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Starting July 1, 2026, organizations that engage in certain political or lobbying activities would become ineligible to receive state government contracts or grants; this includes entities that participate in political campaigns for candidates or ballot measures, that spend more than an insubstantial part of their activities trying to influence legislation, or whose main purpose can only be achieved through legislative action and that actively advocate for it. Separately, any organization applying for or holding a state contract or grant would be barred from making political contributions—to a political party, candidate committee, or anyone else for a political purpose—for the entire time they are seeking or using public funds. State agencies would be required to verify a grant recipient's eligibility before awarding funds, include this certification in grant agreements, and claw back money already paid out if a recipient is later found to have violated these rules; agencies would also have to report any clawbacks to a legislative oversight committee. The bill exempts individuals acting in their personal capacity, as well as nonpartisan voter education, registration efforts, and neutral candidate forums, from these restrictions.