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[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[S. 428 Introduced in Senate (IS)]

<DOC>

117th CONGRESS
  1st Session
                                 S. 428

  To amend chapters 95 and 96 of the Internal Revenue Code of 1986 to 
    reform the system of public financing for Presidential election 
                   campaigns, and for other purposes.

_______________________________________________________________________

                   IN THE SENATE OF THE UNITED STATES

                           February 24, 2021

  Mr. Van Hollen (for himself and Mr. Lujan) introduced the following 
  bill; which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL

 
  To amend chapters 95 and 96 of the Internal Revenue Code of 1986 to 
    reform the system of public financing for Presidential election 
                   campaigns, 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 ``Empower Act of 
2021''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents.
                       TITLE I--PRIMARY ELECTIONS

Sec. 101. Increase in and modifications to matching payments.
Sec. 102. Eligibility requirements for matching payments.
Sec. 103. Repeal of expenditure limitations.
Sec. 104. Period of availability of matching payments.
Sec. 105. Examination and audits of matchable contributions.
Sec. 106. Modification to limitation on contributions for Presidential 
                            primary candidates.
Sec. 107. Use of Freedom From Influence Fund as source of payments.
                      TITLE II--GENERAL ELECTIONS

Sec. 201. Modification of eligibility requirements for public 
                            financing.
Sec. 202. Repeal of expenditure limitations and use of qualified 
                            campaign contributions.
Sec. 203. Matching payments and other modifications to payment amounts.
Sec. 204. Increase in limit on coordinated party expenditures.
Sec. 205. Establishment of uniform date for release of payments.
Sec. 206. Amounts in Presidential Election Campaign Fund.
Sec. 207. Use of general election payments for general election legal 
                            and accounting compliance.
Sec. 208. Use of Freedom From Influence Fund as source of payments.
                 TITLE III--FREEDOM FROM INFLUENCE FUND

Sec. 301. Freedom From Influence Fund.
Sec. 302. Assessments against fines and penalties.
                        TITLE IV--EFFECTIVE DATE

Sec. 401. Effective date.

                       TITLE I--PRIMARY ELECTIONS

SEC. 101. INCREASE IN AND MODIFICATIONS TO MATCHING PAYMENTS.

    (a) Increase and Modification.--
            (1) In general.--The first sentence of section 9034(a) of 
        the Internal Revenue Code of 1986 is amended--
                    (A) by striking ``an amount equal to the amount of 
                each contribution'' and inserting ``an amount equal to 
                600 percent of the amount of each matchable 
                contribution (disregarding any amount of contributions 
                from any person to the extent that the total of the 
                amounts contributed by such person for the election 
                exceeds $200)''; and
                    (B) by striking ``authorized committees'' and all 
                that follows through ``$250'' and inserting 
                ``authorized committees''.
            (2) Matchable contributions.--Section 9034 of such Code is 
        amended--
                    (A) by striking the last sentence of subsection 
                (a); and
                    (B) by adding at the end the following new 
                subsection:
    ``(c) Matchable Contribution Defined.--For purposes of this section 
and section 9033(b)--
            ``(1) Matchable contribution.--The term `matchable 
        contribution' means, with respect to the nomination for 
        election to the office of President of the United States, a 
        contribution by an individual to a candidate or an authorized 
        committee of a candidate with respect to which the candidate 
        has certified in writing that--
                    ``(A) the individual making such contribution has 
                not made aggregate contributions (including such 
                matchable contribution) to such candidate and the 
                authorized committees of such candidate in excess of 
                $1,000 for the election;
                    ``(B) such candidate and the authorized committees 
                of such candidate will not accept contributions from 
                such individual (including such matchable contribution) 
                aggregating more than the amount described in 
                subparagraph (A); and
                    ``(C) such contribution was a direct contribution.
            ``(2) Contribution.--For purposes of this subsection, the 
        term `contribution' means a gift of money made by a written 
        instrument which identifies the individual making the 
        contribution by full name and mailing address, but does not 
        include a subscription, loan, advance, or deposit of money, or 
        anything of value or anything described in subparagraph (B), 
        (C), or (D) of section 9032(4).
            ``(3) Direct contribution.--
                    ``(A) In general.--For purposes of this subsection, 
                the term `direct contribution' means, with respect to a 
                candidate, a contribution which 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) Other definitions.--In subparagraph (A)--
                            ``(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) Conforming amendments.--
                    (A) Section 9032(4) of such Code is amended by 
                striking ``section 9034(a)'' and inserting ``section 
                9034''.
                    (B) Section 9033(b)(3) of such Code is amended by 
                striking ``matching contributions'' and inserting 
                ``matchable contributions''.
    (b) Modification of Payment Limitation.--Section 9034(b) of such 
Code is amended--
            (1) by striking ``The total'' and inserting the following:
            ``(1) In general.--The total'';
            (2) by striking ``shall not exceed'' and all that follows 
        and inserting ``shall not exceed $250,000,000.''; and
            (3) by adding at the end the following new paragraph:
            ``(2) Inflation adjustment.--
                    ``(A) In general.--In the case of any applicable 
                period beginning after 2029, the dollar amount in 
                paragraph (1) shall be increased by an amount equal 
                to--
                            ``(i) such dollar amount, multiplied by
                            ``(ii) the cost-of-living adjustment 
                        determined under section 1(f)(3) for the 
                        calendar year following the year which such 
                        applicable period begins, determined by 
                        substituting `calendar year 2028' for `calendar 
                        year 1992' in subparagraph (B) thereof.
                    ``(B) Applicable period.--For purposes of this 
                paragraph, the term `applicable period' means the 4-
                year period beginning with the first day following the 
                date of the general election for the office of 
                President and ending on the date of the next such 
                general election.
                    ``(C) Rounding.--If any amount as adjusted under 
                subparagraph (1) is not a multiple of $10,000, such 
                amount shall be rounded to the nearest multiple of 
                $10,000.''.

SEC. 102. ELIGIBILITY REQUIREMENTS FOR MATCHING PAYMENTS.

    (a) Amount of Aggregate Contributions Per State; Disregarding of 
Amounts Contributed in Excess of $200.--Section 9033(b)(3) of the 
Internal Revenue Code of 1986 is amended--
            (1) by striking ``$5,000'' and inserting ``$25,000''; and
            (2) by striking ``20 States'' and inserting the following: 
        ``20 States (disregarding any amount of contributions from any 
        such resident to the extent that the total of the amounts 
        contributed by such resident for the election exceeds $200)''.
    (b) Contribution Limit.--
            (1) In general.--Paragraph (4) of section 9033(b) of such 
        Code is amended to read as follows:
            ``(4) the candidate and the authorized committees of the 
        candidate will not accept aggregate contributions from any 
        person with respect to the nomination for election to the 
        office of President of the United States in excess of $1,000 
        for the election.''.
            (2) Conforming amendments.--
                    (A) Section 9033(b) of such Code is amended by 
                adding at the end the following new flush sentence:
``For purposes of paragraph (4), the term `contribution' has the 
meaning given such term in section 301(8) of the Federal Election 
Campaign Act of 1971.''.
                    (B) Section 9032(4) of such Code, as amended by 
                section 101(a)(3)(A), is amended by striking ``section 
                9034'' and inserting ``section 9033(b) or 9034''.
    (c) Participation in System for Payments for General Election.--
Section 9033(b) of such Code is amended--
            (1) by striking ``and'' at the end of paragraph (3);
            (2) by striking the period at the end of paragraph (4) and 
        inserting ``, and''; and
            (3) by inserting after paragraph (4) the following new 
        paragraph:
            ``(5) if the candidate is nominated by a political party 
        for election to the office of President, the candidate will 
        apply for and accept payments with respect to the general 
        election for such office in accordance with chapter 95.''.
    (d) Prohibition on Joint Fundraising Committees.--Section 9033(b) 
of such Code, as amended by subsection (c), is amended--
            (1) by striking ``and'' at the end of paragraph (4);
            (2) by striking the period at the end of paragraph (5) and 
        inserting ``; and''; and
            (3) by inserting after paragraph (5) the following new 
        paragraph:
            ``(6) the candidate will not establish a joint fundraising 
        committee with a political committee other than another 
        authorized committee of the candidate, except that candidate 
        established a joint fundraising committee with respect to a 
        prior election for which the candidate was not eligible to 
        receive payments under section 9037 and the candidate does not 
        terminate the committee, the candidate shall not be considered 
        to be in violation of this paragraph 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 eligible to receive payments under such 
        section.''.

SEC. 103. REPEAL OF EXPENDITURE LIMITATIONS.

    (a) In General.--Subsection (a) of section 9035 of the Internal 
Revenue Code of 1986 is amended to read as follows:
    ``(a) Personal Expenditure Limitation.--No candidate shall 
knowingly make expenditures from his personal funds, or the personal 
funds of his immediate family, in connection with his campaign for 
nomination for election to the office of President in excess of, in the 
aggregate, $50,000.''.
    (b) Conforming Amendment.--Paragraph (1) of section 9033(b) of the 
Internal Revenue Code of 1986 is amended to read as follows:
            ``(1) the candidate will comply with the personal 
        expenditure limitation under section 9035,''.

SEC. 104. PERIOD OF AVAILABILITY OF MATCHING PAYMENTS.

    Section 9032(6) of the Internal Revenue Code of 1986 is amended by 
striking ``the beginning of the calendar year in which a general 
election for the office of President of the United States will be 
held'' and inserting ``the date that is 6 months prior to the date of 
the earliest State primary election''.

SEC. 105. EXAMINATION AND AUDITS OF MATCHABLE CONTRIBUTIONS.

    Section 9038(a) of the Internal Revenue Code of 1986 is amended by 
inserting ``and matchable contributions accepted by'' after ``qualified 
campaign expenses of''.

SEC. 106. MODIFICATION TO LIMITATION ON CONTRIBUTIONS FOR PRESIDENTIAL 
              PRIMARY CANDIDATES.

    Section 315(a)(6) of the Federal Election Campaign Act of 1971 (52 
U.S.C. 30116(a)(6)) is amended by striking ``calendar year'' and 
inserting ``four-year election cycle''.

SEC. 107. USE OF FREEDOM FROM INFLUENCE FUND AS SOURCE OF PAYMENTS.

    (a) In General.--Chapter 96 of subtitle H of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 9043. USE OF FREEDOM FROM INFLUENCE FUND AS SOURCE OF PAYMENTS.

    ``(a) In General.--Notwithstanding any other provision of this 
chapter, effective with respect to the Presidential election held in 
2028 and each succeeding Presidential election, all payments made to 
candidates under this chapter shall be made from the Freedom From 
Influence Fund established under title III of the Empower Act of 2021 
(hereafter in this section referred to as the `Fund').
    ``(b) Mandatory Reduction of Payments in Case of Insufficient 
Amounts in Fund.--
            ``(1) Advance audits by commission.--Not later than 90 days 
        before the first day of each Presidential election cycle 
        (beginning with the cycle for the election held in 2028), the 
        Commission shall--
                    ``(A) audit the Fund to determine whether the 
                amounts remaining in the Fund will be sufficient to 
                make payments to candidates under this chapter in the 
                amounts provided under this chapter during such 
                election cycle; and
                    ``(B) submit a report to Congress describing the 
                results of the audit.
            ``(2) Reductions in amount of payments.--
                    ``(A) Automatic reduction on pro rata basis.--If, 
                on the basis of the audit described in paragraph (1), 
                the Commission determines that the amount anticipated 
                to be available in the Fund with respect to the 
                Presidential election cycle involved is not, or may not 
                be, sufficient to satisfy the full entitlements of 
                candidates to payments under this chapter for such 
                cycle, the Commission shall reduce each amount which 
                would otherwise be paid to a candidate under this 
                chapter 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.
                    ``(B) Restoration of reductions in case of 
                availability of sufficient funds during election 
                cycle.--If, after reducing the amounts paid to 
                candidates with respect to an election cycle under 
                subparagraph (A), 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 candidate with respect to the 
                election cycle in the amount by which such candidate's 
                payments were reduced under subparagraph (A) (or any 
                portion thereof, as the case may be).
                    ``(C) 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 
                candidates under this chapter, moneys shall not be made 
                available from any other source for the purpose of 
                making such payments.
            ``(3) No effect on amounts transferred for pediatric 
        research initiative.--This section does not apply to the 
        transfer of funds under section 9008(i).
            ``(4) Presidential election cycle defined.--In this 
        section, the term `Presidential election cycle' means, with 
        respect to a Presidential election, the period beginning on the 
        day after the date of the previous Presidential general 
        election and ending on the date of the Presidential 
        election.''.
    (b) Clerical Amendment.--The table of sections for chapter 96 of 
subtitle H of such Code is amended by adding at the end the following 
new item:

``Sec. 9043. Use of Freedom From Influence Fund as source of 
                            payments.''.

                      TITLE II--GENERAL ELECTIONS

SEC. 201. MODIFICATION OF ELIGIBILITY REQUIREMENTS FOR PUBLIC 
              FINANCING.

    Subsection (a) of section 9003 of the Internal Revenue Code of 1986 
is amended to read as follows:
    ``(a) In General.--In order to be eligible to receive any payments 
under section 9006, the candidates of a political party in a 
Presidential election shall meet the following requirements:
            ``(1) Participation in primary payment system.--The 
        candidate for President received payments under chapter 96 for 
        the campaign for nomination for election to be President.
            ``(2) Agreements with commission.--The candidates, in 
        writing--
                    ``(A) agree to obtain and furnish to the Commission 
                such evidence as it may request of the qualified 
                campaign expenses of such candidates,
                    ``(B) agree to keep and furnish to the Commission 
                such records, books, and other information as it may 
                request, and
                    ``(C) agree to an audit and examination by the 
                Commission under section 9007 and to pay any amounts 
                required to be paid under such section.
            ``(3) Prohibition on joint fundraising committees.--
                    ``(A) Prohibition.--The candidates certifies in 
                writing that the candidates will not establish a joint 
                fundraising committee with a political committee other 
                than another authorized committee of the candidate.
                    ``(B) Status of existing committees for prior 
                elections.--If a candidate established a joint 
                fundraising committee described in subparagraph (A) 
                with respect to a prior election for which the 
                candidate was not eligible to receive payments under 
                section 9006 and the candidate does not terminate the 
                committee, the candidate shall not be considered to be 
                in violation of subparagraph (A) so long as that joint 
                fundraising committee does not receive any 
                contributions or make any disbursements with respect to 
                the election for which the candidate is eligible to 
                receive payments under section 9006.''.

SEC. 202. REPEAL OF EXPENDITURE LIMITATIONS AND USE OF QUALIFIED 
              CAMPAIGN CONTRIBUTIONS.

    (a) Use of Qualified Campaign Contributions Without Expenditure 
Limits; Application of Same Requirements for Major, Minor, and New 
Parties.--Section 9003 of the Internal Revenue Code of 1986 is amended 
by striking subsections (b) and (c) and inserting the following:
    ``(b) Use of Qualified Campaign Contributions To Defray Expenses.--
            ``(1) In general.--In order to be eligible to receive any 
        payments under section 9006, the candidates of a party in a 
        Presidential election shall certify to the Commission, under 
        penalty of perjury, that--
                    ``(A) such candidates and their authorized 
                committees have not and will not accept any 
                contributions to defray qualified campaign expenses 
                other than--
                            ``(i) qualified campaign contributions, and
                            ``(ii) contributions to the extent 
                        necessary to make up any deficiency payments 
                        received out of the fund on account of the 
                        application of section 9006(c), and
                    ``(B) such candidates and their authorized 
                committees have not and will not accept any 
                contribution to defray expenses which would be 
                qualified campaign expenses but for subparagraph (C) of 
                section 9002(11).
            ``(2) Timing of certification.--The candidate shall make 
        the certification required under this subsection at the same 
        time the candidate makes the certification required under 
        subsection (a)(3).''.
    (b) Definition of Qualified Campaign Contribution.--Section 9002 of 
such Code is amended by adding at the end the following new paragraph:
            ``(13) Qualified campaign contribution.--The term 
        `qualified campaign contribution' means, with respect to any 
        election for the office of President of the United States, a 
        contribution from an individual to a candidate or an authorized 
        committee of a candidate which--
                    ``(A) does not exceed $1,000 for the election; and
                    ``(B) with respect to which the candidate has 
                certified in writing that--
                            ``(i) the individual making such 
                        contribution has not made aggregate 
                        contributions (including such qualified 
                        contribution) to such candidate and the 
                        authorized committees of such candidate in 
                        excess of the amount described in subparagraph 
                        (A), and
                            ``(ii) such candidate and the authorized 
                        committees of such candidate will not accept 
                        contributions from such individual (including 
                        such qualified contribution) aggregating more 
                        than the amount described in subparagraph (A) 
                        with respect to such election.''.
    (c) Conforming Amendments.--
            (1) Repeal of expenditure limits.--
                    (A) In general.--Section 315 of the Federal 
                Election Campaign Act of 1971 (52 U.S.C. 30116) is 
                amended by striking subsection (b).
                    (B) Conforming amendments.--Section 315(c) of such 
                Act (52 U.S.C. 30116(c)) is amended--
                            (i) in paragraph (1)(B)(i), by striking ``, 
                        (b)''; and
                            (ii) in paragraph (2)(B)(i), by striking 
                        ``subsections (b) and (d)'' and inserting 
                        ``subsection (d)''.
            (2) Repeal of repayment requirement.--
                    (A) In general.--Section 9007(b) of the Internal 
                Revenue Code of 1986 is amended by striking paragraph 
                (2) and redesignating paragraphs (3), (4), and (5) as 
                paragraphs (2), (3), and (4), respectively.
                    (B) Conforming amendment.--Paragraph (2) of section 
                9007(b) of such Code, as redesignated by subparagraph 
                (A), is amended--
                            (i) by striking ``a major party'' and 
                        inserting ``a party'';
                            (ii) by striking ``contributions (other 
                        than'' and inserting ``contributions (other 
                        than qualified contributions''; and
                            (iii) by striking ``(other than qualified 
                        campaign expenses with respect to which payment 
                        is required under paragraph (2))''.
            (3) Criminal penalties.--
                    (A) Repeal of penalty for excess expenses.--Section 
                9012 of the Internal Revenue Code of 1986 is amended by 
                striking subsection (a).
                    (B) Penalty for acceptance of disallowed 
                contributions; application of same penalty for 
                candidates of major, minor, and new parties.--
                Subsection (b) of section 9012 of such Code is amended 
                to read as follows:
    ``(b) Contributions.--
            ``(1) Acceptance of disallowed contributions.--It shall be 
        unlawful for an eligible candidate of a party in a Presidential 
        election or any of his authorized committees knowingly and 
        willfully to accept--
                    ``(A) any contribution other than a qualified 
                campaign contribution to defray qualified campaign 
                expenses, except to the extent necessary to make up any 
                deficiency in payments received out of the fund on 
                account of the application of section 9006(c); or
                    ``(B) any contribution to defray expenses which 
                would be qualified campaign expenses but for 
                subparagraph (C) of section 9002(11).
            ``(2) Penalty.--Any person who violates paragraph (1) shall 
        be fined not more than $5,000, or imprisoned not more than one 
        year, or both. In the case of a violation by an authorized 
        committee, any officer or member of such committee who 
        knowingly and willfully consents to such violation shall be 
        fined not more than $5,000, or imprisoned not more than one 
        year, or both.''.

SEC. 203. MATCHING PAYMENTS AND OTHER MODIFICATIONS TO PAYMENT AMOUNTS.

    (a) In General.--
            (1) Amount of payments; application of same amount for 
        candidates of major, minor, and new parties.--Subsection (a) of 
        section 9004 of the Internal Revenue Code of 1986 is amended to 
        read as follows:
    ``(a) In General.--Subject to the provisions of this chapter, the 
eligible candidates of a party in a Presidential election shall be 
entitled to equal payment under section 9006 in an amount equal to 600 
percent of the amount of each matchable contribution received by such 
candidate or by the candidate's authorized committees (disregarding any 
amount of contributions from any person to the extent that the total of 
the amounts contributed by such person for the election exceeds $200), 
except that total amount to which a candidate is entitled under this 
paragraph shall not exceed $250,000,000.''.
            (2) Repeal of separate limitations for candidates of minor 
        and new parties; inflation adjustment.--Subsection (b) of 
        section 9004 of such Code is amended to read as follows:
    ``(b) Inflation Adjustment.--
            ``(1) In general.--In the case of any applicable period 
        beginning after 2029, the $250,000,000 dollar amount in 
        subsection (a) shall be increased by an amount equal to--
                    ``(A) such dollar amount; multiplied by
                    ``(B) the cost-of-living adjustment determined 
                under section 1(f)(3) for the calendar year following 
                the year which such applicable period begins, 
                determined by substituting `calendar year 2028' for 
                `calendar year 1992' in subparagraph (B) thereof.
            ``(2) Applicable period.--For purposes of this subsection, 
        the term `applicable period' means the 4-year period beginning 
        with the first day following the date of the general election 
        for the office of President and ending on the date of the next 
        such general election.
            ``(3) Rounding.--If any amount as adjusted under paragraph 
        (1) is not a multiple of $10,000, such amount shall be rounded 
        to the nearest multiple of $10,000.''.
            (3) Conforming amendment.--Section 9005(a) of such Code is 
        amended by adding at the end the following new sentence: ``The 
        Commission shall make such additional certifications as may be 
        necessary to receive payments under section 9004.''.
    (b) Matchable Contribution.--Section 9002 of such Code, as amended 
by section 202(b), is amended by adding at the end the following new 
paragraph:
            ``(14) Matchable contribution.--The term `matchable 
        contribution' means, with respect to the election to the office 
        of President of the United States, a contribution by an 
        individual to a candidate or an authorized committee of a 
        candidate with respect to which the candidate has certified in 
        writing that--
                    ``(A) the individual making such contribution has 
                not made aggregate contributions (including such 
                matchable contribution) to such candidate and the 
                authorized committees of such candidate in excess of 
                $1,000 for the election;
                    ``(B) such candidate and the authorized committees 
                of such candidate will not accept contributions from 
                such individual (including such matchable contribution) 
                aggregating more than the amount described in 
                subparagraph (A) with respect to such election; and
                    ``(C) such contribution was a direct contribution 
                (as defined in section 9034(c)(3)).''.

SEC. 204. INCREASE IN LIMIT ON COORDINATED PARTY EXPENDITURES.

    (a) In General.--Section 315(d)(2) of the Federal Election Campaign 
Act of 1971 (52 U.S.C. 30116(d)(2)) is amended to read as follows:
    ``(2)(A) The national committee of a political party may not make 
any expenditure in connection with the general election campaign of any 
candidate for President of the United States who is affiliated with 
such party which exceeds $100,000,000.
    ``(B) For purposes of this paragraph--
            ``(i) any expenditure made by or on behalf of a national 
        committee of a political party and in connection with a 
        Presidential election shall be considered to be made in 
        connection with the general election campaign of a candidate 
        for President of the United States who is affiliated with such 
        party; and
            ``(ii) any communication made by or on behalf of such party 
        shall be considered to be made in connection with the general 
        election campaign of a candidate for President of the United 
        States who is affiliated with such party if any portion of the 
        communication is in connection with such election.
    ``(C) Any expenditure under this paragraph shall be in addition to 
any expenditure by a national committee of a political party serving as 
the principal campaign committee of a candidate for the office of 
President of the United States.''.
    (b) Conforming Amendments Relating to Timing of Cost-of-Living 
Adjustment.--
            (1) In general.--Section 315(c)(1) of such Act (52 U.S.C. 
        30116(c)(1)) is amended--
                    (A) in subparagraph (B), by striking ``(d)'' and 
                inserting ``(d)(2)''; and
                    (B) by adding at the end the following new 
                subparagraph:
    ``(D) In any calendar year after 2028--
            ``(i) the dollar amount in subsection (d)(2) shall be 
        increased by the percent difference determined under 
        subparagraph (A);
            ``(ii) the amount so increased shall remain in effect for 
        the calendar year; and
            ``(iii) if the amount after adjustment under clause (i) is 
        not a multiple of $100, such amount shall be rounded to the 
        nearest multiple of $100.''.
            (2) Base year.--Section 315(c)(2)(B) of such Act (52 U.S.C. 
        30116(c)(2)(B)) is amended--
                    (A) in clause (i)--
                            (i) by striking ``(d)'' and inserting 
                        ``(d)(3)''; and
                            (ii) by striking ``and'' at the end;
                    (B) in clause (ii), by striking the period at the 
                end and inserting ``; and''; and
                    (C) by adding at the end the following new clause:
                    ``(iii) for purposes of subsection (d)(2), calendar 
                year 2027.''.

SEC. 205. ESTABLISHMENT OF UNIFORM DATE FOR RELEASE OF PAYMENTS.

    (a) Date for Payments.--
            (1) In general.--Section 9006(b) of the Internal Revenue 
        Code of 1986 is amended to read as follows:
    ``(b) Payments From the Fund.--If the Secretary of the Treasury 
receives a certification from the Commission under section 9005 for 
payment to the eligible candidates of a political party, the Secretary 
shall pay to such candidates out of the fund the amount certified by 
the Commission on the later of--
            ``(1) the last Friday occurring before the first Monday in 
        September; or
            ``(2) 24 hours after receiving the certifications for the 
        eligible candidates of all major political parties.
Amounts paid to any such candidates shall be under the control of such 
candidates.''.
            (2) Conforming amendment.--The first sentence of section 
        9006(c) of such Code is amended by striking ``the time of a 
        certification by the Commission under section 9005 for 
        payment'' and inserting ``the time of making a payment under 
        subsection (b)''.
    (b) Time for Certification.--Section 9005(a) of the Internal 
Revenue Code of 1986 is amended by striking ``10 days'' and inserting 
``24 hours''.

SEC. 206. AMOUNTS IN PRESIDENTIAL ELECTION CAMPAIGN FUND.

    Section 9006(c) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new sentence: ``In making a 
determination of whether there are insufficient moneys in the fund for 
purposes of the previous sentence, the Secretary shall take into 
account in determining the balance of the fund for a Presidential 
election year the Secretary's best estimate of the amount of moneys 
which will be deposited into the fund during the year, except that the 
amount of the estimate may not exceed the average of the annual amounts 
deposited in the fund during the previous 3 years.''.

SEC. 207. USE OF GENERAL ELECTION PAYMENTS FOR GENERAL ELECTION LEGAL 
              AND ACCOUNTING COMPLIANCE.

    Section 9002(11) of the Internal Revenue Code of 1986 is amended by 
adding at the end the following new sentence: ``For purposes of 
subparagraph (A), an expense incurred by a candidate or authorized 
committee for general election legal and accounting compliance purposes 
shall be considered to be an expense to further the election of such 
candidate.''.

SEC. 208. USE OF FREEDOM FROM INFLUENCE FUND AS SOURCE OF PAYMENTS.

    (a) In General.--Chapter 95 of subtitle H of the Internal Revenue 
Code of 1986 is amended by adding at the end the following new section:

``SEC. 9013. USE OF FREEDOM FROM INFLUENCE FUND AS SOURCE OF PAYMENTS.

    ``(a) In General.--Notwithstanding any other provision of this 
chapter, effective with respect to the Presidential election held in 
2028 and each succeeding Presidential election, all payments made under 
this chapter shall be made from the Freedom From Influence Fund 
established under title III of the Empower Act of 2021.
    ``(b) Mandatory Reduction of Payments in Case of Insufficient 
Amounts in Fund.--
            ``(1) Advance audits by commission.--Not later than 90 days 
        before the first day of each Presidential election cycle 
        (beginning with the cycle for the election held in 2028), the 
        Commission shall--
                    ``(A) audit the Fund to determine whether, after 
                first making payments to candidates under chapter 96, 
                the amounts remaining in the Fund will be sufficient to 
                make payments to candidates under this chapter in the 
                amounts provided under this chapter during such 
                election cycle; and
                    ``(B) submit a report to Congress describing the 
                results of the audit.
            ``(2) Reductions in amount of payments.--
                    ``(A) Automatic reduction on pro rata basis.--If, 
                on the basis of the audit described in paragraph (1), 
                the Commission determines that the amount anticipated 
                to be available in the Fund with respect to the 
                Presidential election cycle involved is not, or may not 
                be, sufficient to satisfy the full entitlements of 
                candidates to payments under this chapter for such 
                cycle, the Commission shall reduce each amount which 
                would otherwise be paid to a candidate under this 
                chapter 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.
                    ``(B) Restoration of reductions in case of 
                availability of sufficient funds during election 
                cycle.--If, after reducing the amounts paid to 
                candidates with respect to an election cycle under 
                subparagraph (A), 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 candidate with respect to the 
                election cycle in the amount by which such candidate's 
                payments were reduced under subparagraph (A) (or any 
                portion thereof, as the case may be).
                    ``(C) 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 
                candidates under this chapter, moneys shall not be made 
                available from any other source for the purpose of 
                making such payments.
            ``(3) No effect on amounts transferred for pediatric 
        research initiative.--This section does not apply to the 
        transfer of funds under section 9008(i).
            ``(4) Presidential election cycle defined.--In this 
        section, the term `Presidential election cycle' means, with 
        respect to a Presidential election, the period beginning on the 
        day after the date of the previous Presidential general 
        election and ending on the date of the Presidential 
        election.''.
    (b) Clerical Amendment.--The table of sections for chapter 95 of 
subtitle H of such Code is amended by adding at the end the following 
new item:

``Sec. 9013. Use of Freedom From Influence Fund as source of 
                            payments.''.

                 TITLE III--FREEDOM FROM INFLUENCE FUND

SEC. 301. 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 amounts 
transferred under section 3015 of title 18, United States Code (as 
added by section 302(a)), section 9706 of title 31, United States Code 
(as added by section 302(b)), and section 6761 of the Internal Revenue 
Code of 1986 (as added by section 302(c)).
    (c) Use of Fund To Make Payments to Candidates.--Amounts in the 
Fund shall be available without further appropriation or fiscal year 
limitation--
            (1) 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
            (2) 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.
    (d) Effective Date.--This section shall take effect on the date of 
the enactment of this title.

SEC. 302. 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 title III of the 
Empower Act of 2021 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 title III of the 
Empower Act of 2021 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 ths 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 title III of the 
Empower Act of 2021 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.

                        TITLE IV--EFFECTIVE DATE

SEC. 401. EFFECTIVE DATE.

    (a) In General.--Except as otherwise provided, this Act and the 
amendments made by this Act shall apply with respect to the 
Presidential election held in 2028 and each succeeding Presidential 
election, without regard to whether or not the Federal Election 
Commission has promulgated the final regulations necessary to carry out 
this Act and the amendments made by this Act by the deadline set forth 
in subsection (b).
    (b) Deadline for Regulations.--Not later than June 30, 2026, the 
Federal Election Commission shall promulgate such regulations as may be 
necessary to carry out this Act and the amendments made by this Act.
                                 <all>
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