S 616 · 119th Congress · Enacted as 119-57

Foundation of the Federal Bar Association Charter Amendments Act of 2025

federally chartered organizationsnonprofit governancelegal professionfederal charter reform
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Last action 2025-12-12

Sponsored by Sen. Kennedy, John [R-LA] (R) — LA

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The Foundation of the Federal Bar Association Charter Amendments Act of 2025 revised the federal charter for the Foundation of the Federal Bar Association, shifting key governance decisions — including membership terms, board responsibilities, officer elections, and principal office location — from the charter itself to the organization's own bylaws.

What this law does

What it does

The act amended Title 36 of the United States Code to update the federal charter governing the Foundation of the Federal Bar Association. It removed the requirement that the Foundation be incorporated and domiciled in the District of Columbia, instead allowing the board of directors to choose and specify a U.S. location in the bylaws. It moved authority over membership eligibility, board responsibilities, and officer elections from the charter to the bylaws. It rewrote the restrictions section to explicitly prohibit directors and officers in their corporate capacity from contributing to or participating in political activities, and clarified that income and assets may be used to reasonably compensate or reimburse officers, directors, members, and employees, and to award grants to Federal Bar Association chapters.

The act also expanded the prohibition on loans to include members and employees — not just directors and officers — and changed the rule on dissolution so that remaining assets are distributed as the board directs rather than deposited in the U.S. Treasury. Service-of-process rules were updated to require compliance with the law of whichever state or district the Foundation is incorporated in.

Key provisions

  1. 1Removed the requirement for the Foundation to be incorporated and domiciled in the District of ColumbiaSec. 2
  2. 2Shifted authority over membership terms, board responsibilities, and officer elections from the federal charter to the Foundation's bylawsSec. 3
  3. 3Rewrote governing body provision so that board composition, responsibilities, and officer elections are determined entirely by the bylawsSec. 4
  4. 4Rewrote restrictions section: prohibits political activity by directors and officers in corporate capacity; clarifies permissible compensation, reimbursement, and grants; expands loan prohibition to members and employeesSec. 5
  5. 5Changed the principal office from a fixed District of Columbia address to any U.S. location decided by the board and specified in the bylawsSec. 6
  6. 6Changed dissolution rule so remaining assets are distributed as directed by the board of directors rather than deposited in the U.S. TreasurySec. 8

Who is affected

The Foundation of the Federal Bar Association — its board of directors, officers, members, and employees — is directly affected. The Foundation's Federal Bar Association chapter affiliates are also touched by the revised grant-award language. No broader public population or federal agency is operationally directed by the act.

Why it matters

For the Foundation and its leadership, the act provides greater flexibility: governance details no longer need a congressional amendment to change — they can be updated through the bylaws. Directors, officers, and members gain clearer rules on permissible compensation and grants, while the expanded loan prohibition and updated dissolution rules tighten accountability and align the charter with standard nonprofit governance practices.

What changed

Changes to existing law

Amends 36 U.S.C. § 70501 (Sec. 2)

Strikes the subsection requiring the Foundation to be incorporated in the District of Columbia

Amends 36 U.S.C. § 70503 (Sec. 3)

Replaces fixed membership terms with a bylaws-governed membership eligibility structure

Amends 36 U.S.C. § 70504 (Sec. 4)

Replaces charter-set board and officer rules with bylaws-governed governing body provisions

Amends 36 U.S.C. § 70507 (Sec. 5)

Rewrites restrictions to add political-activity prohibition for directors/officers, clarify compensation and grant rules, and expand loan prohibition to members and employees

Amends 36 U.S.C. § 70508 (Sec. 6)

Removes District of Columbia as required principal office location; allows board to designate any U.S. location in bylaws

Amends 36 U.S.C. § 70510 (Sec. 7)

Updates service-of-process requirement to reference the law of the state or district of incorporation

Amends 36 U.S.C. § 70512 (Sec. 8)

Changes dissolution rule so remaining assets are distributed per board direction rather than deposited in the U.S. Treasury

Effective dates

  • Entire act takes effect upon enactment2025-12-12

How it works

Because the act is largely self-executing upon enactment, the Foundation's board of directors must update the organization's bylaws to specify the principal office location, membership terms, board responsibilities, and officer election procedures previously fixed in the charter. No federal agency rulemaking is required. The board's future decisions on compensation, grants, and dissolution will be governed by the newly rewritten charter provisions and any conforming bylaw amendments the board adopts.

Legislative status & sources

Latest action

Became Public Law No: 119-57.

2025-12-12

Official CRS summary

Show the CRS summary

This act revises the federal charter for the Foundation of the Federal Bar Association to shift authority from the charter to the bylaws.

Specifically, it makes the following changes:

  • removes the requirement for the foundation to be incorporated and domiciled in the District of Columbia;
  • requires the board of directors to decide, and specify in the bylaws, the location of the principal office;
  • specifies that the bylaws—not the charter—must provide for the terms of membership, the responsibilities of the board of directors, and the election of officers;
  • prohibits a director or officer, in his or her corporate capacity, from contributing to, supporting, or participating in political activities;
  • allows income and assets of the corporation to be used to reasonably compensate or reimburse expenses of an officer, director, or member; to award a grant to the Federal Bar Association chapter of an officer, director, or member; and to reasonably compensate employees;
  • expands a prohibition on loans for directors and officers to include members and employees; and
  • specifies that on dissolution or final liquidation, any remaining assets must be distributed as provided by the board of directors instead of deposited in the Treasury.

From the Congressional Research Service.

Legislative subjects

District of Columbia; Federally chartered organizations; Law; Lawyers and legal services

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S 616: Foundation of the Federal Bar Association Charter Amendments Act of 2025 | Legislation Reporter