This bill requires candidates for federal office to spend down leftover campaign money within two years after an election ends. Instead of letting candidates keep these funds indefinitely, the law forces them to either return the money to donors, give it to charity, or transfer it to political parties. The only exception is if a candidate officially registers to run for another election before that two-year deadline—in that case, they can keep the money for their next campaign.

The bill also prevents candidates from giving leftover campaign funds to their own relatives, except when paying legitimate campaign debts that were already reported. Additionally, if a candidate becomes a lobbyist or works for a foreign government, they must immediately spend down all remaining campaign funds rather than waiting out the full two-year period. When candidates register as lobbyists or foreign agents, they'll have to certify under penalty of perjury that their campaign committees have properly disposed of all leftover money according to these new rules.

Essentially, this law closes what some see as a loophole where politicians could accumulate personal wealth through campaign funds. It takes effect after the 2026 election and applies to all federal elections going forward.