``In making a
determination of whether there are insufficient moneys in the fund for
purposes of the previous sentence, the Secretary shall take into
account in determining the balance of the fund for a Presidential
election year the Secretary's best estimate of the amount of moneys
which will be deposited into the fund during the year, except that the
amount of the estimate may not exceed the average of the annual amounts
deposited in the fund during the previous 3 years.''.
SEC. 207. USE OF GENERAL ELECTION PAYMENTS FOR GENERAL ELECTION LEGAL
AND ACCOUNTING COMPLIANCE.
Section 9002(11) of the Internal Revenue Code of 1986 is amended by
adding at the end the following new sentence: ``For purposes of
subparagraph (A), an expense incurred by a candidate or authorized
committee for general election legal and accounting compliance purposes
shall be considered to be an expense to further the election of such
candidate.''.
SEC. 208. USE OF FREEDOM FROM INFLUENCE FUND AS SOURCE OF PAYMENTS.
(a) In General.--Chapter 95 of subtitle H of the Internal Revenue
Code of 1986 is amended by adding at the end the following new section:
``SEC. 9013. USE OF FREEDOM FROM INFLUENCE FUND AS SOURCE OF PAYMENTS.
``(a) In General.--Notwithstanding any other provision of this
chapter, effective with respect to the Presidential election held in
2028 and each succeeding Presidential election, all payments made under
this chapter shall be made from the Freedom From Influence Fund
established under title III of the Empower Act of 2021.
``(b) Mandatory Reduction of Payments in Case of Insufficient
Amounts in Fund.--
``(1) Advance audits by commission.--Not later than 90 days
before the first day of each Presidential election cycle
(beginning with the cycle for the election held in 2028), the
Commission shall--
``(A) audit the Fund to determine whether, after
first making payments to candidates under chapter 96,
the amounts remaining in the Fund will be sufficient to
make payments to candidates under this chapter in the
amounts provided under this chapter during such
election cycle; and
``(B) submit a report to Congress describing the
results of the audit.
``(2) Reductions in amount of payments.--
``(A) Automatic reduction on pro rata basis.--If,
on the basis of the audit described in paragraph (1),
the Commission determines that the amount anticipated
to be available in the Fund with respect to the
Presidential election cycle involved is not, or may not
be, sufficient to satisfy the full entitlements of
candidates to payments under this chapter for such
cycle, the Commission shall reduce each amount which
would otherwise be paid to a candidate under this
chapter by such pro rata amount as may be necessary to
ensure that the aggregate amount of payments
anticipated to be made with respect to the cycle will
not exceed the amount anticipated to be available for
such payments in the Fund with respect to such cycle.
``(B) Restoration of reductions in case of
availability of sufficient funds during election
cycle.--If, after reducing the amounts paid to
candidates with respect to an election cycle under
subparagraph (A), the Commission determines that there
are sufficient amounts in the Fund to restore the
amount by which such payments were reduced (or any
portion thereof), to the extent that such amounts are
available, the Commission may make a payment on a pro
rata basis to each such candidate with respect to the
election cycle in the amount by which such candidate's
payments were reduced under subparagraph (A) (or any
portion thereof, as the case may be).
``(C) No use of amounts from other sources.--In any
case in which the Commission determines that there are
insufficient moneys in the Fund to make payments to
candidates under this chapter, moneys shall not be made
available from any other source for the purpose of
making such payments.
``(3) No effect on amounts transferred for pediatric
research initiative.--This section does not apply to the
transfer of funds under section 9008(i).
``(4) Presidential election cycle defined.--In this
section, the term `Presidential election cycle' means, with
respect to a Presidential election, the period beginning on the
day after the date of the previous Presidential general
election and ending on the date of the Presidential
election.''.
(b) Clerical Amendment.--The table of sections for chapter 95 of
subtitle H of such Code is amended by adding at the end the following
new item:
``Sec. 9013. Use of Freedom From Influence Fund as source of
payments.''.
TITLE III--FREEDOM FROM INFLUENCE FUND
SEC. 301. FREEDOM FROM INFLUENCE FUND.
(a) Establishment.--There is established in the Treasury a fund to
be known as the ``Freedom From Influence Fund''.
(b) Amounts Held by Fund.--The Fund shall consist of amounts
transferred under section 3015 of title 18, United States Code (as
added by section 302(a)), section 9706 of title 31, United States Code
(as added by section 302(b)), and section 6761 of the Internal Revenue
Code of 1986 (as added by section 302(c)).
(c) Use of Fund To Make Payments to Candidates.--Amounts in the
Fund shall be available without further appropriation or fiscal year
limitation--
(1) to make payments to candidates under chapter 95 of
subtitle H of the Internal Revenue Code of 1986, subject to
reductions under section 9013(b) of such Code; and
(2) to make payments to candidates under chapter 96 of
subtitle H of the Internal Revenue Code of 1986, subject to
reductions under section 9043(b) of such Code.
(d) Effective Date.--This section shall take effect on the date of
the enactment of this title.
SEC. 302. ASSESSMENTS AGAINST FINES AND PENALTIES.
(a) Assessments Relating to Criminal Offenses.--
(1) In general.--Chapter 201 of title 18, United States
Code, is amended by adding at the end the following new
section:
``Sec. 3015. Special assessments for Freedom From Influence Fund
``(a) Assessments.--
``(1) Convictions of crimes.--In addition to any assessment
imposed under this chapter, the court shall assess on any
organizational defendant or any defendant who is a corporate
officer or person with equivalent authority in any other
organization who is convicted of a criminal offense under
Federal law an amount equal to 4.75 percent of any fine imposed
on that defendant in the sentence imposed for that conviction.
``(2) Settlements.--The court shall assess on any
organizational defendant or defendant who is a corporate
officer or person with equivalent authority in any other
organization who has entered into a settlement agreement or
consent decree with the United States in satisfaction of any
allegation that the defendant committed a criminal offense
under Federal law an amount equal to 4.75 percent of the amount
of the settlement.
``(b) Manner of Collection.--An amount assessed under subsection
(a) shall be collected in the manner in which fines are collected in
criminal cases.
``(c) Transfers.--In a manner consistent with section 3302(b) of
title 31, there shall be transferred from the General Fund of the
Treasury to the Freedom From Influence Fund under title III of the
Empower Act of 2021 an amount equal to the amount of the assessments
collected under this section.''.
(2) Clerical amendment.--The table of sections of chapter
201 of title 18, United States Code, is amended by adding at
the end the following:
``3015. Special assessments for Freedom From Influence Fund.''.
(b) Assessments Relating to Civil Penalties.--
(1) In general.--Chapter 97 of title 31, United States
Code, is amended by adding at the end the following new
section:
``Sec. 9706. Special assessments for Freedom From Influence Fund
``(a) Assessments.--
``(1) Civil penalties.--Any entity of the Federal
Government which is authorized under any law, rule, or
regulation to impose a civil penalty shall assess on each
person, other than a natural person who is not a corporate
officer or person with equivalent authority in any other
organization, on whom such a penalty is imposed an amount equal
to 4.75 percent of the amount of the penalty.
``(2) Administrative penalties.--Any entity of the Federal
Government which is authorized under any law, rule, or
regulation to impose an administrative penalty shall assess on
each person, other than a natural person who is not a corporate
officer or person with equivalent authority in any other
organization, on whom such a penalty is imposed an amount equal
to 4.75 percent of the amount of the penalty.
``(3) Settlements.--Any entity of the Federal Government
which is authorized under any law, rule, or regulation to enter
into a settlement agreement or consent decree with any person,
other than a natural person who is not a corporate officer or
person with equivalent authority in any other organization, in
satisfaction of any allegation of an action or omission by the
person which would be subject to a civil penalty or
administrative penalty shall assess on such person an amount
equal to 4.75 percent of the amount of the settlement.
``(b) Manner of Collection.--An amount assessed under subsection
(a) shall be collected--
``(1) in the case of an amount assessed under paragraph (1)
of such subsection, in the manner in which civil penalties are
collected by the entity of the Federal Government involved;
``(2) in the case of an amount assessed under paragraph (2)
of such subsection, in the manner in which administrative
penalties are collected by the entity of the Federal Government
involved; and
``(3) in the case of an amount assessed under paragraph (3)
of such subsection, in the manner in which amounts are
collected pursuant to settlement agreements or consent decrees
entered into by the entity of the Federal Government involved.
``(c) Transfers.--In a manner consistent with section 3302(b) of
this title, there shall be transferred from the General Fund of the
Treasury to the Freedom From Influence Fund under title III of the
Empower Act of 2021 an amount equal to the amount of the assessments
collected under this section.
``(d) Exception for Penalties and Settlements Under Authority of
the Internal Revenue Code of 1986.--
``(1) In general.--No assessment shall be made under
subsection (a) with respect to any civil or administrative
penalty imposed, or any settlement agreement or consent decree
entered into, under the authority of the Internal Revenue Code
of 1986.
``(2) Cross reference.--For application of special
assessments for the Freedom From Influence Fund with respect to
certain penalties under the Internal Revenue Code of 1986, see
section 6761 of the Internal Revenue Code of 1986.''.
(2) Clerical amendment.--The table of sections of chapter
97 of title 31, United States Code, is amended by adding at the
end the following:
``9706. Special assessments for Freedom From Influence Fund.''.
(c) Assessments Relating to Certain Penalties Under the Internal
Revenue Code of 1986.--
(1) In general.--Chapter 68 of the Internal Revenue Code of
1986 is amended by adding at the end the following new
subchapter:
``Subchapter D--Special Assessments for Freedom From Influence Fund
``SEC. 6761. SPECIAL ASSESSMENTS FOR FREEDOM FROM INFLUENCE FUND.
``(a) In General.--Each person required to pay a covered penalty
shall pay an additional amount equal to 4.75 percent of the amount of
such penalty.
``(b) Covered Penalty.--For purposes of this section, the term
`covered penalty' means any addition to tax, additional amount,
penalty, or other liability provided under subchapter A or B.
``(c) Exception for Certain Individuals.--
``(1) In general.--In the case of a taxpayer who is an
individual, subsection (a) shall not apply to any covered
penalty if such taxpayer is an exempt taxpayer for the taxable
year for which such covered penalty is assessed.
``(2) Exempt taxpayer.--For purposes of this subsection, a
taxpayer is an exempt taxpayer for any taxable year if the
taxable income of such taxpayer for such taxable year does not
exceed the dollar amount at which begins the highest rate
bracket in effect under section 1 with respect to such taxpayer
for such taxable year.
``(d) Application of Certain Rules.--Except as provided in
subsection (e), the additional amount determined under subsection (a)
shall be treated for purposes of this title in the same manner as the
covered penalty to which such additional amount relates.
``(e) Transfer to Freedom From Influence Fund.--The Secretary shall
deposit any additional amount under subsection (a) in the General Fund
of the Treasury and shall transfer from such General Fund to the
Freedom From Influence Fund established under section title III of the
Empower Act of 2021 an amount equal to the amounts so deposited (and,
notwithstanding subsection (d), such additional amount shall not be the
basis for any deposit, transfer, credit, appropriation, or any other
payment, to any other trust fund or account). Rules similar to the
rules of section 9601 shall apply for purposes of this subsection.''.
(2) Clerical amendment.--The table of subchapters for
chapter 68 of such Code is amended by adding at the end the
following new item:
``subchapter d--special assessments for freedom from influence fund''.
(d) Effective Dates.--
(1) In general.--Except as provided in paragraph (2), the
amendments made by this section shall apply with respect to
convictions, agreements, and penalties which occur on or after
the date of the enactment of this Act.
(2) Assessments relating to certain penalties under the
internal revenue code of 1986.--The amendments made by
subsection (c) shall apply to covered penalties assessed after
the date of the enactment of this Act.
TITLE IV--EFFECTIVE DATE
SEC. 401. EFFECTIVE DATE.
(a) In General.--Except as otherwise provided, this Act and the
amendments made by this Act shall apply with respect to the
Presidential election held in 2028 and each succeeding Presidential
election, without regard to whether or not the Federal Election
Commission has promulgated the final regulations necessary to carry out
this Act and the amendments made by this Act by the deadline set forth
in subsection (b).
(b) Deadline for Regulations.--Not later than June 30, 2026, the
Federal Election Commission shall promulgate such regulations as may be
necessary to carry out this Act and the amendments made by this Act.
<all>
Introduced in House
Introduced in House
Referred to the Committee on House Administration, and in addition to the Committees on Ways and Means, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on House Administration, and in addition to the Committees on Ways and Means, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on House Administration, and in addition to the Committees on Ways and Means, and the Judiciary, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on the Constitution, Civil Rights, and Civil Liberties.
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