Requiring authorized committees of candidates to disburse funds remaining unexpended after date of election

(a) Requiring disbursement Title III of the Federal Election Campaign Act of 1971 (52 U.S.C. 30101 et seq.) is amended by inserting after section 303 the following new section: 303A. Disbursement of funds remaining unexpended after date of election (a) Requiring disbursement (1) In general Each authorized committee or leadership PAC of a candidate shall, in accordance with subsection (b) and prior to the expiration of the applicable disbursement period, disburse any funds of the committee or PAC before the earliest of— (A) the last day of the applicable disbursement period; (B) the date on which the candidate first makes a lobbying contact or is employed or retained to make a lobbying contact that would require registration under section 4 of the Lobbying Disclosure Act of 1995 (2 U.S.C. 1603); or (C) the date on which the candidate becomes an agent of a foreign principal that would require registration under section 2 of the Foreign Agents Registration Act of 1938, as amended (22 U.S.C. 612). (2) Exception for candidates in next election Paragraph (1) does not apply to the committee or PAC of a candidate who, prior to the first day of the applicable disbursement period, provides the appropriate State election official with the information and fees (if any) required under State law for the individual to qualify as a candidate for the next election for the office sought by the candidate or the next election for another Federal office. (3) Applicable disbursement period In this subsection, the applicable disbursement period is, with respect to a candidate seeking election for an office, the 2-year period which begins on the day after the latest date on which an individual may provide the appropriate State election official with the information and fees (if any) required under State law for the individual to qualify as a candidate for the next election for such office. (b) Rules for disbursement of funds (1) Payment of obligations In carrying out subsection (a), an authorized committee or leadership PAC shall first disburse funds to pay obligations incurred in connection with the operation of the committee. (2) Other permitted disbursements If, after disbursing all of the funds necessary to pay obligations under paragraph (1), funds of a committee or PAC remain unexpended, the committee or PAC may only disburse the funds for any of the following purposes, in such manner and combination as the committee or PAC considers appropriate: (A) To return to any person a contribution the person made to the committee or PAC. (B) To make a contribution to an organization described in section 170(c) of the Internal Revenue Code of 1986. (C) To make a transfer without limitation to a national, State, or local committee of a political party. (c) Restrictions on disbursement to relatives (1) Restriction In disbursing funds pursuant to the requirements of this section, an authorized committee or leadership PAC may not disburse funds to a relative of the candidate unless the funds are disbursed to pay an obligation of the committee as described in paragraph (1) of subsection (b) which is reported by the committee or PAC as a disbursement under section 304(b)(5) or which would be so reported if the amount of the disbursement were in excess of $200. (2) Relative defined In this subsection, the term relative means, with respect to a candidate, an individual who is related to the candidate as father, mother, son, daughter, brother, sister, uncle, aunt, first cousin, nephew, niece, husband, wife, father-in-law, mother-in-law, son-in-law, daughter-in-law, brother-in-law, sister-in-law, stepfather, stepmother, stepson, stepdaughter, stepbrother, stepsister, half brother, or half sister. (d) Definition In this section, the term leadership PAC has the meaning given such term in section 304(i)(8)(B).. (b) Conforming amendment relating to permitted uses of contributions Section 313(a) of such Act (52 U.S.C. 30114(a)) is amended by striking A contribution and inserting Subject to section 303A, a contribution. (c) Effective date The amendments made by this section shall apply with respect to the regularly scheduled general election for Federal office held in November 2026 and each succeeding election for Federal office.