This bill mandates that former candidates' campaign committees and PACs must spend down remaining funds within two years after an election, unless the candidate runs again, and requires former candidates who become lobbyists or foreign agents to certify compliance with these disbursement rules.
Kathy Castor
Representative
FL-14
The Honest Elections and Campaign, No Gain Act mandates that candidates' leftover campaign funds must be spent down within two years after an election, unless the candidate immediately runs again. Remaining funds must be used to pay debts or donated to specific political or charitable organizations. Furthermore, former candidates who become registered lobbyists or foreign agents must certify that their past campaign committees complied with these new disbursement rules. These provisions take effect starting with the general federal elections in November 2026.
New Ethics Bill Forces Candidates to Spend Down Leftover Campaign Cash by 2026
The new Honest Elections and Campaign, No Gain Act is changing the rules for what happens to campaign money once the election signs come down. Starting with the 2026 federal elections, authorized campaign committees and leadership PACs can no longer hoard unspent cash indefinitely. Instead, they must disburse any remaining funds within two years after the deadline to qualify for the next election for that office, according to Section 2 of the Act.
The Two-Year Clock: No More Slush Funds
Think of this as a hard deadline for political savings accounts. Once the two-year clock starts ticking, committees must first use the cash to pay off any outstanding debts or obligations. If there’s still money left over, they have three approved ways to spend it: refunding the original donors, donating it to a qualified tax-exempt organization (like a charity), or transferring it without limit to a national, state, or local political party committee. This provision is designed to prevent former officeholders from maintaining massive, long-term war chests that can function like personal slush funds or sources of undue influence.
There is one major exception to the two-year spending rule: if the candidate files the necessary paperwork and fees to run in the very next election for the same or another federal office, they get a pass on spending down the money. This is meant to protect active candidates, but it also creates a potential loophole. A candidate could theoretically file for re-election with little intention of running, simply to keep control of the funds, though they would still need to follow through with the required paperwork and fees.
New Rules for Family Paychecks
Another key change addresses how campaign money interacts with a candidate’s family. The bill specifically restricts committees from paying a candidate’s relative using the leftover funds, unless that payment is specifically to cover a documented committee obligation. The definition of "relative" here is broad, covering everyone from spouses to first cousins (SEC. 2). This means if a candidate’s spouse was legitimately paid for campaign work and that expense was properly reported, the committee can pay that debt. However, the committee can’t just cut a bonus check to a sibling or an in-law once the campaign is over, closing a common avenue for converting campaign money to quasi-personal use.
Accountability for the Revolving Door
The Act also tightens the screws on candidates who transition into lobbying or foreign agent work. Under Sections 3 and 4, former candidates who register as lobbyists under the Lobbying Disclosure Act or as foreign agents under the Foreign Agents Registration Act must now include a certification that all their associated campaign committees have complied with these new disbursement requirements. Essentially, before you can officially start working the influence game in D.C. or for a foreign government, you have to prove your old campaign finances are squared away. This creates a compliance checkpoint at the exact moment a former official enters the revolving door, ensuring that any lingering campaign funds are dealt with before they start their new career.