H.B. No. 2884 introduces a new chapter, Chapter 28, to the Civil Practice and Remedies Code, which mandates the disclosure of certain financial relationships in civil actions involving United States defense contractors. The bill defines "defense contractor" and "sanctioned or embargoed nation," and specifies that claimants must disclose any funding or financial support received from entities affiliated with sanctioned nations. This disclosure must be made as part of the initial disclosures required under Texas Rules of Civil Procedure and must include the identity of all funding sources. Claimants are also required to supplement these disclosures throughout the duration of the action if new funding is received or identified.

Additionally, the bill prohibits the withholding of required disclosures for any reason, including claims of privilege, and establishes that courts cannot limit the disclosure of proprietary or confidential information related to funding sources. If a claimant fails to comply with these requirements, the court may impose sanctions, including staying the proceedings or dismissing the action with prejudice for willful noncompliance. The provisions of this chapter apply to actions pending in trial courts on the effective date of the Act or filed thereafter. The Act is set to take effect immediately upon receiving a two-thirds vote from both houses or on September 1, 2025, if that vote is not achieved.

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