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"act of foundation" is a correct and usable phrase in written English.
It is typically used to refer to the act of establishing or creating something, such as an organization, institution, or society. Example: The act of foundation for the charity organization was a momentous event, bringing together a group of passionate individuals who were determined to make a positive impact in their community.
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The favorite example for Arendt is the American Revolution, because there the act of foundation took the form of a constitution of liberty.
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In her An Investigation Concerning the State (1925), Stein argues that states are collective persons, which are sovereign and which are posited by free acts of "foundation" (Staatsgründung, 1925, 30).
A devastating, 100,000-barrel spill in Santa Barbara in 1969 killed thousands of seabirds and led to the passage of the National Environmental Policy Act, the foundation of U.S. environmental law, and the creation of the federal Environmental Protection Agency.
The Sherman Antitrust Act of 1890, the foundation of America's competition policy, was partly a response to complaints by small firms that larger rivals wanted to drive them out of business.
Investors were not told of Citi's role in choosing securities, nor how it stood to benefit if defaults ensued.Those contentions alone would put Citi in violation of the disclosure provisions at the heart of the 1933 Securities Act, the foundation of market regulation.
While the U.S. government established the Fulbright Program and then the National Resource Centers funded by Title VI of the National Defense Education Act of 1958, private foundations, especially Ford, Rockefeller, and Carnegie, began to invest major resources into area studies and projects as well.
Take the 1935 National Labor Relations Act (NLRA), or the Wagner Act, the foundation of modern labor law.
The Clayton Act, a foundation of federal antitrust law, allows only direct purchasers to recover damages.
The simple act of listening is the foundation of respect and at the heart of what makes CE meaningful.
These acts make up a kind of foundation for all the bioethical regulations, including the biogenetic regulations, of the Council of Europe.
It was suspected in certain quarters, most notably at the I.R.S., that foundations might be little more than tax-avoidance schemes, and the Revenue Act of 1950 forbade unreasonable amassing of foundation income, so the stuff had to be spent.
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Since I tried Ludwig back in 2017, I have been constantly using it in both editing and translation. Ever since, I suggest it to my translators at ProSciEditing.

Justyna Jupowicz-Kozak
CEO of Professional Science Editing for Scientists @ prosciediting.com