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[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[H.R. 8572 Introduced in House (IH)]

<DOC>

118th CONGRESS
  2d Session
                                H. R. 8572

To direct the Federal Election Commission to establish a program under 
  which participating States shall provide individuals with vouchers 
which may be used to make contributions to candidates for election for 
 the office of Representative in, or Delegate or Resident Commissioner 
to, the Congress, to amend the Federal Election Campaign Act of 1971 to 
 establish a program to provide small dollar financing for candidates 
   for election for the office of Representative in, or Delegate or 
    Resident Commissioner to, the Congress, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                              May 24, 2024

Mr. Sarbanes (for himself, Mr. Neguse, Ms. Clarke of New York, and Ms. 
   Pingree) introduced the following bill; which was referred to the 
Committee on House Administration, and in addition to the Committees on 
  the Judiciary, and Ways and Means, for a period to be subsequently 
   determined by the Speaker, in each case for consideration of such 
 provisions as fall within the jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL

 
To direct the Federal Election Commission to establish a program under 
  which participating States shall provide individuals with vouchers 
which may be used to make contributions to candidates for election for 
 the office of Representative in, or Delegate or Resident Commissioner 
to, the Congress, to amend the Federal Election Campaign Act of 1971 to 
 establish a program to provide small dollar financing for candidates 
   for election for the office of Representative in, or Delegate or 
    Resident Commissioner to, the Congress, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Government by the 
People Act''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                TITLE I--MY VOICE VOUCHER PILOT PROGRAM

Sec. 101. Establishment of pilot program.
Sec. 102. Voucher program described.
Sec. 103. Reports.
Sec. 104. Definitions.
  TITLE II--SMALL DOLLAR FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS

Sec. 201. Benefits and eligibility requirements for candidates.
 ``TITLE V--SMALL DOLLAR FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS

                         ``Subtitle A--Benefits

        ``Sec. 501. Benefits for participating candidates.
        ``Sec. 502. Procedures for making payments.
        ``Sec. 503. Use of funds.
        ``Sec. 504. Qualified small dollar contributions described.
              ``Subtitle B--Eligibility and Certification

        ``Sec. 511. Eligibility.
        ``Sec. 512. Qualifying requirements.
        ``Sec. 513. Certification.
 ``Subtitle C--Requirements for Candidates Certified as Participating 
                               Candidates

        ``Sec. 521. Contribution and expenditure requirements.
        ``Sec. 522. Administration of campaign.
        ``Sec. 523. Preventing unnecessary spending of public funds.
        ``Sec. 524. Remitting unspent funds after election.
                  ``Subtitle D--Enhanced Match Support

        ``Sec. 531. Enhanced support for general election.
        ``Sec. 532. Eligibility.
        ``Sec. 533. Amount.
        ``Sec. 534. Waiver of authority to retain portion of unspent 
                            funds after election.
                ``Subtitle E--Administrative Provisions

        ``Sec. 541. Freedom From Influence Fund.
        ``Sec. 542. Reviews and reports by Government Accountability 
                            Office.
        ``Sec. 543. Administration by Commission.
        ``Sec. 544. Violations and penalties.
        ``Sec. 545. Appeals process.
        ``Sec. 546. Indexing of amounts.
        ``Sec. 547. Election cycle defined.
Sec. 202. Contributions and expenditures by multicandidate and 
                            political party committees on behalf of 
                            participating candidates.
Sec. 203. Prohibiting use of contributions by participating candidates 
                            for purposes other than campaign for 
                            election.
Sec. 204. Assessments against fines and penalties.
Sec. 205. Study and report on small dollar financing program.
Sec. 206. Effective date.

                TITLE I--MY VOICE VOUCHER PILOT PROGRAM

SEC. 101. ESTABLISHMENT OF PILOT PROGRAM.

    (a) Establishment.--The Federal Election Commission (hereafter in 
this part referred to as the ``Commission'') shall establish a pilot 
program under which the Commission shall select 3 eligible States to 
operate a voucher pilot program which is described in section 102 
during the program operation period.
    (b) Eligibility of States.--A State is eligible to be selected to 
operate a voucher pilot program under this part if, not later than 180 
days after the beginning of the program application period, the State 
submits to the Commission an application containing--
            (1) information and assurances that the State will operate 
        a voucher program which contains the elements described in 
        section 102(a);
            (2) information and assurances that the State will 
        establish fraud prevention mechanisms described in section 
        102(b);
            (3) information and assurances that the State will 
        establish a commission to oversee and implement the program as 
        described in section 102(c);
            (4) information and assurances that the State will carry 
        out a public information campaign as described in section 
        102(d);
            (5) information and assurances that the State will submit 
        reports as required under section 103; and
            (6) such other information and assurances as the Commission 
        may require.
    (c) Selection of Participating States.--
            (1) In general.--Not later than 1 year after the beginning 
        of the program application period, the Commission shall select 
        the 3 States which will operate voucher pilot programs under 
        this part.
            (2) Criteria.--In selecting States for the operation of the 
        voucher pilot programs under this part, the Commission shall 
        apply such criteria and metrics as the Commission considers 
        appropriate to determine the ability of a State to operate the 
        program successfully, and shall attempt to select States in a 
        variety of geographic regions and with a variety of political 
        party preferences.
            (3) No supermajority required for selection.--The selection 
        of States by the Commission under this subsection shall require 
        the approval of only half of the Members of the Commission.
    (d) Duties of States During Program Preparation Period.--During the 
program preparation period, each State selected to operate a voucher 
pilot program under this part shall take such actions as may be 
necessary to ensure that the State will be ready to operate the program 
during the program operation period, and shall complete such actions 
not later than 90 days before the beginning of the program operation 
period.
    (e) Termination.--Each voucher pilot program under this part shall 
terminate as of the first day after the program operation period.
    (f) Reimbursement of Costs.--
            (1) Reimbursement.--Upon receiving the report submitted by 
        a State under section 103(a) with respect to an election cycle, 
        the Commission shall transmit a payment to the State in an 
        amount equal to the reasonable costs incurred by the State in 
        operating the voucher pilot program under this part during the 
        cycle.
            (2) Source of funds.--Payments to States under the program 
        shall be made using amounts in the Freedom From Influence Fund 
        under section 541 of the Federal Election Campaign Act of 1971 
        (as added by section 201), hereafter referred to as the 
        ``Fund''.
            (3) Mandatory reduction of payments in case of insufficient 
        amounts in freedom from influence fund.--
                    (A) Advance audits by commission.--Not later than 
                90 days before the first day of each program operation 
                period, the Commission shall--
                            (i) audit the Fund to determine whether, 
                        after first making payments to participating 
                        candidates under title V of the Federal 
                        Election Campaign Act of 1971 (as added by 
                        section 201), the amounts remaining in the Fund 
                        will be sufficient to make payments to States 
                        under this part in the amounts provided under 
                        this subsection; and
                            (ii) submit a report to Congress describing 
                        the results of the audit.
                    (B) Reductions in amount of payments.--
                            (i) Automatic reduction on pro rata 
                        basis.--If, on the basis of the audit described 
                        in subparagraph (A), the Commission determines 
                        that the amount anticipated to be available in 
                        the Fund with respect to an election cycle 
                        involved is not, or may not be, sufficient to 
                        make payments to States under this part in the 
                        full amount provided under this subsection, the 
                        Commission shall reduce each amount which would 
                        otherwise be paid to a State under this 
                        subsection by such pro rata amount as may be 
                        necessary to ensure that the aggregate amount 
                        of payments anticipated to be made with respect 
                        to the cycle will not exceed the amount 
                        anticipated to be available for such payments 
                        in the Fund with respect to such cycle.
                            (ii) Restoration of reductions in case of 
                        availability of sufficient funds during 
                        election cycle.--If, after reducing the amounts 
                        paid to States with respect to an election 
                        cycle under clause (i), the Commission 
                        determines that there are sufficient amounts in 
                        the Fund to restore the amount by which such 
                        payments were reduced (or any portion thereof), 
                        to the extent that such amounts are available, 
                        the Commission may make a payment on a pro rata 
                        basis to each such State with respect to the 
                        cycle in the amount by which such State's 
                        payments were reduced under clause (i) (or any 
                        portion thereof, as the case may be).
                            (iii) No use of amounts from other 
                        sources.--In any case in which the Commission 
                        determines that there are insufficient moneys 
                        in the Fund to make payments to States under 
                        this part, moneys shall not be made available 
                        from any other source for the purpose of making 
                        such payments.
            (4) Cap on amount of payment.--The aggregate amount of 
        payments made to any State with respect to any program 
        operation period may not exceed $10,000,000. If the State 
        determines that the maximum payment amount under this paragraph 
        with respect to the program operation period involved is not, 
        or may not be, sufficient to cover the reasonable costs 
        incurred by the State in operating the program under this part 
        for such period, the State shall reduce the amount of the 
        voucher provided to each qualified individual by such pro rata 
        amount as may be necessary to ensure that the reasonable costs 
        incurred by the State in operating the program will not exceed 
        the amount paid to the State with respect to such period.

SEC. 102. VOUCHER PROGRAM DESCRIBED.

    (a) General Elements of Program.--
            (1) Elements described.--The elements of a voucher pilot 
        program operated by a State under this part are as follows:
                    (A) The State shall provide each qualified 
                individual upon the individual's request with a voucher 
                worth $25 to be known as a ``My Voice Voucher'' during 
                the election cycle which will be assigned a routing 
                number and which at the option of the individual will 
                be provided in either paper or electronic form.
                    (B) Using the routing number assigned to the My 
                Voice Voucher, the individual may submit the My Voice 
                Voucher in either electronic or paper form to qualified 
                candidates for election for the office of 
                Representative in, or Delegate or Resident Commissioner 
                to, the Congress and allocate such portion of the value 
                of the My Voice Voucher in increments of $5 as the 
                individual may select to any such candidate.
                    (C) If the candidate transmits the My Voice Voucher 
                to the Commission, the Commission shall pay the 
                candidate the portion of the value of the My Voice 
                Voucher that the individual allocated to the candidate, 
                which shall be considered a contribution by the 
                individual to the candidate for purposes of the Federal 
                Election Campaign Act of 1971.
            (2) Designation of qualified individuals.--For purposes of 
        paragraph (1)(A), a ``qualified individual'' with respect to a 
        State means an individual--
                    (A) who is a resident of the State;
                    (B) who will be of voting age as of the date of the 
                election for the candidate to whom the individual 
                submits a My Voice Voucher; and
                    (C) who is not prohibited under Federal law from 
                making contributions to candidates for election for 
                Federal office.
            (3) Treatment as contribution to candidate.--For purposes 
        of the Federal Election Campaign Act of 1971, the submission of 
        a My Voice Voucher to a candidate by an individual shall be 
        treated as a contribution to the candidate by the individual in 
        the amount of the portion of the value of the Voucher that the 
        individual allocated to the candidate.
    (b) Fraud Prevention Mechanism.--In addition to the elements 
described in subsection (a), a State operating a voucher pilot program 
under this part shall permit an individual to revoke a My Voice Voucher 
not later than 2 days after submitting the My Voice Voucher to a 
candidate.
    (c) Oversight Commission.--In addition to the elements described in 
subsection (a), a State operating a voucher pilot program under this 
part shall establish a commission or designate an existing entity to 
oversee and implement the program in the State, except that no such 
commission or entity may be comprised of elected officials.
    (d) Public Information Campaign.--In addition to the elements 
described in subsection (a), a State operating a voucher pilot program 
under this part shall carry out a public information campaign to 
disseminate awareness of the program among qualified individuals.

SEC. 103. REPORTS.

    (a) Preliminary Report.--Not later than 6 months after the first 
election cycle of the program operation period, a State which operates 
a voucher pilot program under this part shall submit a report to the 
Commission analyzing the operation and effectiveness of the program 
during the cycle and including such other information as the Commission 
may require.
    (b) Final Report.--Not later than 6 months after the end of the 
program operation period, the State shall submit a final report to the 
Commission analyzing the operation and effectiveness of the program and 
including such other information as the Commission may require.
    (c) Study and Report on Impact and Effectiveness of Voucher 
Programs.--
            (1) Study.--The Federal Election Commission shall conduct a 
        study on the efficacy of political voucher programs, including 
        the program under this part and other similar programs, in 
        expanding and diversifying the pool of individuals who 
        participate in the electoral process, including those who 
        participate as donors and those who participate as candidates.
            (2) Report.--Not later than 1 year after the date of the 
        enactment of this Act, the Commission shall publish and submit 
        to Congress a report on the study conducted under subsection 
        (a), and shall include in the report such recommendations as 
        the Commission considers appropriate which would enable 
        political voucher programs to be implemented on a national 
        scale.

SEC. 104. DEFINITIONS.

    (a) Election Cycle.--In this part, the term ``election cycle'' 
means the period beginning on the day after the date of the most recent 
regularly scheduled general election for Federal office and ending on 
the date of the next regularly scheduled general election for Federal 
office.
    (b) Definitions Relating to Periods.--In this part, the following 
definitions apply:
            (1) Program application period.--The term ``program 
        application period'' means the first election cycle which 
        begins after the date of the enactment of this Act.
            (2) Program preparation period.--The term ``program 
        preparation period'' means the first election cycle which 
        begins after the program application period.
            (3) Program operation period.--The term ``program operation 
        period'' means the first 2 election cycles which begin after 
        the program preparation period.

  TITLE II--SMALL DOLLAR FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS

SEC. 201. BENEFITS AND ELIGIBILITY REQUIREMENTS FOR CANDIDATES.

    The Federal Election Campaign Act of 1971 (52 U.S.C. 30101 et seq.) 
is amended by adding at the end the following:

 ``TITLE V--SMALL DOLLAR FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS

                         ``Subtitle A--Benefits

``SEC. 501. BENEFITS FOR PARTICIPATING CANDIDATES.

    ``(a) In General.--If a candidate for election to the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress is certified as a participating candidate under this title 
with respect to an election for such office, the candidate shall be 
entitled to payments as provided under this title.
    ``(b) Amount of Payment.--The amount of a payment made under this 
title shall be equal to 600 percent of the amount of qualified small 
dollar contributions received by the candidate since the most recent 
payment made to the candidate under this title during the election 
cycle, without regard to whether or not the candidate received any of 
the contributions before, during, or after the Small Dollar Democracy 
qualifying period applicable to the candidate under section 511(c).
    ``(c) Limit on Aggregate Amount of Payments.--The aggregate amount 
of payments made to a participating candidate with respect to an 
election cycle under this title may not exceed 50 percent of the 
average of the 20 greatest amounts of disbursements made by the 
authorized committees of any winning candidate for the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress during the most recent election cycle, rounded to the nearest 
$100,000.

``SEC. 502. PROCEDURES FOR MAKING PAYMENTS.

    ``(a) In General.--The Commission shall make a payment under 
section 501 to a candidate who is certified as a participating 
candidate upon receipt from the candidate of a request for a payment 
which includes--
            ``(1) a statement of the number and amount of qualified 
        small dollar contributions received by the candidate since the 
        most recent payment made to the candidate under this title 
        during the election cycle;
            ``(2) a statement of the amount of the payment the 
        candidate anticipates receiving with respect to the request;
            ``(3) a statement of the total amount of payments the 
        candidate has received under this title as of the date of the 
        statement; and
            ``(4) such other information and assurances as the 
        Commission may require.
    ``(b) Restrictions on Submission of Requests.--A candidate may not 
submit a request under subsection (a) unless each of the following 
applies:
            ``(1) The amount of the qualified small dollar 
        contributions in the statement referred to in subsection (a)(1) 
        is equal to or greater than $5,000, unless the request is 
        submitted during the 30-day period which ends on the date of a 
        general election.
            ``(2) The candidate did not receive a payment under this 
        title during the 7-day period which ends on the date the 
        candidate submits the request.
    ``(c) Time of Payment.--The Commission shall, in coordination with 
the Secretary of the Treasury, take such steps as may be necessary to 
ensure that the Secretary is able to make payments under this section 
from the Treasury not later than 2 business days after the receipt of a 
request submitted under subsection (a).

``SEC. 503. USE OF FUNDS.

    ``(a) Use of Funds for Authorized Campaign Expenditures.--A 
candidate shall use payments made under this title, including payments 
provided with respect to a previous election cycle which are withheld 
from remittance to the Commission in accordance with section 524(a)(2), 
only for making direct payments for the receipt of goods and services 
which constitute authorized expenditures (as determined in accordance 
with title III) in connection with the election cycle involved.
    ``(b) Prohibiting Use of Funds for Legal Expenses, Fines, or 
Penalties.--Notwithstanding title III, a candidate may not use payments 
made under this title for the payment of expenses incurred in 
connection with any action, claim, or other matter before the 
Commission or before any court, hearing officer, arbitrator, or other 
dispute resolution entity, or for the payment of any fine or civil 
monetary penalty.

``SEC. 504. QUALIFIED SMALL DOLLAR CONTRIBUTIONS DESCRIBED.

    ``(a) In General.--In this title, the term `qualified small dollar 
contribution' means, with respect to a candidate and the authorized 
committees of a candidate, a contribution that meets the following 
requirements:
            ``(1) The contribution is in an amount that is--
                    ``(A) not less than $1; and
                    ``(B) not more than $200.
            ``(2)(A) The contribution is made directly by an individual 
        to the candidate or an authorized committee of the candidate 
        and is not--
                    ``(i) forwarded from the individual making the 
                contribution to the candidate or committee by another 
                person; or
                    ``(ii) received by the candidate or committee with 
                the knowledge that the contribution was made at the 
                request, suggestion, or recommendation of another 
                person.
            ``(B) In this paragraph--
                    ``(i) the term `person' does not include an 
                individual (other than an individual described in 
                section 304(i)(7) of the Federal Election Campaign Act 
                of 1971), a political committee of a political party, 
                or any political committee which is not a separate 
                segregated fund described in section 316(b) of the 
                Federal Election Campaign Act of 1971 and which does 
                not make contributions or independent expenditures, 
                does not engage in lobbying activity under the Lobbying 
                Disclosure Act of 1995 (2 U.S.C. 1601 et seq.), and is 
                not established by, controlled by, or affiliated with a 
                registered lobbyist under such Act, an agent of a 
                registered lobbyist under such Act, or an organization 
                which retains or employs a registered lobbyist under 
                such Act; and
                    ``(ii) a contribution is not `made at the request, 
                suggestion, or recommendation of another person' solely 
                on the grounds that the contribution is made in 
                response to information provided to the individual 
                making the contribution by any person, so long as the 
                candidate or authorized committee does not know the 
                identity of the person who provided the information to 
                such individual.
            ``(3) The individual who makes the contribution does not 
        make contributions to the candidate or the authorized 
        committees of the candidate with respect to the election 
        involved in an aggregate amount that exceeds the amount 
        described in paragraph (1)(B), or any contribution to the 
        candidate or the authorized committees of the candidate with 
        respect to the election involved that otherwise is not a 
        qualified small dollar contribution.
    ``(b) Treatment of My Voice Vouchers.--Any payment received by a 
candidate and the authorized committees of a candidate which consists 
of a My Voice Voucher under the Government By the People Act of 2021 
shall be considered a qualified small dollar contribution for purposes 
of this title, so long as the individual making the payment meets the 
requirements of paragraphs (2) and (3) of subsection (a).
    ``(c) Restriction on Subsequent Contributions.--
            ``(1) Prohibiting donor from making subsequent nonqualified 
        contributions during election cycle.--
                    ``(A) In general.--An individual who makes a 
                qualified small dollar contribution to a candidate or 
                the authorized committees of a candidate with respect 
                to an election may not make any subsequent contribution 
                to such candidate or the authorized committees of such 
                candidate with respect to the election cycle which is 
                not a qualified small dollar contribution.
                    ``(B) Exception for contributions to candidates who 
                voluntarily withdraw from participation during 
                qualifying period.--Subparagraph (A) does not apply 
                with respect to a contribution made to a candidate who, 
                during the Small Dollar Democracy qualifying period 
                described in section 511(c), submits a statement to the 
                Commission under section 513(c) to voluntarily withdraw 
                from participating in the program under this title.
            ``(2) Treatment of subsequent nonqualified contributions.--
        If, notwithstanding the prohibition described in paragraph (1), 
        an individual who makes a qualified small dollar contribution 
        to a candidate or the authorized committees of a candidate with 
        respect to an election makes a subsequent contribution to such 
        candidate or the authorized committees of such candidate with 
        respect to the election which is prohibited under paragraph (1) 
        because it is not a qualified small dollar contribution, the 
        candidate may take one of the following actions:
                    ``(A) Not later than 2 weeks after receiving the 
                contribution, the candidate may return the subsequent 
                contribution to the individual. In the case of a 
                subsequent contribution which is not a qualified small 
                dollar contribution because the contribution fails to 
                meet the requirements of paragraph (3) of subsection 
                (a) (relating to the aggregate amount of contributions 
                made to the candidate or the authorized committees of 
                the candidate by the individual making the 
                contribution), the candidate may return an amount equal 
                to the difference between the amount of the subsequent 
                contribution and the amount described in paragraph 
                (1)(B) of subsection (a).
                    ``(B) The candidate may retain the subsequent 
                contribution, so long as not later than 2 weeks after 
                receiving the subsequent contribution, the candidate 
                remits to the Commission for deposit in the Freedom 
                From Influence Fund under section 541 an amount equal 
                to any payments received by the candidate under this 
                title which are attributable to the qualified small 
                dollar contribution made by the individual involved.
            ``(3) No effect on ability to make multiple 
        contributions.--Nothing in this section may be construed to 
        prohibit an individual from making multiple qualified small 
        dollar contributions to any candidate or any number of 
        candidates, so long as each contribution meets each of the 
        requirements of paragraphs (1), (2), and (3) of subsection (a).
    ``(d) Notification Requirements for Candidates.--
            ``(1) Notification.--Each authorized committee of a 
        candidate who seeks to be a participating candidate under this 
        title shall provide the following information in any materials 
        for the solicitation of contributions, including any internet 
        site through which individuals may make contributions to the 
        committee:
                    ``(A) A statement that if the candidate is 
                certified as a participating candidate under this 
                title, the candidate will receive matching payments in 
                an amount which is based on the total amount of 
                qualified small dollar contributions received.
                    ``(B) A statement that a contribution which meets 
                the requirements set forth in subsection (a) shall be 
                treated as a qualified small dollar contribution under 
                this title.
                    ``(C) A statement that if a contribution is treated 
                as qualified small dollar contribution under this 
                title, the individual who makes the contribution may 
                not make any contribution to the candidate or the 
                authorized committees of the candidate during the 
                election cycle which is not a qualified small dollar 
                contribution.
            ``(2) Alternative methods of meeting requirements.--An 
        authorized committee may meet the requirements of paragraph 
        (1)--
                    ``(A) by including the information described in 
                paragraph (1) in the receipt provided under section 
                512(b)(3) to a person making a qualified small dollar 
                contribution; or
                    ``(B) by modifying the information it provides to 
                persons making contributions which is otherwise 
                required under title III (including information it 
                provides through the internet).

              ``Subtitle B--Eligibility and Certification

``SEC. 511. ELIGIBILITY.

    ``(a) In General.--A candidate for the office of Representative in, 
or Delegate or Resident Commissioner to, the Congress is eligible to be 
certified as a participating candidate under this title with respect to 
an election if the candidate meets the following requirements:
            ``(1) The candidate files with the Commission a statement 
        of intent to seek certification as a participating candidate.
            ``(2) The candidate meets the qualifying requirements of 
        section 512.
            ``(3) The candidate files with the Commission a statement 
        certifying that the authorized committees of the candidate meet 
        the requirements of section 504(d).
            ``(4) Not later than the last day of the Small Dollar 
        Democracy qualifying period, the candidate files with the 
        Commission an affidavit signed by the candidate and the 
        treasurer of the candidate's principal campaign committee 
        declaring that the candidate--
                    ``(A) has complied and, if certified, will comply 
                with the contribution and expenditure requirements of 
                section 521;
                    ``(B) if certified, will run only as a 
                participating candidate for all elections for the 
                office that such candidate is seeking during that 
                election cycle; and
                    ``(C) has either qualified or will take steps to 
                qualify under State law to be on the ballot.
    ``(b) General Election.--Notwithstanding subsection (a), a 
candidate shall not be eligible to be certified as a participating 
candidate under this title for a general election or a general runoff 
election unless the candidate's party nominated the candidate to be 
placed on the ballot for the general election or the candidate is 
otherwise qualified to be on the ballot under State law.
    ``(c) Small Dollar Democracy Qualifying Period Defined.--The term 
`Small Dollar Democracy qualifying period' means, with respect to any 
candidate for an office, the 180-day period (during the election cycle 
for such office) which begins on the date on which the candidate files 
a statement of intent under section 511(a)(1), except that such period 
may not continue after the date that is 30 days before the date of the 
general election for the office.

``SEC. 512. QUALIFYING REQUIREMENTS.

    ``(a) Receipt of Qualified Small Dollar Contributions.--A candidate 
for the office of Representative in, or Delegate or Resident 
Commissioner to, the Congress meets the requirement of this section if, 
during the Small Dollar Democracy qualifying period described in 
section 511(c), each of the following occurs:
            ``(1) Not fewer than 1,000 individuals make a qualified 
        small dollar contribution to the candidate.
            ``(2) The candidate obtains a total dollar amount of 
        qualified small dollar contributions which is equal to or 
        greater than $50,000.
    ``(b) Requirements Relating to Receipt of Qualified Small Dollar 
Contribution.--Each qualified small dollar contribution--
            ``(1) may be made by means of a personal check, money 
        order, debit card, credit card, electronic payment account, or 
        any other method deemed appropriate by the Commission;
            ``(2) shall be accompanied by a signed statement (or, in 
        the case of a contribution made online or through other 
        electronic means, an electronic equivalent) containing the 
        contributor's name and address; and
            ``(3) shall be acknowledged by a receipt that is sent to 
        the contributor with a copy (in paper or electronic form) kept 
        by the candidate for the Commission.
    ``(c) Verification of Contributions.--The Commission shall 
establish procedures for the auditing and verification of the 
contributions received and expenditures made by participating 
candidates under this title, including procedures for random audits, to 
ensure that such contributions and expenditures meet the requirements 
of this title.

``SEC. 513. CERTIFICATION.

    ``(a) Deadline and Notification.--
            ``(1) In general.--Not later than 5 business days after a 
        candidate files an affidavit under section 511(a)(4), the 
        Commission shall--
                    ``(A) determine whether or not the candidate meets 
                the requirements for certification as a participating 
                candidate;
                    ``(B) if the Commission determines that the 
                candidate meets such requirements, certify the 
                candidate as a participating candidate; and
                    ``(C) notify the candidate of the Commission's 
                determination.
            ``(2) Deemed certification for all elections in election 
        cycle.--If the Commission certifies a candidate as a 
        participating candidate with respect to the first election of 
        the election cycle involved, the Commission shall be deemed to 
        have certified the candidate as a participating candidate with 
        respect to all subsequent elections of the election cycle.
    ``(b) Revocation of Certification.--
            ``(1) In general.--The Commission shall revoke a 
        certification under subsection (a) if--
                    ``(A) a candidate fails to qualify to appear on the 
                ballot at any time after the date of certification 
                (other than a candidate certified as a participating 
                candidate with respect to a primary election who fails 
                to qualify to appear on the ballot for a subsequent 
                election in that election cycle);
                    ``(B) a candidate ceases to be a candidate for the 
                office involved, as determined on the basis of an 
                official announcement by an authorized committee of the 
                candidate or on the basis of a reasonable determination 
                by the Commission; or
                    ``(C) a candidate otherwise fails to comply with 
                the requirements of this title, including any 
                regulatory requirements prescribed by the Commission.
            ``(2) Existence of criminal sanction.--The Commission shall 
        revoke a certification under subsection (a) if a penalty is 
        assessed against the candidate under section 309(d) with 
        respect to the election.
            ``(3) Effect of revocation.--If a candidate's certification 
        is revoked under this subsection--
                    ``(A) the candidate may not receive payments under 
                this title during the remainder of the election cycle 
                involved; and
                    ``(B) in the case of a candidate whose 
                certification is revoked pursuant to subparagraph (A) 
                or subparagraph (C) of paragraph (1)--
                            ``(i) the candidate shall repay to the 
                        Freedom From Influence Fund established under 
                        section 541 an amount equal to the payments 
                        received under this title with respect to the 
                        election cycle involved plus interest (at a 
                        rate determined by the Commission on the basis 
                        of an appropriate annual percentage rate for 
                        the month involved) on any such amount 
                        received; and
                            ``(ii) the candidate may not be certified 
                        as a participating candidate under this title 
                        with respect to the next election cycle.
            ``(4) Prohibiting participation in future elections for 
        candidates with multiple revocations.--If the Commission 
        revokes the certification of an individual as a participating 
        candidate under this title pursuant to subparagraph (A) or 
        subparagraph (C) of paragraph (1) a total of 3 times, the 
        individual may not be certified as a participating candidate 
        under this title with respect to any subsequent election.
    ``(c) Voluntary Withdrawal From Participating During Qualifying 
Period.--At any time during the Small Dollar Democracy qualifying 
period described in section 511(c), a candidate may withdraw from 
participation in the program under this title by submitting to the 
Commission a statement of withdrawal (without regard to whether or not 
the Commission has certified the candidate as a participating candidate 
under this title as of the time the candidate submits such statement), 
so long as the candidate has not submitted a request for payment under 
section 502.
    ``(d) Participating Candidate Defined.--In this title, a 
`participating candidate' means a candidate for the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress who is certified under this section as eligible to receive 
benefits under this title.

 ``Subtitle C--Requirements for Candidates Certified as Participating 
                               Candidates

``SEC. 521. CONTRIBUTION AND EXPENDITURE REQUIREMENTS.

    ``(a) Permitted Sources of Contributions and Expenditures.--Except 
as provided in subsection (c), a participating candidate with respect 
to an election shall, with respect to all elections occurring during 
the election cycle for the office involved, accept no contributions 
from any source and make no expenditures from any amounts, other than 
the following:
            ``(1) Qualified small dollar contributions.
            ``(2) Payments under this title.
            ``(3) Contributions from political committees established 
        and maintained by a national or State political party, subject 
        to the applicable limitations of section 315.
            ``(4) Subject to subsection (b), personal funds of the 
        candidate or of any immediate family member of the candidate 
        (other than funds received through qualified small dollar 
        contributions).
            ``(5) Contributions from individuals who are otherwise 
        permitted to make contributions under this Act, subject to the 
        applicable limitations of section 315, except that the 
        aggregate amount of contributions a participating candidate may 
        accept from any individual with respect to any election during 
        the election cycle may not exceed $1,000.
            ``(6) Contributions from multicandidate political 
        committees, subject to the applicable limitations of section 
        315.
    ``(b) Special Rules for Personal Funds.--
            ``(1) Limit on amount.--A candidate who is certified as a 
        participating candidate may use personal funds (including 
        personal funds of any immediate family member of the candidate) 
        so long as--
                    ``(A) the aggregate amount used with respect to the 
                election cycle (including any period of the cycle 
                occurring prior to the candidate's certification as a 
                participating candidate) does not exceed $50,000; and
                    ``(B) the funds are used only for making direct 
                payments for the receipt of goods and services which 
                constitute authorized expenditures in connection with 
                the election cycle involved.
            ``(2) Immediate family member defined.--In this subsection, 
        the term `immediate family member' means, with respect to a 
        candidate--
                    ``(A) the candidate's spouse;
                    ``(B) a child, stepchild, parent, grandparent, 
                brother, half-brother, sister, or half-sister of the 
                candidate or the candidate's spouse; and
                    ``(C) the spouse of any person described in 
                subparagraph (B).
    ``(c) Exceptions.--
            ``(1) Exception for contributions received prior to filing 
        of statement of intent.--A candidate who has accepted 
        contributions that are not described in subsection (a) is not 
        in violation of subsection (a), but only if all such 
        contributions are--
                    ``(A) returned to the contributor;
                    ``(B) submitted to the Commission for deposit in 
                the Freedom From Influence Fund established under 
                section 541; or
                    ``(C) spent in accordance with paragraph (2).
            ``(2) Exception for expenditures made prior to filing of 
        statement of intent.--If a candidate has made expenditures 
        prior to the date the candidate files a statement of intent 
        under section 511(a)(1) that the candidate is prohibited from 
        making under subsection (a) or subsection (b), the candidate is 
        not in violation of such subsection if the aggregate amount of 
        the prohibited expenditures is less than the amount referred to 
        in section 512(a)(2) (relating to the total dollar amount of 
        qualified small dollar contributions which the candidate is 
        required to obtain) which is applicable to the candidate.
            ``(3) Exception for campaign surpluses from a previous 
        election.--Notwithstanding paragraph (1), unexpended 
        contributions received by the candidate or an authorized 
        committee of the candidate with respect to a previous election 
        may be retained, but only if the candidate places the funds in 
        escrow and refrains from raising additional funds for or 
        spending funds from that account during the election cycle in 
        which a candidate is a participating candidate.
            ``(4) Exception for contributions received before the 
        effective date of this title.--Contributions received and 
        expenditures made by the candidate or an authorized committee 
        of the candidate prior to the effective date of this title 
        shall not constitute a violation of subsection (a) or (b). 
        Unexpended contributions shall be treated the same as campaign 
        surpluses under paragraph (3), and expenditures made shall 
        count against the limit in paragraph (2).
    ``(d) Special Rule for Coordinated Party Expenditures.--For 
purposes of this section, a payment made by a political party in 
coordination with a participating candidate shall not be treated as a 
contribution to or as an expenditure made by the participating 
candidate.
    ``(e) Prohibition on Joint Fundraising Committees.--
            ``(1) Prohibition.--An authorized committee of a candidate 
        who is certified as a participating candidate under this title 
        with respect to an election may not establish a joint 
        fundraising committee with a political committee other than 
        another authorized committee of the candidate.
            ``(2) Status of existing committees for prior elections.--
        If a candidate established a joint fundraising committee 
        described in paragraph (1) with respect to a prior election for 
        which the candidate was not certified as a participating 
        candidate under this title and the candidate does not terminate 
        the committee, the candidate shall not be considered to be in 
        violation of paragraph (1) so long as that joint fundraising 
        committee does not receive any contributions or make any 
        disbursements during the election cycle for which the candidate 
        is certified as a participating candidate under this title.
    ``(f) Prohibition on Leadership PACs.--
            ``(1) Prohibition.--A candidate who is certified as a 
        participating candidate under this title with respect to an 
        election may not associate with, establish, finance, maintain, 
        or control a leadership PAC.
            ``(2) Status of existing leadership pacs.--If a candidate 
        established, financed, maintained, or controlled a leadership 
        PAC prior to being certified as a participating candidate under 
        this title and the candidate does not terminate the leadership 
        PAC, the candidate shall not be considered to be in violation 
        of paragraph (1) so long as the leadership PAC does not receive 
        any contributions or make any disbursements during the election 
        cycle for which the candidate is certified as a participating 
        candidate under this title.
            ``(3) Leadership pac defined.--In this subsection, the term 
        `leadership PAC' has the meaning given such term in section 
        304(i)(8)(B).

``SEC. 522. ADMINISTRATION OF CAMPAIGN.

    ``(a) Separate Accounting for Various Permitted Contributions.--
Each authorized committee of a candidate certified as a participating 
candidate under this title--
            ``(1) shall provide for separate accounting of each type of 
        contribution described in section 521(a) which is received by 
        the committee; and
            ``(2) shall provide for separate accounting for the 
        payments received under this title.
    ``(b) Enhanced Disclosure of Information on Donors.--
            ``(1) Mandatory identification of individuals making 
        qualified small dollar contributions.--Each authorized 
        committee of a participating candidate under this title shall, 
        in accordance with section 304(b)(3)(A), include in the reports 
        the committee submits under section 304 the identification of 
        each person who makes a qualified small dollar contribution to 
        the committee.
            ``(2) Mandatory disclosure through internet.--Each 
        authorized committee of a participating candidate under this 
        title shall ensure that all information reported to the 
        Commission under this Act with respect to contributions and 
        expenditures of the committee is available to the public on the 
        internet (whether through a site established for purposes of 
        this subsection, a hyperlink on another public site of the 
        committee, or a hyperlink on a report filed electronically with 
        the Commission) in a searchable, sortable, and downloadable 
        manner.

``SEC. 523. PREVENTING UNNECESSARY SPENDING OF PUBLIC FUNDS.

    ``(a) Mandatory Spending of Available Private Funds.--An authorized 
committee of a candidate certified as a participating candidate under 
this title may not make any expenditure of any payments received under 
this title in any amount unless the committee has made an expenditure 
in an equivalent amount of funds received by the committee which are 
described in paragraphs (1), (3), (4), (5), and (6) of section 521(a).
    ``(b) Limitation.--Subsection (a) applies to an authorized 
committee only to the extent that the funds referred to in such 
subsection are available to the committee at the time the committee 
makes an expenditure of a payment received under this title.

``SEC. 524. REMITTING UNSPENT FUNDS AFTER ELECTION.

    ``(a) Remittance Required.--Not later than the date that is 180 
days after the last election for which a candidate certified as a 
participating candidate qualifies to be on the ballot during the 
election cycle involved, such participating candidate shall remit to 
the Commission for deposit in the Freedom From Influence Fund 
established under section 541 an amount equal to the balance of the 
payments received under this title by the authorized committees of the 
candidate which remain unexpended as of such date.
    ``(b) Permitting Candidates Participating in Next Election Cycle To 
Retain Portion of Unspent Funds.--Notwithstanding subsection (a), a 
participating candidate may withhold not more than $100,000 from the 
amount required to be remitted under subsection (a) if the candidate 
files a signed affidavit with the Commission that the candidate will 
seek certification as a participating candidate with respect to the 
next election cycle, except that the candidate may not use any portion 
of the amount withheld until the candidate is certified as a 
participating candidate with respect to that next election cycle. If 
the candidate fails to seek certification as a participating candidate 
prior to the last day of the Small Dollar Democracy qualifying period 
for the next election cycle (as described in section 511), or if the 
Commission notifies the candidate of the Commission's determination 
does not meet the requirements for certification as a participating 
candidate with respect to such cycle, the candidate shall immediately 
remit to the Commission the amount withheld.

                  ``Subtitle D--Enhanced Match Support

``SEC. 531. ENHANCED SUPPORT FOR GENERAL ELECTION.

    ``(a) Availability of Enhanced Support.--In addition to the 
payments made under subtitle A, the Commission shall make an additional 
payment to an eligible candidate under this subtitle.
    ``(b) Use of Funds.--A candidate shall use the additional payment 
under this subtitle only for authorized expenditures in connection with 
the election involved.

``SEC. 532. ELIGIBILITY.

    ``(a) In General.--A candidate is eligible to receive an additional 
payment under this subtitle if the candidate meets each of the 
following requirements:
            ``(1) The candidate is on the ballot for the general 
        election for the office the candidate seeks.
            ``(2) The candidate is certified as a participating 
        candidate under this title with respect to the election.
            ``(3) During the enhanced support qualifying period, the 
        candidate receives qualified small dollar contributions in a 
        total amount of not less than $50,000.
            ``(4) During the enhanced support qualifying period, the 
        candidate submits to the Commission a request for the payment 
        which includes--
                    ``(A) a statement of the number and amount of 
                qualified small dollar contributions received by the 
                candidate during the enhanced support qualifying 
                period;
                    ``(B) a statement of the amount of the payment the 
                candidate anticipates receiving with respect to the 
                request; and
                    ``(C) such other information and assurances as the 
                Commission may require.
            ``(5) After submitting a request for the additional payment 
        under paragraph (4), the candidate does not submit any other 
        application for an additional payment under this subtitle.
    ``(b) Enhanced Support Qualifying Period Described.--In this 
subtitle, the term `enhanced support qualifying period' means, with 
respect to a general election, the period which begins 60 days before 
the date of the election and ends 14 days before the date of the 
election.

``SEC. 533. AMOUNT.

    ``(a) In General.--Subject to subsection (b), the amount of the 
additional payment made to an eligible candidate under this subtitle 
shall be an amount equal to 50 percent of--
            ``(1) the amount of the payment made to the candidate under 
        section 501(b) with respect to the qualified small dollar 
        contributions which are received by the candidate during the 
        enhanced support qualifying period (as included in the request 
        submitted by the candidate under section 532(a)(4)); or
            ``(2) in the case of a candidate who is not eligible to 
        receive a payment under section 501(b) with respect to such 
        qualified small dollar contributions because the candidate has 
        reached the limit on the aggregate amount of payments under 
        subtitle A for the election cycle under section 501(c), the 
        amount of the payment which would have been made to the 
        candidate under section 501(b) with respect to such qualified 
        small dollar contributions if the candidate had not reached 
        such limit.
    ``(b) Limit.--The amount of the additional payment determined under 
subsection (a) with respect to a candidate may not exceed $500,000.
    ``(c) No Effect on Aggregate Limit.--The amount of the additional 
payment made to a candidate under this subtitle shall not be included 
in determining the aggregate amount of payments made to a participating 
candidate with respect to an election cycle under section 501(c).

``SEC. 534. WAIVER OF AUTHORITY TO RETAIN PORTION OF UNSPENT FUNDS 
              AFTER ELECTION.

    ``Notwithstanding section 524(a)(2), a candidate who receives an 
additional payment under this subtitle with respect to an election is 
not permitted to withhold any portion from the amount of unspent funds 
the candidate is required to remit to the Commission under section 
524(a)(1).

                ``Subtitle E--Administrative Provisions

``SEC. 541. FREEDOM FROM INFLUENCE FUND.

    ``(a) Establishment.--There is established in the Treasury a fund 
to be known as the `Freedom From Influence Fund'.
    ``(b) Amounts Held by Fund.--The Fund shall consist of the 
following amounts:
            ``(1) Assessments against fines, settlements, and 
        penalties.--Amounts transferred under section 3015 of title 18, 
        United States Code, section 9706 of title 31, United States 
        Code, and section 6761 of the Internal Revenue Code of 1986.
            ``(2) Deposits.--Amounts deposited into the Fund under--
                    ``(A) section 521(c)(1)(B) (relating to exceptions 
                to contribution requirements);
                    ``(B) section 523 (relating to remittance of unused 
                payments from the Fund); and
                    ``(C) section 544 (relating to violations).
    ``(c) Use of Fund To Make Payments to Participating Candidates.--
            ``(1) Payments to participating candidates.--Amounts in the 
        Fund shall be available without further appropriation or fiscal 
        year limitation to make payments to participating candidates as 
        provided in this title.
            ``(2) Mandatory reduction of payments in case of 
        insufficient amounts in fund.--
                    ``(A) Advance audits by commission.--Not later than 
                90 days before the first day of each election cycle 
                (beginning with the first election cycle that begins 
                after the date of the enactment of this title), the 
                Commission shall--
                            ``(i) audit the Fund to determine whether 
                        the amounts in the Fund will be sufficient to 
                        make payments to participating candidates in 
                        the amounts provided in this title during such 
                        election cycle; and
                            ``(ii) submit a report to Congress 
                        describing the results of the audit.
                    ``(B) Reductions in amount of payments.--
                            ``(i) Automatic reduction on pro rata 
                        basis.--If, on the basis of the audit described 
                        in subparagraph (A), the Commission determines 
                        that the amount anticipated to be available in 
                        the Fund with respect to the election cycle 
                        involved is not, or may not be, sufficient to 
                        satisfy the full entitlements of participating 
                        candidates to payments under this title for 
                        such election cycle, the Commission shall 
                        reduce each amount which would otherwise be 
                        paid to a participating candidate under this 
                        title by such pro rata amount as may be 
                        necessary to ensure that the aggregate amount 
                        of payments anticipated to be made with respect 
                        to the election cycle will not exceed the 
                        amount anticipated to be available for such 
                        payments in the Fund with respect to such 
                        election cycle.
                            ``(ii) Restoration of reductions in case of 
                        availability of sufficient funds during 
                        election cycle.--If, after reducing the amounts 
                        paid to participating candidates with respect 
                        to an election cycle under clause (i), the 
                        Commission determines that there are sufficient 
                        amounts in the Fund to restore the amount by 
                        which such payments were reduced (or any 
                        portion thereof), to the extent that such 
                        amounts are available, the Commission may make 
                        a payment on a pro rata basis to each such 
                        participating candidate with respect to the 
                        election cycle in the amount by which such 
                        candidate's payments were reduced under clause 
                        (i) (or any portion thereof, as the case may 
                        be).
                            ``(iii) No use of amounts from other 
                        sources.--In any case in which the Commission 
                        determines that there are insufficient moneys 
                        in the Fund to make payments to participating 
                        candidates under this title, moneys shall not 
                        be made available from any other source for the 
                        purpose of making such payments.
    ``(d) Use of Fund To Make Other Payments.--In addition to the use 
described in subsection (d), amounts in the Fund shall be available 
without further appropriation or fiscal year limitation--
            ``(1) to make payments to States under the My Voice Voucher 
        Program under the Government By the People Act of 2021, subject 
        to reductions under section 5101(f)(3) of such Act;
            ``(2) to make payments to candidates under chapter 95 of 
        subtitle H of the Internal Revenue Code of 1986, subject to 
        reductions under section 9013(b) of such Code; and
            ``(3) to make payments to candidates under chapter 96 of 
        subtitle H of the Internal Revenue Code of 1986, subject to 
        reductions under section 9043(b) of such Code.
    ``(e) No Taxpayer Funds Permitted.--No taxpayer funds may be 
deposited into the Fund.
    ``(f) Effective Date.--This section shall take effect on the date 
of the enactment of this title.

``SEC. 542. REVIEWS AND REPORTS BY GOVERNMENT ACCOUNTABILITY OFFICE.

    ``(a) Review of Small Dollar Financing.--
            ``(1) In general.--After each regularly scheduled general 
        election for Federal office, the Comptroller General of the 
        United States shall conduct a comprehensive review of the Small 
        Dollar financing program under this title, including--
                    ``(A) the maximum and minimum dollar amounts of 
                qualified small dollar contributions under section 504;
                    ``(B) the number and value of qualified small 
                dollar contributions a candidate is required to obtain 
                under section 512(a) to be eligible for certification 
                as a participating candidate;
                    ``(C) the maximum amount of payments a candidate 
                may receive under this title;
                    ``(D) the overall satisfaction of participating 
                candidates and the American public with the program;
                    ``(E) the extent to which the program increased 
                opportunities for participation by candidates of 
                diverse racial, gender, and socio-economic backgrounds; 
                and
                    ``(F) such other matters relating to financing of 
                campaigns as the Comptroller General determines are 
                appropriate.
            ``(2) Criteria for review.--In conducting the review under 
        subparagraph (A), the Comptroller General shall consider the 
        following:
                    ``(A) Qualified small dollar contributions.--
                Whether the number and dollar amounts of qualified 
                small dollar contributions required strikes an 
                appropriate balance regarding the importance of voter 
                involvement, the need to assure adequate incentives for 
                participating, and fiscal responsibility, taking into 
                consideration the number of primary and general 
                election participating candidates, the electoral 
                performance of those candidates, program cost, and any 
                other information the Comptroller General determines is 
                appropriate.
                    ``(B) Review of payment levels.--Whether the 
                totality of the amount of funds allowed to be raised by 
                participating candidates (including through qualified 
                small dollar contributions) and payments under this 
                title are sufficient for voters in each State to learn 
                about the candidates to cast an informed vote, taking 
                into account the historic amount of spending by winning 
                candidates, media costs, primary election dates, and 
                any other information the Comptroller General 
                determines is appropriate.
            ``(3) Recommendations for adjustment of amounts.--Based on 
        the review conducted under subparagraph (A), the Comptroller 
        General may recommend to Congress adjustments of the following 
        amounts:
                    ``(A) The number and value of qualified small 
                dollar contributions a candidate is required to obtain 
                under section 512(a) to be eligible for certification 
                as a participating candidate.
                    ``(B) The maximum amount of payments a candidate 
                may receive under this title.
    ``(b) Reports.--Not later than each June 1 which follows a 
regularly scheduled general election for Federal office for which 
payments were made under this title, the Comptroller General shall 
submit to the Committee on House Administration of the House of 
Representatives a report--
            ``(1) containing an analysis of the review conducted under 
        subsection (a), including a detailed statement of Comptroller 
        General's findings, conclusions, and recommendations based on 
        such review, including any recommendations for adjustments of 
        amounts described in subsection (a)(3); and
            ``(2) documenting, evaluating, and making recommendations 
        relating to the administrative implementation and enforcement 
        of the provisions of this title.
    ``(c) Authorization of Appropriations.--There are authorized to be 
appropriated such sums as are necessary to carry out the purposes of 
this section.

``SEC. 543. ADMINISTRATION BY COMMISSION.

    ``The Commission shall prescribe regulations to carry out the 
purposes of this title, including regulations to establish procedures 
for--
            ``(1) verifying the amount of qualified small dollar 
        contributions with respect to a candidate;
            ``(2) effectively and efficiently monitoring and enforcing 
        the limits on the raising of qualified small dollar 
        contributions;
            ``(3) effectively and efficiently monitoring and enforcing 
        the limits on the use of personal funds by participating 
        candidates; and
            ``(4) monitoring the use of allocations from the Freedom 
        From Influence Fund established under section 541 and matching 
        contributions under this title through audits of not fewer than 
        \1/10\ (or, in the case of the first 3 election cycles during 
        which the program under this title is in effect, not fewer than 
        \1/3\) of all participating candidates or other mechanisms.

``SEC. 544. VIOLATIONS AND PENALTIES.

    ``(a) Civil Penalty for Violation of Contribution and Expenditure 
Requirements.--If a candidate who has been certified as a participating 
candidate accepts a contribution or makes an expenditure that is 
prohibited under section 521, the Commission may assess a civil penalty 
against the candidate in an amount that is not more than 3 times the 
amount of the contribution or expenditure. Any amounts collected under 
this subsection shall be deposited into the Freedom From Influence Fund 
established under section 541.
    ``(b) Repayment for Improper Use of Freedom From Influence Fund.--
            ``(1) In general.--If the Commission determines that any 
        payment made to a participating candidate was not used as 
        provided for in this title or that a participating candidate 
        has violated any of the dates for remission of funds contained 
        in this title, the Commission shall so notify the candidate and 
        the candidate shall pay to the Fund an amount equal to--
                    ``(A) the amount of payments so used or not 
                remitted, as appropriate; and
                    ``(B) interest on any such amounts (at a rate 
                determined by the Commission).
            ``(2) Other action not precluded.--Any action by the 
        Commission in accordance with this subsection shall not 
        preclude enforcement proceedings by the Commission in 
        accordance with section 309(a), including a referral by the 
        Commission to the Attorney General in the case of an apparent 
        knowing and willful violation of this title.
    ``(c) Prohibiting Certain Candidates From Qualifying as 
Participating Candidates.--
            ``(1) Candidates with multiple civil penalties.--If the 
        Commission assesses 3 or more civil penalties under subsection 
        (a) against a candidate (with respect to either a single 
        election or multiple elections), the Commission may refuse to 
        certify the candidate as a participating candidate under this 
        title with respect to any subsequent election, except that if 
        each of the penalties were assessed as the result of a knowing 
        and willful violation of any provision of this Act, the 
        candidate is not eligible to be certified as a participating 
        candidate under this title with respect to any subsequent 
        election.
            ``(2) Candidates subject to criminal penalty.--A candidate 
        is not eligible to be certified as a participating candidate 
        under this title with respect to an election if a penalty has 
        been assessed against the candidate under section 309(d) with 
        respect to any previous election.
    ``(d) Imposition of Criminal Penalties.--For criminal penalties for 
the failure of a participating candidate to comply with the 
requirements of this title, see section 309(d).

``SEC. 545. APPEALS PROCESS.

    ``(a) Review of Actions.--Any action by the Commission in carrying 
out this title shall be subject to review by the United States Court of 
Appeals for the District of Columbia upon petition filed in the Court 
not later than 30 days after the Commission takes the action for which 
the review is sought.
    ``(b) Procedures.--The provisions of chapter 7 of title 5, United 
States Code, apply to judicial review under this section.

``SEC. 546. INDEXING OF AMOUNTS.

    ``(a) Indexing.--In any calendar year after 2026, section 
315(c)(1)(B) shall apply to each amount described in subsection (b) in 
the same manner as such section applies to the limitations established 
under subsections (a)(1)(A), (a)(1)(B), (a)(3), and (h) of such 
section, except that for purposes of applying such section to the 
amounts described in subsection (b), the `base period' shall be 2026.
    ``(b) Amounts Described.--The amounts described in this subsection 
are as follows:
            ``(1) The amount referred to in section 502(b)(1) (relating 
        to the minimum amount of qualified small dollar contributions 
        included in a request for payment).
            ``(2) The amounts referred to in section 504(a)(1) 
        (relating to the amount of a qualified small dollar 
        contribution).
            ``(3) The amount referred to in section 512(a)(2) (relating 
        to the total dollar amount of qualified small dollar 
        contributions).
            ``(4) The amount referred to in section 521(a)(5) (relating 
        to the aggregate amount of contributions a participating 
        candidate may accept from any individual with respect to an 
        election).
            ``(5) The amount referred to in section 521(b)(1)(A) 
        (relating to the amount of personal funds that may be used by a 
        candidate who is certified as a participating candidate).
            ``(6) The amounts referred to in section 524(a)(2) 
        (relating to the amount of unspent funds a candidate may retain 
        for use in the next election cycle).
            ``(7) The amount referred to in section 532(a)(3) (relating 
        to the total dollar amount of qualified small dollar 
        contributions for a candidate seeking an additional payment 
        under subtitle D).
            ``(8) The amount referred to in section 533(b) (relating to 
        the limit on the amount of an additional payment made to a 
        candidate under subtitle D).

``SEC. 547. ELECTION CYCLE DEFINED.

    ``In this title, the term `election cycle' means, with respect to 
an election for an office, the period beginning on the day after the 
date of the most recent general election for that office (or, if the 
general election resulted in a runoff election, the date of the runoff 
election) and ending on the date of the next general election for that 
office (or, if the general election resulted in a runoff election, the 
date of the runoff election).''.

SEC. 202. CONTRIBUTIONS AND EXPENDITURES BY MULTICANDIDATE AND 
              POLITICAL PARTY COMMITTEES ON BEHALF OF PARTICIPATING 
              CANDIDATES.

    (a) Authorizing Contributions Only From Separate Accounts 
Consisting of Qualified Small Dollar Contributions.--Section 315(a) of 
the Federal Election Campaign Act of 1971 (52 U.S.C. 30116(a)) is 
amended by adding at the end the following new paragraph:
    ``(10) In the case of a multicandidate political committee or any 
political committee of a political party, the committee may make a 
contribution to a candidate who is a participating candidate under 
title V with respect to an election only if the contribution is paid 
from a separate, segregated account of the committee which consists 
solely of contributions which meet the following requirements:
            ``(A) Each such contribution is in an amount which meets 
        the requirements for the amount of a qualified small dollar 
        contribution under section 504(a)(1) with respect to the 
        election involved.
            ``(B) Each such contribution is made by an individual who 
        is not otherwise prohibited from making a contribution under 
        this Act.
            ``(C) The individual who makes the contribution does not 
        make contributions to the committee during the year in an 
        aggregate amount that exceeds the limit described in section 
        504(a)(1).''.
    (b) Permitting Unlimited Coordinated Expenditures From Small Dollar 
Sources by Political Parties.--Section 315(d) of such Act (52 U.S.C. 
30116(d)) is amended--
            (1) in paragraph (3), by striking ``The national 
        committee'' and inserting ``Except as provided in paragraph 
        (6), the national committee''; and
            (2) by adding at the end the following new paragraph:
    ``(6) The limits described in paragraph (3) do not apply in the 
case of expenditures in connection with the general election campaign 
of a candidate for the office of Representative in, or Delegate or 
Resident Commissioner to, the Congress who is a participating candidate 
under title V with respect to the election, but only if--
            ``(A) the expenditures are paid from a separate, segregated 
        account of the committee which is described in subsection 
        (a)(10); and
            ``(B) the expenditures are the sole source of funding 
        provided by the committee to the candidate.''.

SEC. 203. PROHIBITING USE OF CONTRIBUTIONS BY PARTICIPATING CANDIDATES 
              FOR PURPOSES OTHER THAN CAMPAIGN FOR ELECTION.

    Section 313 of the Federal Election Campaign Act of 1971 (52 U.S.C. 
30114) is amended by adding at the end the following new subsection:
    ``(d) Restrictions on Permitted Uses of Funds by Candidates 
Receiving Small Dollar Financing.--Notwithstanding paragraph (2), (3), 
or (4) of subsection (a), if a candidate for election for the office of 
Representative in, or Delegate or Resident Commissioner to, the 
Congress is certified as a participating candidate under title V with 
respect to the election, any contribution which the candidate is 
permitted to accept under such title may be used only for authorized 
expenditures in connection with the candidate's campaign for such 
office, subject to section 503(b).''.

SEC. 204. ASSESSMENTS AGAINST FINES AND PENALTIES.

    (a) Assessments Relating to Criminal Offenses.--
            (1) In general.--Chapter 201 of title 18, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 3015. Special assessments for Freedom From Influence Fund
    ``(a) Assessments.--
            ``(1) Convictions of crimes.--In addition to any assessment 
        imposed under this chapter, the court shall assess on any 
        organizational defendant or any defendant who is a corporate 
        officer or person with equivalent authority in any other 
        organization who is convicted of a criminal offense under 
        Federal law an amount equal to 4.75 percent of any fine imposed 
        on that defendant in the sentence imposed for that conviction.
            ``(2) Settlements.--The court shall assess on any 
        organizational defendant or defendant who is a corporate 
        officer or person with equivalent authority in any other 
        organization who has entered into a settlement agreement or 
        consent decree with the United States in satisfaction of any 
        allegation that the defendant committed a criminal offense 
        under Federal law an amount equal to 4.75 percent of the amount 
        of the settlement.
    ``(b) Manner of Collection.--An amount assessed under subsection 
(a) shall be collected in the manner in which fines are collected in 
criminal cases.
    ``(c) Transfers.--In a manner consistent with section 3302(b) of 
title 31, there shall be transferred from the General Fund of the 
Treasury to the Freedom From Influence Fund under section 541 of the 
Federal Election Campaign Act of 1971 an amount equal to the amount of 
the assessments collected under this section.''.
            (2) Clerical amendment.--The table of sections of chapter 
        201 of title 18, United States Code, is amended by adding at 
        the end the following:

``3015. Special assessments for Freedom From Influence Fund.''.
    (b) Assessments Relating to Civil Penalties.--
            (1) In general.--Chapter 97 of title 31, United States 
        Code, is amended by adding at the end the following new 
        section:
``Sec. 9706. Special assessments for Freedom From Influence Fund
    ``(a) Assessments.--
            ``(1) Civil penalties.--Any entity of the Federal 
        Government which is authorized under any law, rule, or 
        regulation to impose a civil penalty shall assess on each 
        person, other than a natural person who is not a corporate 
        officer or person with equivalent authority in any other 
        organization, on whom such a penalty is imposed an amount equal 
        to 4.75 percent of the amount of the penalty.
            ``(2) Administrative penalties.--Any entity of the Federal 
        Government which is authorized under any law, rule, or 
        regulation to impose an administrative penalty shall assess on 
        each person, other than a natural person who is not a corporate 
        officer or person with equivalent authority in any other 
        organization, on whom such a penalty is imposed an amount equal 
        to 4.75 percent of the amount of the penalty.
            ``(3) Settlements.--Any entity of the Federal Government 
        which is authorized under any law, rule, or regulation to enter 
        into a settlement agreement or consent decree with any person, 
        other than a natural person who is not a corporate officer or 
        person with equivalent authority in any other organization, in 
        satisfaction of any allegation of an action or omission by the 
        person which would be subject to a civil penalty or 
        administrative penalty shall assess on such person an amount 
        equal to 4.75 percent of the amount of the settlement.
    ``(b) Manner of Collection.--An amount assessed under subsection 
(a) shall be collected--
            ``(1) in the case of an amount assessed under paragraph (1) 
        of such subsection, in the manner in which civil penalties are 
        collected by the entity of the Federal Government involved;
            ``(2) in the case of an amount assessed under paragraph (2) 
        of such subsection, in the manner in which administrative 
        penalties are collected by the entity of the Federal Government 
        involved; and
            ``(3) in the case of an amount assessed under paragraph (3) 
        of such subsection, in the manner in which amounts are 
        collected pursuant to settlement agreements or consent decrees 
        entered into by the entity of the Federal Government involved.
    ``(c) Transfers.--In a manner consistent with section 3302(b) of 
this title, there shall be transferred from the General Fund of the 
Treasury to the Freedom From Influence Fund under section 541 of the 
Federal Election Campaign Act of 1971 an amount equal to the amount of 
the assessments collected under this section.
    ``(d) Exception for Penalties and Settlements Under Authority of 
the Internal Revenue Code of 1986.--
            ``(1) In general.--No assessment shall be made under 
        subsection (a) with respect to any civil or administrative 
        penalty imposed, or any settlement agreement or consent decree 
        entered into, under the authority of the Internal Revenue Code 
        of 1986.
            ``(2) Cross reference.--For application of special 
        assessments for the Freedom From Influence Fund with respect to 
        certain penalties under the Internal Revenue Code of 1986, see 
        section 6761 of the Internal Revenue Code of 1986.''.
            (2) Clerical amendment.--The table of sections of chapter 
        97 of title 31, United States Code, is amended by adding at the 
        end the following:

``9706. Special assessments for Freedom From Influence Fund.''.
    (c) Assessments Relating to Certain Penalties Under the Internal 
Revenue Code of 1986.--
            (1) In general.--Chapter 68 of the Internal Revenue Code of 
        1986 is amended by adding at the end the following new 
        subchapter:

  ``Subchapter D--Special Assessments for Freedom From Influence Fund

``SEC. 6761. SPECIAL ASSESSMENTS FOR FREEDOM FROM INFLUENCE FUND.

    ``(a) In General.--Each person required to pay a covered penalty 
shall pay an additional amount equal to 4.75 percent of the amount of 
such penalty.
    ``(b) Covered Penalty.--For purposes of this section, the term 
`covered penalty' means any addition to tax, additional amount, 
penalty, or other liability provided under subchapter A or B.
    ``(c) Exception for Certain Individuals.--
            ``(1) In general.--In the case of a taxpayer who is an 
        individual, subsection (a) shall not apply to any covered 
        penalty if such taxpayer is an exempt taxpayer for the taxable 
        year for which such covered penalty is assessed.
            ``(2) Exempt taxpayer.--For purposes of this subsection, a 
        taxpayer is an exempt taxpayer for any taxable year if the 
        taxable income of such taxpayer for such taxable year does not 
        exceed the dollar amount at which begins the highest rate 
        bracket in effect under section 1 with respect to such taxpayer 
        for such taxable year.
    ``(d) Application of Certain Rules.--Except as provided in 
subsection (e), the additional amount determined under subsection (a) 
shall be treated for purposes of this title in the same manner as the 
covered penalty to which such additional amount relates.
    ``(e) Transfer to Freedom From Influence Fund.--The Secretary shall 
deposit any additional amount under subsection (a) in the General Fund 
of the Treasury and shall transfer from such General Fund to the 
Freedom From Influence Fund established under section 541 of the 
Federal Election Campaign Act of 1971 an amount equal to the amounts so 
deposited (and, notwithstanding subsection (d), such additional amount 
shall not be the basis for any deposit, transfer, credit, 
appropriation, or any other payment, to any other trust fund or 
account). Rules similar to the rules of section 9601 shall apply for 
purposes of this subsection.''.
            (2) Clerical amendment.--The table of subchapters for 
        chapter 68 of such Code is amended by adding at the end the 
        following new item:

 ``subchapter d--special assessments for freedom from influence fund''.

    (d) Effective Dates.--
            (1) In general.--Except as provided in paragraph (2), the 
        amendments made by this section shall apply with respect to 
        convictions, agreements, and penalties which occur on or after 
        the date of the enactment of this Act.
            (2) Assessments relating to certain penalties under the 
        internal revenue code of 1986.--The amendments made by 
        subsection (c) shall apply to covered penalties assessed after 
        the date of the enactment of this Act.

SEC. 205. STUDY AND REPORT ON SMALL DOLLAR FINANCING PROGRAM.

    (a) Study and Report.--Not later than 2 years after the completion 
of the first election cycle in which the program established under 
title V of the Federal Election Campaign Act of 1971, as added by 
section 201, is in effect, the Federal Election Commission shall--
            (1) assess--
                    (A) the amount of payment referred to in section 
                501 of such Act; and
                    (B) the amount of a qualified small dollar 
                contribution referred to in section 504(a)(1) of such 
                Act; and
            (2) submit to Congress a report that discusses whether such 
        amounts are sufficient to meet the goals of the program.
    (b) Update.--The Commission shall update and revise the study and 
report required by subsection (a) on a biennial basis.
    (c) Termination.--The requirements of this section shall terminate 
10 years after the date on which the first study and report required by 
subsection (a) is submitted to Congress.

SEC. 206. EFFECTIVE DATE.

    (a) In General.--Except as may otherwise be provided in this title 
and in the amendments made by this title, this title and the amendments 
made by this title shall apply with respect to elections occurring 
during 2030 or any succeeding year, without regard to whether or not 
the Federal Election Commission has promulgated the final regulations 
necessary to carry out this title and the amendments made by this title 
by the deadline set forth in subsection (b).
    (b) Deadline for Regulations.--Not later than June 30, 2028, the 
Federal Election Commission shall promulgate such regulations as may be 
necessary to carry out this title and the amendments made by this 
title.
                                 <all>
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