The U.S. Chamber Institute for Legal Reform announced that the House Judiciary Committee’s approval of the Protecting Our Courts from Foreign Manipulation Act of 2025 advances legislation designed to protect U.S. courts from foreign interference and external financiers.
According to the press release, the act progressed when the House Judiciary Committee voted to report H.R. 2675 to the full House. This followed efforts by Republican Chairman Jim Jordan and Representative Ben Cline to enhance oversight of foreign-backed litigation funding. The proposed bill mandates disclosure of foreign-sourced money in U.S. lawsuits, requires transparency for courts, parties, and the Department of Justice, and prohibits foreign governments and sovereign wealth funds from investing in U.S. cases. The framework is described by ILR and business groups as crucial for safeguarding national and economic security.
Concern over foreign and opaque third-party litigation funding arises partly due to its rapid growth and involvement in sensitive disputes. An analysis cited in national-security commentary highlights that in 2023, at least 39 active third-party funders made 353 new investments, managing approximately $15.2 billion in assets, with nearly one-fifth directed towards patent litigation—a field closely related to intellectual property and trade secrets. The ILR and allied Republicans argue that such large pools of capital backed by foreign actors necessitate disclosure and bans on foreign states as a prudent safeguard rather than an overreach.
Estimates of the broader litigation funding market reveal what supporters describe as systemic exposure. Recent market research estimates place the global litigation funding investment industry between $17–20 billion for 2024–2025, with projections suggesting it could more than double to about $53 billion to $67 billion by the mid-2030s, indicating double-digit annual growth. Concurrently, ILR’s tort-cost studies indicate total U.S. tort costs reached roughly $529 billion in 2022—around 2% of GDP—raising concerns among business-oriented policymakers that foreign-funded lawsuits could exacerbate costs for employers, consumers, and overall competitiveness.
The U.S. Chamber Institute for Legal Reform is a Washington D.C.-based advocacy group founded by the U.S. Chamber of Commerce in 1998 to promote civil justice reforms supported by the business community. It states its mission is to advocate for a fair legal system that fosters economic growth while curbing lawsuit abuse and excessive liability through work with Congress, state legislatures, federal agencies, and courts to make the system “simpler, fairer and faster.” Recent priorities include promoting transparency in third-party litigation funding, limiting foreign-backed lawsuits, and reducing “nuclear verdicts,” positioning ILR as a prominent right-of-center voice on litigation policy.
