Congress tightens campaign finance rules: all donations now disclosed, straw gifts banned

What it does

This bill tightens campaign finance disclosure rules by requiring donors making online political contributions via credit or debit card to provide card verification codes, billing ZIP codes, and proof of identity (passport, voter registration, or permanent resident card). It also prohibits contributions made with gift cards, requires the cardholder's name to match the donor's name, removes the $200 reporting threshold so all contributions must be disclosed, and creates a duty for campaigns to report suspected straw donations. The Federal Election Commission has 90 days to write implementing rules.

Why we flagged it

The bill's core mechanism is disclosure and verification of online political donations to prevent straw donations, anonymous contributions, and gift-card workarounds. It is fundamentally a transparency and anti-fraud measure, not a restriction on donation amounts or a partisan gerrymander of the rules.

What the text implies

• Requiring passport or permanent resident card copies may create a chilling effect on donations from non-citizen permanent residents, even though they are lawfully permitted to donate under current law.
• The removal of the $200 reporting threshold means campaigns must now disclose and track every single contribution, including $1 donations, creating significant administrative burden and data-storage liability for small campaigns and grassroots committees.
• Digital wallet contributions are exempted from verification requirements, potentially creating a new loophole for anonymous donations if digital wallet providers do not retain identity information.
• The 90-day FEC rulemaking window is tight for a complex set of requirements involving payment networks, identity verification, and recurring-contribution logic; ambiguous regulations could lead to inconsistent enforcement.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

The bill strengthens transparency and anti-fraud protections in campaign finance by closing loopholes that allow anonymous or disguised donations and straw-donor schemes. Ordinary citizens gain visibility into who is funding political campaigns and campaigns gain clearer tools to prevent illegal contributions, though compliance costs may modestly increase for small-dollar online fundraising.

Who stands to gain

• payment card networks (compliance consulting)
• campaign finance software vendors (enhanced tracking/reporting tools)
• identity verification service providers

Named in the bill

Federal Election Commission, Federal Election Campaign Act of 1971, Electronic Fund Transfer Act, Department of Homeland Security, payment card networks, political committees, digital wallet providers

Where it stands

2 cosponsors: 2 Republicans.

• May 11, 2026 — Introduced · Congress.gov: “Introduced in House”
• May 11, 2026 — Referred to House Committee on House Administration · Congress.gov: “Referred to the House Committee on House Administration”
• May 14, 2026 — Markup held in committee · Congress.gov: “Committee Consideration and Mark-up Session Held”
• May 14, 2026 — Reported out of committee · Congress.gov: “Ordered to be Reported in the Nature of a Substitute by the Yeas and Nays: 11 - 0”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.