Shareholder Political Transparency Act of 2025
The Shareholder Political Transparency Act of 2025 would amend the Securities Exchange Act of 1934 to require publicly traded issuers to disclose political spending. The bill defines a broad set of "expenditures for political activities" (including independent expenditures, electioneering communications, and certain payments to trade associations that could be used for political purposes) and would require issuers to report these expenditures on a quarterly basis and in annual reports, with detailed disclosures such as dates, amounts, recipients, and the political office or party involved. The bill also requires public accessibility of these disclosures on the SEC’s website and through the EDGAR system, and it calls for annual oversight and reporting to Congress by the SEC and the Government Accountability Office (GAO). Notably, certain activities (like direct lobbying by the issuer’s registered lobbyists, internal shareholder communications, and administration of a separate political fund) are excluded from the reporting requirements. The act targets issuers (publicly traded companies) but excludes investment companies like mutual funds.
Key Points
- 1New reporting regime for political expenditures: Quarterly reports within 180 days of enactment detailing each political expenditure, including date, amount, recipient, the candidate/office, and party affiliation; plus disclosure of related trade association payments.
- 2Annual reporting requirements: Annual shareholder reports must summarize expenditures over $10,000, describe future political spending plans (when known), and disclose total anticipated expenditures for the coming year.
- 3Public disclosure: Quarterly and annual reports must be publicly accessible on the SEC’s website and via the EDGAR system, in searchable, sortable, and downloadable formats.
- 4Definitions and scope: Expenditure for political activities includes independent expenditures, electioneering communications, and certain trade association dues/payments that could be used for political purposes; excludes direct lobbying by the issuer’s registered lobbyists, internal communications to shareholders and executives, and administration of a separate political fund.
- 5Oversight and accountability: The SEC must annually assess issuers’ compliance and report to Congress; the GAO will periodically evaluate the effectiveness of SEC oversight.