Shell Company Abuse Act | ChamberLight

IN COMMITTEE· 119TH CONGRESS

House BillHR 2816Criminal procedure and sentencingBusiness ethics

Shell Company Abuse Act

INTRO APR 10· LAST ACTION APR 10

READING

2MIN

COSPONSORS

5BIPARTISAN

READER REACTIONS0 TOTAL

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LEGISLATIVE PROGRESS

STEP 2 / 8

Introduced

In Committee

Reported

Passed House

Passed Senate

Conference

To President

Became Law

WHAT THE BILL DOES

AI-written

Voters should care about this bill because it aims to protect the integrity of U.S. elections from foreign interference. Currently, federal law prohibits foreign nationals from contributing to U.S. elections, but it can be challenging to track funds hidden through complex corporate structures. This bill specifically targets the use of "shell companies"—businesses that often exist only on paper—to mask the true source of these illegal contributions.

If this bill becomes law, it would create a new tool for prosecutors to pursue individuals who deliberately facilitate illegal foreign influence in elections by setting up these front companies. If it doesn't pass, it could remain easier for foreign entities to funnel money into U.S. politics undetected, potentially swaying outcomes and undermining public trust in the democratic process.

KEY PROVISIONS

3AI-extracted

PROVISION 01

Makes it unlawful for an owner, officer, attorney, or incorporation agent to establish or use a corporation or entity with the intent to conceal prohibited election contributions from foreign nationals.

This provision directly criminalizes the act of using shell companies to hide illegal foreign election money, closing a potential loophole.

PROVISION 02

Establishes a penalty of imprisonment for up to 5 years, a fine, or both, for anyone who violates this prohibition.

This creates a significant deterrent for individuals considering using companies to conceal illegal foreign election contributions.

PROVISION 03

Amends Title 18 of the U.S. Code (Crimes and Criminal Procedure) to include this new offense, specifically within the chapter related to elections and political activities.

This formally integrates the prohibition into federal criminal law, giving it legal standing and enforcement power.

SPONSORSHIP

1 + 5

COSPONSOR BREAKDOWNBIPARTISAN · 80%

DEM 3 REP 2 IND 0

ACTION TIMELINE

2 EVENTS

APR 10

Introduced in House

INTROREFERRAL

APR 10

Referred to the House Committee on the Judiciary.

HOUSE · INTROREFERRAL

BILL INFO

TypeHouse Bill

NumberHR 2816

Congress119th

StatusIn Committee

IntroducedApr 10, 2025

Last actionApr 10, 2025

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IN COMMITTEE· 119TH CONGRESS · JUDICIARY COMMITTEE · INTRODUCED APR 10, 2025

House BillHR 2816Criminal procedure and sentencingBusiness ethics

Shell Company Abuse Act

INTRODUCED APR 10, 2025· LAST ACTION APR 10, 2025

PASSAGE CHANCES

—%

READING

2 min

COSPONSORS

COMPLEXITY

Moderate

Call my reps

LEGISLATIVE PROGRESS

STEP 2 OF 8

Introduced

In Committee

Reported

Passed House

Passed Senate

Conference

To President

Became Law

Introduced
In Committee
Reported
Passed House
Passed Senate
Conference
To President
Became Law

WHAT THE BILL DOES

AI-written

KEY PROVISIONS

AI-extracted

high

This provision directly criminalizes the act of using shell companies to hide illegal foreign election money, closing a potential loophole.

high

Establishes a penalty of imprisonment for up to 5 years, a fine, or both, for anyone who violates this prohibition.

This creates a significant deterrent for individuals considering using companies to conceal illegal foreign election contributions.

med

Amends Title 18 of the U.S. Code (Crimes and Criminal Procedure) to include this new offense, specifically within the chapter related to elections and political activities.

This formally integrates the prohibition into federal criminal law, giving it legal standing and enforcement power.

PENALTIES & ENFORCEMENT

AI-extracted

An AI model extracted this from the bill’s official record and can make mistakes. Check the official text ↗ (opens in new tab)

TYPE	AMOUNT	WHO
criminal	imprisonment for not more than 5 years, fined under this title, or both	An owner, officer, attorney, or incorporation agent of a corporation, company, or other entity

GLOSSARY

AI-written

Shell Company: A company that exists only on paper and typically has no physical presence or employees, often used to hide the identity of its true owner or the source of funds.
Foreign National: A person who is not a U.S. citizen, lawful permanent resident (green card holder), or otherwise authorized to reside in the U.S. permanently. Under federal law, foreign nationals are generally prohibited from contributing to U.S. elections.
Election Contributions and Donations: Money, services, or anything of value given to political candidates, parties, or groups involved in influencing elections.
Title 18, United States Code: The section of federal law that deals with crimes and criminal procedure in the United States.
Incorporation Agent: An individual or company that helps establish a corporation or other legal entity, often handling the necessary paperwork and legal filings.

ACTION TIMELINE

2 EVENTS

APR 10, 25

Introduced in House

INTROREFERRAL

APR 10, 25

Referred to the House Committee on the Judiciary.

INTROREFERRAL

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Shell Company Abuse Act

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WHAT THE BILL DOES

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Shell Company Abuse Act

LEGISLATIVE PROGRESS

WHAT THE BILL DOES

KEY PROVISIONS

PENALTIES & ENFORCEMENT

GLOSSARY

ACTION TIMELINE

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