Inaugural Committee Transparency Act of 2025: New Rules for Leftover Funds and Donor Disclosure

This bill changes the rules for how Presidential Inaugural Committees handle their money, focusing on transparency and preventing misuse of funds. It sets clear requirements for disclosing donations and spending, and it addresses what happens to any cash left over after the party's over.

Dollars and Disclosure

The Inaugural Committee Transparency Act of 2025 amends Section 510 of title 36, United States Code. The core change? Any spending by the committee that's $200 or more must be publicly disclosed, along with a description of why the money was spent. Think of it like this: if the committee buys 500 pens for $250, they have to report it, and they can't just say "office supplies." They need to say what those supplies were for.

This is a step up in making these committees – which, remember, are handling private donations, not taxpayer dollars – more accountable for how they operate. It's like switching from a vague IOU to a detailed receipt.

Foreign Funds and Funny Business

The bill also tackles who can donate and how that money can be used:

• No Foreign Money: The Act explicitly prohibits foreign nationals from donating, either directly or through someone else. This closes a potential loophole for foreign influence in the inauguration process.
• No Straw Donors: You can't give money in someone else's name, and the committee can't knowingly accept it. This prevents people from skirting donation limits or hiding their identities.
• No Personal Use: Donations can't be converted to personal use. This is a pretty straightforward rule – the money raised is for the inauguration, not for personal enrichment.

Leftover Loot: Charity's the Winner

One of the most interesting parts of this bill addresses what happens to any money left over after the inauguration. Within 90 days of the ceremony, any remaining funds must be donated to a 501(c)(3) organization – basically, a registered charity. The Federal Election Commission (FEC) can grant an extension, but the committee has to file a supplemental report explaining why.

This part is potentially significant. It means that instead of sitting in a bank account or being used for other purposes, leftover inaugural funds will go to organizations that are supposed to be serving the public good. While the bill doesn't specify which 501(c)(3) gets the money (a potential point of future scrutiny – could a committee funnel money to a charity they're closely tied to?), it's a step toward ensuring these funds are used for charitable purposes.

Real-World Impact

Imagine a small business owner who donates to an Inaugural Committee. Under this new law, they'll be able to see how that committee spends its money, down to the $200 level. Or consider a nonprofit that benefits from a large donation of leftover inaugural funds – that's a direct, positive impact. While the bill deals with a specific, relatively short-lived event, the principles of transparency and accountability it promotes are relevant far beyond the inauguration itself.