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H 946

LITIGATION FINANCING TRANSPARENCY – Adds to existing law to establish the Litigation Financing Transparency, National Security, and Consumer Protection Act.

68th Legislature, 2nd Regular Session (2026)

Idaho bill creates disclosure and regulatory framework for third-party litigation financing to enhance transparency, address national security risks, and protect consumers from potentially exploitative funding arrangements.

Introduced, read first time, referred to JRA for Printing
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WeVote Research Nonpartisan
Bill Summary · H 946

Legislative bill overview

H 946 establishes the Litigation Financing Transparency, National Security, and Consumer Protection Act in Idaho. The bill appears designed to create disclosure requirements and regulatory frameworks around third-party litigation financing—arrangements where external investors fund lawsuits in exchange for a percentage of settlements or judgments. The specific provisions are not detailed in the available information, but the title indicates it addresses transparency, national security concerns, and consumer protections in these financial arrangements.

Why is this important

Litigation financing has grown significantly and can affect access to justice, settlement negotiations, and the integrity of the legal system. Unregulated third-party funding can create conflicts of interest, inflate lawsuit values, and allow foreign entities to influence American litigation. Transparency requirements could protect consumers and reveal who benefits financially from cases, but overly strict regulations might limit funding options for plaintiffs with legitimate claims but limited resources.

Potential points of contention

  • Defining scope: What types of litigation financing arrangements trigger disclosure requirements, and whether non-traditional funders (insurers, contingency firms) are included
  • National security implications: How broadly "national security" concerns are defined and whether disclosure requirements might inadvertently restrict legitimate funding sources
  • Access to justice trade-off: Whether transparency requirements make litigation financing more expensive or less available to plaintiffs with meritorious but resource-intensive cases

Compiled from official sources — confirm details with the bill’s official record.

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