HR425-119

Reported

Repealing Big Brother Overreach Act

119th Congress Introduced Jan 15, 2025

Analysis under review: This bill has generated analysis that may be too generic or incomplete. Clause-level evidence remains available below.

Summary

What This Bill Does

This bill repeals the Corporate Transparency Act, the 2021 law that created federal beneficial ownership reporting for many corporations, limited liability companies, and similar entities. It repeals the CTA and the amendments made by that Act, then amends title 31 to remove references to section 5336 from civil and criminal penalty provisions. It also repeals section 6502 of the Anti-Money Laundering Act of 2020 and makes conforming changes to section 6509.

Who Benefits and How

Private LLC owners and small corporation owners benefit because they would no longer need to file beneficial ownership information with FinCEN or update ownership reports. Corporate formation law firms and registered agent businesses benefit from lower federal disclosure friction for entity formation clients. Real estate investors using LLCs benefit from restored privacy around ownership structures. Private equity fund managers and investment partnership managers benefit if portfolio entities avoid CTA reporting workflows. Businesses that missed filing deadlines benefit because CTA-related civil and criminal penalty exposure would be removed.

Who Bears the Burden and How

FinCEN beneficial ownership registry staff lose the statutory basis for collecting and maintaining CTA ownership reports. Money laundering investigators, tax evasion investigators, and corporate fraud prosecutors lose an ownership database intended to identify people behind shell companies. Anti-money-laundering compliance officers at financial institutions lose a federal data source that could support customer due diligence. Transparency and anti-corruption advocacy organizations bear a policy loss because anonymous ownership structures become easier to maintain.

Key Provisions

  • Repeals the Corporate Transparency Act and all amendments made by that Act.
  • Removes section 5336 references from title 31 civil penalty provisions.
  • Removes section 5336 references from title 31 criminal penalty provisions.
  • Repeals Anti-Money Laundering Act section 6502 and makes conforming section 6509 changes.

Evidence Chain:

This summary is generated from the full bill text using AI analysis. Expand "Detailed Analysis" below for identified beneficiaries/burden bearers with clause-level evidence links.

At a Glance

What This Bill Does

Repeals the Corporate Transparency Act and removes related beneficial-ownership reporting, penalty, and enforcement references from title 31 and the Anti-Money Laundering Act of 2020.

Key Policy Areas

Financial Regulation, Corporate Transparency, Anti-Money Laundering, Business Compliance

Primary Purpose

Repeals the Corporate Transparency Act and removes related beneficial-ownership reporting, penalty, and enforcement references from title 31 and the Anti-Money Laundering Act of 2020.

Policy Domains

Financial Regulation Corporate Transparency Anti-Money Laundering Business Compliance

House resolution provisions

Identified Gains
  • Private LLC owners
  • Small corporation owners
  • Corporate formation law firms
  • Registered agent businesses
  • Real estate investors using LLCs
  • Private equity fund managers
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih
Private LLC owners:
Small corporation owners:
Registered agent businesses:
Private equity fund managers:
Corporate formation law firms:
Real estate investors using LLCs:
Identified Costs
  • FinCEN beneficial ownership registry staff
  • Money laundering investigators
  • Tax evasion investigators
  • Corporate fraud prosecutors
  • Anti-money-laundering compliance officers
  • Transparency advocacy organizations
Model: codex-gpt-5 | Version: bill_summary_v2 | Source: ih
Tax evasion investigators:
Corporate fraud prosecutors:
Money laundering investigators:
Transparency advocacy organizations:
Anti-money-laundering compliance officers:
FinCEN beneficial ownership registry staff:

Legislative Progress

Reported
Introduced Committee Passed
Jun 18, 2026

Additional sponsors: Mr. Murphy, Mrs. Harshbarger, Mr. Allen, Mr. Begich, …

Jun 18, 2026

Reported with an amendment, committed to the Committee of the …

Apr 21, 2026

Committee Consideration and Mark-up Session Held

Apr 21, 2026

Committee Consideration and Mark-up Session Held

Jan 15, 2025

Referred to the House Committee on Financial Services.

Jan 15, 2025

Introduced in House

Jan 15, 2025

Mr. Davidson (for himself, Mr. Balderson, Mr. Bergman, Mr. Biggs …

Stakeholder Effects

cui bono?

How this legislation distributes effects. Mention counts reflect frequency, not effect magnitude.

Business Regulation
2 mentions across 1 clause
+2 positive

Private LLC owners, Small corporation owners

Professional Services
1 mention across 1 clause
+1 positive

Corporate formation law firms

Government
1 mention across 1 clause
-1 negative

FinCEN beneficial ownership registry staff

Law Enforcement
1 mention across 1 clause
-1 negative

Money laundering investigators

Finance
1 mention across 1 clause
-1 negative

Anti-money-laundering compliance officers

Advocacy Groups
1 mention across 1 clause
-1 negative

Transparency advocacy organizations

1/2
sections analyzed
Full impact breakdown

Bill Structure & Actor Mappings

Who is "The Secretary" in each section?

Domains
Financial Regulation Corporate Transparency Anti-Money Laundering Business Compliance
Actor Mappings
"fincen"
→ Financial Crimes Enforcement Network

We use a combination of our own taxonomy and classification in addition to large language models to assess meaning and potential beneficiaries. High confidence means strong textual evidence. Always verify with the original bill text.

Learn more about our methodology