Protecting Our Courts from Foreign Manipulation Act of 2025

If this passes: (1) all parties in federal civil cases must implement new disclosure protocols and certifications, increasing litigation costs and administrative burden, particularly for international law firms and cross-border disputes; (2) any current or future litigation funding agreement involving foreign state or sovereign wealth fund money becomes unenforceable, creating legal uncertainty for existing funders and funders seeking to exit agreements; (3) the DOJ and National Security Division gain extensive reporting on foreign funding of U.S. litigation, potentially informing enforcement actions or diplomatic pressure on foreign entities; (4) parties may face Federal Rules of Civil Procedure sanctions (attorney fee awards, case dismissal, adverse inference rulings) for incomplete or false certifications; (5) the bill applies retroactively to pending cases, potentially reopening settled or ongoing cases if hidden foreign state funding is later discovered. Analogous state-level restrictions on litigation funding (e.g., various states' regulation of non-party litigation funding and disclosures) have not produced measurable reductions in foreign state litigation activity, as such activity remains difficult to quantify. The bill assumes a problem (foreign state capture of U.S. litigation via secret financing) that lacks documented prevalence in case law or government reports, but creates mandatory compliance architecture for all federal civil litigation regardless.