H.R. 2025House117th Congress (2021-2023)In Committee

Litigation Funding Transparency Act of 2021

Introduced March 18, 2021

AI-Generated Summary

Updated February 8, 2026 at 12:44 AM UTC

The Litigation Funding Transparency Act of 2021 amends the federal courts’ rules to require greater openness about third‑party litigation financing. It obligates class counsel and parties in coordinated or consolidated pre‑trial proceedings to reveal any commercial funder that stands to receive a contingent payment, and to make the funding agreement available for inspection. The rules apply to any case that begins after the law takes effect.

Key Provisions

  • In class actions, the lead counsel must disclose in writing the identity of any non‑party commercial funder that has a contingent right to payment and must provide the funding agreement for court and party inspection.
  • The disclosure must be made no later than the later of 10 days after the funder agreement is signed or the date the lawsuit is served.
  • In multidistrict litigation, counsel for parties must similarly disclose funder identities and agreements in coordinated or consolidated pre‑trial proceedings, with the same 10‑day timing rule.
  • These amendments apply only to cases filed or pending after the act’s enactment date.

Legislative Activity

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2 earlier actions
HouseCommittee Latest Action

Referred to the Subcommittee on Courts, Intellectual Property, and the Internet.

October 19, 2021

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HouseIntro Referral

Introduced in House

March 18, 2021

HouseIntro Referral

Referred to the House Committee on the Judiciary.

March 18, 2021

HouseCommittee

Referred to the Subcommittee on Courts, Intellectual Property, and the Internet.

October 19, 2021

Floor Debate

13 members

What members said about H.R. 2025 on the floor

6 Republicans7 Democrats
Frank D. Lucas
Rep. Frank D. LucasR-OK-3 · Jun 28, 2021

Mr. Speaker, I yield myself such time as I may consume. Mr. Speaker, I rise in strong support of H.R. 2225, the National Science Foundation for the Future Act. This legislation is one of two Science…

Eddie Bernice Johnson
Rep. Eddie Bernice JohnsonD-TX-30 · Jun 28, 2021

Mr. Speaker, I move to suspend the rules and pass the bill (H.R. 2225) to authorize appropriations for fiscal years 2022, 2023, 2024, 2025, and 2026 for the National Science Foundation, and for other…

Sheila Jackson Lee
Rep. Sheila Jackson LeeD-TX-18 · Jun 28, 2021

-Mr. Speaker, I rise to speak in proud support of H.R. 2225, the ``National Science foundation for the Future Act,'' which authorizes appropriations for the National Science Foundation for the next…

Haley M. Stevens
Rep. Haley M. StevensD-MI-11 · Jun 28, 2021

Mr. Speaker, I rise in support of the NSF for the Future Act, a bipartisan bill to revitalize one of the most important pillars of our Federal Government's investments in innovation, the National…

Michael Waltz
Rep. Michael WaltzR-FL-6 · Jun 28, 2021

Mr. Speaker, I rise in support of H.R. 2225, the NSF for the Future Act, which I am proud to be an original cosponsor of, along with Chairwoman Johnson, Ranking Member Lucas, and Chairwoman Stevens.…

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Jay Obernolte
Rep. Jay ObernolteR-CA-8 · Jun 28, 2021

Mr. Speaker, I rise in strong support of H.R. 2225, the National Science Foundation for the Future Act. Mr. Speaker, I have been increasingly alarmed over the last few months at the foreign-based…

Young Kim
Rep. Young KimR-CA-39 · Jun 28, 2021

Mr. Speaker, I rise today in support of H.R. 2225, the NSF for the Future Act, legislation that invests in our country's future through targeted investments in research and innovation at the…

Mr. Speaker, H.R. 2225, the National Science Foundation for the Future Act, includes my bill, H.R. 3795, to ensure educators from the Northern Mariana Islands, Virgin Islands, Guam, and American…

Bill Foster
Rep. Bill FosterD-IL-11 · Jun 28, 2021

Mr. Speaker, today we are considering H.R. 2225, the NSF for the Future Act; and H.R. 3593, the DOE Science for the Future Act. Both are tributes to the thoughtful bipartisanship of the leadership…

Randy Feenstra
Rep. Randy FeenstraR-IA-4 · Jun 28, 2021

Mr. Speaker, I thank Chairwoman Johnson and Ranking Member Lucas for all the work they have done on this bill. Mr. Speaker, I rise today in support of the National Science Foundation for the Future…

Zoe Lofgren
Rep. Zoe LofgrenD-CA-19 · Jun 28, 2021

Mr. Speaker, I thank Chairwoman Johnson and Ranking Member Lucas for their extraordinary bipartisan leadership on these bills. These two bills recognize the urgency of Federal scientific investment.…

Deborah K. Ross
Rep. Deborah K. RossD-NC-2 · Jun 28, 2021

Mr. Speaker, I rise today to highlight the NSF for the Future Act, a critical piece of legislation that would bolster our Nation's research enterprise and enhance our status as a world leader in…

H. Morgan Griffith
Rep. H. Morgan GriffithR-VA-9 · Jun 28, 2021

Mr. Speaker, on that I demand the yeas and nays.

Bill Text

Latest available legislative text

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Introduced in HouseIssued March 18, 2021

I

117th CONGRESS

1st Session

H. R. 2025

IN THE HOUSE OF REPRESENTATIVES

March 18, 2021

Mr. Issa introduced the following bill; which was referred to the Committee on the Judiciary

A BILL

To amend title 28, United States Code, to increase transparency and oversight of third-party litigation funding in certain actions, and for other purposes.

1.

Short title

This Act may be cited as the Litigation Funding Transparency Act of 2021.

2.

Transparency and oversight of third-party litigation funding in class actions

(a)

In general

Chapter 114 of title 28, United States Code, is amended by adding at the end the following:

1716.

Third-party litigation funding disclosure

(a)

In general

In any class action, class counsel shall—

(1)

disclose in writing to the court and all other named parties to the class action the identity of any commercial enterprise, other than a class member or class counsel of record, that has a right to receive payment that is contingent on the receipt of monetary relief in the class action by settlement, judgment, or otherwise; and

(2)

produce for inspection and copying, except as otherwise stipulated or ordered by the court, any agreement creating the contingent right.

(b)

Timing

The disclosure required by subsection (a) shall be made not later than the later of—

(1)

10 days after execution of any agreement described in subsection (a)(2); or

(2)

the time of service of the action.

.

(b)

Technical and conforming amendment

The table of sections for chapter 114 of title 28, United States Code, is amended by adding at the end the following:

.

3.

Transparency and oversight of third-party litigation funding in multidistrict litigation

Section 1407 of title 28, United States Code, is amended—

(1)

by redesignating subsections (g) and (h) as subsections (h) and (i), respectively; and

(2)

by inserting after subsection (f) the following:

(g)
(1)

In any coordinated or consolidated pretrial proceedings conducted pursuant to this section, counsel for a party asserting a claim whose civil action is assigned to or directly filed in the proceedings shall—

(A)

disclose in writing to the court and all other parties the identity of any commercial enterprise, other than the named parties or counsel, that has a right to receive payment that is contingent on the receipt of monetary relief in the civil action by settlement, judgment, or otherwise; and

(B)

produce for inspection and copying, except as otherwise stipulated or ordered by the court, any agreement creating the contingent right.

(2)

The disclosure required by paragraph (1) shall be made not later than the later of—

(A)

10 days after execution of any agreement described in paragraph (1)(B); or

(B)

the time the civil action becomes subject to this section.

.

4.

Applicability

The amendments made by this Act shall apply to any case pending on or commenced after the date of the enactment of this Act.