WASHINGTON – Trial lawyers are hoping to blend into the Make America Great Again crowd to save their access to controversial funding – months after backing President Donald Trump’s opponents.
Law firms and litigation funders that have historically supported Democratic campaigns are struggling to convince Republican lawmakers to drop a new tax in the Senate version of President Trump’s “Big Beautiful Bill” that could decimate third-party litigation funding.
TPLF companies provide law firms with big bucks to pursue both lawsuits and advertising to find thousands of clients to sue over issues like contaminated water at Camp Lejeune. In exchange, the funder gets a percentage of the winnings.
The tax on litigation finance was cut from the final bill after the Senate parliamentarian said it didn’t comply with rules for passing a bill with a simple majority. The action came after heavy lobbying by the TPLF industry, which earlier got the tax rate cut to 32% from 41%.
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