As a former member of Congress and a lawyer who spent years watching how our legal system actually works, I am deeply troubled by a quiet but corrosive practice that has grown into a multibillion-dollar industry: third-party litigation funding. Outside investors and activist organizations put up the money for lawsuits in exchange for a cut of any settlement or judgment or to implement left-wing policies. Too often, the real funders hide behind shell companies, nonprofits, and layered ownership structures. Courts, defendants, and the public frequently have no idea who holds a financial or policy stake in the outcome, or who is effectively directing the litigation.

This anonymity is not a minor procedural quirk. It has become a preferred tool for left-wing socialists and progressive funders, including international NGOs and wealthy foreign donors, to wage lawfare against President Donald Trump, his agenda, and loyal Americans who support it. The result is delayed infrastructure, stalled energy projects, higher costs for businesses, and a drag on the American economy that hits workers and families hardest.

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Consider the pattern. Billionaire Reid Hoffman was revealed as a key funder of the E. Jean Carroll case against Trump, routed through a nonprofit front. New York Attorney General Letitia James has turned to the Democratic Attorneys General Association for support after federal scrutiny. That group’s donors include Amalgamated Bank,........

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