The version of the One Big Beautiful Bill Act (OBBBA) that was passed by the U.S. Senate on July 1 did not include the taxation provisions on litigation finance originating from the Tackling Predatory Litigation Funding Act (TPLFA). As we indicated in our June 27 report, Potential OBBBA Implications for Litigation Finance ABS, if the TPLFA provisions had been passed in their proposed form, this could have had notable implications for litigation finance asset-backed securities (ABS).

The provisions were removed from the Senate version of the OBBBA following a ruling by the Senate Parliamentarian indicating that they were not compliant with the Byrd Rule. For the TPLFA provisions to be included in any reconciliation package, they would need to secure a 60-vote threshold.

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