Federal litigation funding transparency legislation has been introduced in the U.S. Senate. The bill would require the disclosure of third party litigation funding arrangements in class action and multidistrict litigation at the outset of federal cases. Judiciary Committee members Sens. Chuck Grassley (R-Iowa), Thom Tillis (R-North Carolina), John Cornyn (R-Texas), and Ben Sasse (R-Nebraska) reintroduced the bill, which stalled in the 2017-18 Congress.

Wisconsin led the nation on litigation funding transparency by passing 2017 Act 235 last session. The legislation provided that that, unless stipulated or ordered by the court, a party shall provide to the other parties any agreement under which any person, other than an attorney permitted to charge a contingent fee for representing a party, has a right to receive compensation that is contingent on and sourced from any proceeds of the civil action, by settlement, judgement, or otherwise. Read more about Act 235 here: https://www.wisciviljusticecouncil.org/policy-project/civil-litigation-reform-bill-2017-18/.