Section 1 Short title
This Act may be cited as the “Campaign Funds Integrity Act of 2026”.
Campaign Funds Integrity Act of 2026
A BILL
To prohibit the use of campaign funds for prediction-market transactions, and for other purposes.
Sec. 2 Prohibition on use of campaign funds for certain financial transactions
In general— Section 324 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30126) is amended to read as follows:
“324. Prohibition on use of campaign funds for certain speculative financial transactions
“(a) Prohibition—A candidate, authorized committee, or other political committee shall not use campaign funds to participate in any prediction market or event contract, including any contract or instrument whose value is derived from the outcome of an election, legislative action, regulatory decision, or other political or economic event.
“(b) Enforcement and penalties
“(1) In general—Any violation of this section shall be considered pursuant to the enforcement procedures under section 309, including with respect to the civil penalties authorized under such section.
“(2) Knowing and willful violations—Any person who knowingly and willfully commits a violation of this section shall be subject to criminal penalties under section 309(d), which may include fines under title 18, United States Code, imprisonment of not more than 5 years, or both.
“(c) Referral to Department of Justice—The Federal Election Commission may refer apparent knowing and willful violations to the U.S. Department of Justice for criminal prosecution in accordance with section 309(a)(5)(C).
“(d) Regulations—The Federal Election Commission shall promulgate regulations to carry out this section, including guidance on permissible financial instruments and compliance requirements.
“(e) Rule of construction—Nothing in this section shall be construed to prohibit the use of campaign funds for—
“(1) deposits in insured depository institutions;
“(2) investments in diversified mutual funds or exchange-traded funds; or
“(3) other low-risk financial instruments as may be permitted by the Commission.
“(f) Definitions—For purposes of this section:
“(1) The term campaign funds means contributions or donations received by a candidate, authorized committee, or other political committee subject to this Act.
“(2) The term prediction market or event contract means any agreement, contract, transaction, or instrument that provides for payment based on the outcome of a future event, including political, economic, or regulatory events.”
Effective date— This section and the amendment made by this section shall take effect on the date that is 120 days after the date of the enactment of this Act.