Latest Developments:
- The Supreme Court of the United States, in FEC vs Cruz, ruled in favor of Sen. Ted Cruz in a case involving post-election contributions for repayment of a loan he made to his 2018 campaign which was $10,000 over the specified limit. As the Associated Press notes, in doing so, the Court struck down parts of the 2002 election reform law which held “that if a candidate lends his or her campaign money before an election, the campaign cannot repay the candidate more than $250,000 using money raised after Election Day.” The majority opinion notes “that the provision ‘burdens core political speech without proper justification’” and that there are still individual contribution limits per election, regardless if they come before or after election day.
- The Governor of Maryland signed a pair of ethics bills with consequences for both campaign finance and local ethics commissions conflict of interest policies. SB 239 prohibits “publish[ing] any contributor information from any report or statement…in newspapers, magazines, books, websites, or other similar media for…commercial solicitation.” HB 1059, requires bi-county ethics commissions to adopt “conflict of interest standards applicable to public officials” that mirror similar state conflict-of-interest laws.
In Case You Missed It:
- DOJ Sues Gaming Magnate: The US Department of Justice has sued casino owner and businessman Steve Wynn, who has close ties to former President Donald Trump, for allegedly lobbying on behalf of the Chinese government. As the New York Times reports, the lawsuit claims that, on multiple occasions “in 2017, Mr. Wynn pushed Mr. Trump [and other administration officials] to deport…[an unnamed] Chinese businessman who had sought asylum in the United States.” One objective of the lawsuit is to compel Mr. Wynn to register as a foreign agent. The DOJ claims “that it had asked Mr. Wynn to register himself as a foreign agent under the Foreign Agents Registration Act in 2018, 2021, and April of this year, but that he had refused.”
- Synchronization not Coordination: The New York Times profiles the slew of moderate Democratic candidates working around campaign finance regulations openly providing detailed information for friendly PACs to use on their behalf. In many cases, it takes the form of “a red-bordered box on an obscure corner of…[a campaign] website” with opposition research, target demographics, and talking points that PACs can easily adapt for ads and other campaign expenditures. According to the Times, “campaign watchdogs complain that the practice…effectively evad[es] the strict donation limits imposed on federal candidates.”
- Ban on Out-of-State Contributions Unfair?: A 2021 law Illinois banning out-of-state contributions for judicial candidates is now claimed to favor in-state wealthy interests and hamper small donors, such as family members living outside Illinois whose support might be essential. Injustice Watch reports on the numerous judicial candidates who have had to return mostly small donations from family members and claim that “[w]ealthier candidates often have the advantage of being able to self-fund their campaigns while leaving others unable to make up the difference”. Critics further contend that the ban “doesn’t address the bill’s intention of deterring outside influence that is more likely to come from in-state corporations and special interest groups.”
- When Work from Home Includes Campaign Offices: Business Insider covers the case of a Florida Congressional candidate facing FEC inquiries regarding her use of campaign funds for personal expenses like home electric bills. The article notes that, while there are narrowly defined personal uses such as private security that are permitted, candidates may not apply “donor funds for personal use, whether it be for rent, home internet, cable service, personal travel, or to pay for an energy bill…to prevent candidates from financially enriching themselves”. However, the candidate responded that her “campaign has used her home for campaign organizational and strategy meetings, campaign fundraising, general work space for campaign staff and volunteers” and other campaign related projects and that such reimbursements are valid.