REP. LEGER FERNANDEZ INTRODUCES THE NO PAYOLA ACT TO REPEAL OUTRAGEOUS SENATE SELF-PAYOUT SCHEME - Insurance News | InsuranceNewsNet

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November 18, 2025 Newswires
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REP. LEGER FERNANDEZ INTRODUCES THE NO PAYOLA ACT TO REPEAL OUTRAGEOUS SENATE SELF-PAYOUT SCHEME

States News Service

The following information was released by the office of New Mexico Rep. Teresa Leger Fernandez:

Today, Congresswoman Teresa Leger Fernandez (D-NM) introduced the No Payola Act alongside 37 co-sponsors in the House, legislation to repeal a provision slipped into the government funding package that would send millions of taxpayer dollars directly into the personal bank accounts of eight U.S. Senators.

Unlike Republicanswho voted to protect and preserve this secret Senate payout and then introduced a bill to provide political cover for their voteRep. Leger Fernandez's No Payola Act doesn't just repeal the provision, it goes further by requiring any Senator who cashes in before repeal takes effect to return their payout.

The "payola" provision retroactively entitles certain Senators to receive $500,000 per "violation" for lawful federal subpoenas of their phone records during Special Counsel Jack Smith's investigation into the attempt to overturn the 2020 presidential election and the January 6th insurrection. Because of the definition of "violation" each Senator could receive at least a million dollars if not double that. Senator Graham has already stated he intends to get more than a millionall paid for by the American people.

"This Senate payola provision is corruption of the highest degree dressed up as legislation," said Rep. Leger Fernandez. "The Senate refused to help working families afford their health insurance premiums but inserted a secret payday for themselves. Corruption is contagious and the carrier of the disease is Trump who has used his Presidency to enrich himself and his family to the tune of at least $500,000 each. These Senators wanted in on the grift. No other American receives a payout of millions if their phone records were reviewed under a lawful grand jury or court order."

At the Rules committee, Rep. Leger Fernandez introduced an amendment to stop these payouts and fought late into the night to block taxpayer-funded rewards for those Senators while all Republicans on the Rules Committee rejected the amendment. While the best time to have stopped the payout was in Rules, Rep. Leger Fernandez bill would prevent the payouts from going into effect and stop any future handouts.

Under the law, eight Republican Senators could receive the taxpayer-funded payout:

Marsha Blackburn - Republican, Tennessee

Bill Hagerty - Republican, Tennessee

Lindsey Graham - Republican, South Carolina

Josh Hawley - Republican, Missouri

Dan Sullivan - Republican, Alaska

Tommy Tuberville - Republican, Alabama

Ron Johnson - Republican, Wisconsin

Cynthia Lummis - Republican, Wyoming

Background:

Under existing law, "Senate data" already receives special protection. But the new Senate-added provision vastly expands those protections and creates a private right of action entitling Senators to large cash payouts if their campaign or personal phone records were lawfully subpoenaed. These changes apply retroactively to January 1, 2022a date chosen specifically to cover Special Counsel Jack Smith's requests for records from eight Senators who were contacted as part of Donald Trump's efforts to overturn the 2020 election.

Smith did not wiretap or collect call content; he received only basic call-log metadata for four daysinformation akin to a phone billand did so under a valid grand jury subpoena and a lawful judicial nondisclosure order. His investigation adhered strictly to Department of Justice policy.

The No Payola Act is cosponsored by Representatives Amo, Ansari, Barragan, Bell, Beyer, Carson, Cohen, Crockett, Dexter, Fields, Fletcher, Frost, Sylvia Garcia, Horsford, Huffman, Kamlager-Dove, Kaptur, Robin Kelly, Landsman, Larsen, Larson, McGovern, Moulton, Neguse, Norton, Olszewski, Quigley, Randall, Salinas, Scanlon, Subramanyam, Swalwell, Thanedar, Titus, Tlaib, Tokuda, and Veasey.

The full text of the bill can be found here.

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