I 118th CONGRESS 2d Session H. R. 8572 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.

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. I My Voice Voucher Pilot Program 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. 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. 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. 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. II Small Dollar Financing of Congressional Election Campaigns 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: V Small Dollar Financing of Congressional Election Campaigns A Benefits 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. 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). 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. 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). B Eligibility and Certification 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. 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. 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. C Requirements for Candidates Certified as Participating Candidates 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). 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. 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. 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. D Enhanced Match Support 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. 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. 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). 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). E Administrative Provisions 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. 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. 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. 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). 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. 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). 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). . 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. . 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). . 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: 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: 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: D Special assessments for Freedom From Influence Fund 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. 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. 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.