Rep. Ritchie Torres Introduces the Campaign Funds Integrity Act of 2026

Resources / In the News Share on Rep. Ritchie Torres Introduces the Campaign Funds Integrity Act of 2026 May 19, 2026 In the News Legislation Would Ban Use of Campaign Funds in Prediction Markets WASHINGTON, D.C. – Today, Congressman Ritchie Torres (NY-15) introduced the Campaign Funds Integrity Act of 2026 , legislation that would prohibit candidates, authorized committees, and other political committees from using campaign funds to participate in prediction markets or event contracts, including any financial instrument whose value is derived from the outcome of an election, legislative action, regulatory decision, or other political or economic event. The bill would amend Section 324 of the Federal Election Campaign Act of 1971 to close a loophole that currently allows campaign money to be wagered on political outcomes, creating clear conflicts of interest between a candidate’s financial interests and their duty to serve the public. “Campaign contributions are intended to support a candidate’s campaign expenses, not for a candidate and their team to bet on their own win or loss,” said Rep. Torres . “Imagine if a candidate was to have internal polling data showing they are on the ascendancy in contrast to the current public information and then use thousands of dollars of donations they’ve received to skew the market in their favor and get rich quick off the democratic process. This is fundamentally wrong and Congress must make it clear that it is off limits.” The legislation comes as part of Rep. Torres’s sustained effort to bring accountability to the rapidly growing prediction market industry. Earlier this year, Rep. Torres introduced the Public Integrity in Financial Prediction Markets Act of 2026 , backed by more than 30 House Democrats including former Speaker Nancy Pelosi, to prohibit government officials and political appointees from trading on prediction markets when they possess material nonpublic information. That bill was prompted by a suspicious $400,000 payout on a newly created, anonymous Polymarket account that wagered on Venezuelan President Nicolas Maduro’s removal from office just hours before U.S. forces captured him. Under the Campaign Funds Integrity Act, violations would be subject to civil penalties enforced by the Federal Election Commission. Knowing and willful violations could result in criminal penalties including fines, imprisonment of up to five years, or both. The FEC would also be authorized to refer egregious cases to the U.S. Department of Justice for criminal prosecution. The bill explicitly preserves the ability of campaigns to hold funds in insured bank accounts, invest in diversified mutual funds or exchange-traded funds, and use other low-risk financial instruments as permitted by the FEC. The Commission would be directed to issue regulations and guidance on permissible instruments and compliance requirements. In an era of rapidly expanding prediction markets and growing concerns about corruption, insider trading, and market manipulation, Congress has a responsibility to establish clear ethical guardrails that protect public trust in our democratic institutions. This legislation ensures that campaign contributions are used to support voter engagement and legitimate campaign activity, rather than speculative political wagering for personal financial gain. By prohibiting the use of campaign funds to bet on political outcomes, this legislation represents a commonsense step toward preserving the integrity, transparency, and credibility of the American democratic process. ### Share on