Latest Developments
- Foreign Nationals Prohibited from Funding California Elections A new law prohibits “foreign nationals” from funding California’s state and local elections. California has long prohibited involvement in state elections by foreign governments and principals. AB 953 extends prohibitions to “foreign nationals,” who may not make campaign contributions, expenditures, or independent expenditures. “Foreign nationals” are not U.S. citizens or not lawfully admitted permanent residents; the definition does not include participants in the federal Deferred Action for Childhood Arrivals (DACA) program. CA AB953 | 2025-2026 | Chaptered
- California Officials Must Disclose Prospective Jobs California’s high-level elected and appointed officials who file economic disclosures now must publicly disclose if they have accepted “prospective employment,” naming the employer and disclosing the position and date they accepted the offer. Regulators believe this will make it easier to track when an official may have acted in the best interests of the employer, rather than the public entity, after accepting a job offer. CA AB1286 | 2025-2026 – Chaptered
- Alaska Supreme Court Orders Response to Campaign Finance Subpoenas The Alaska Supreme Court ordered an independent expenditure committee and the Republican Governors Association to comply with subpoenas related to allegations they violated state campaign finance laws in the run-up to the 2022 election. The complaint alleges the RGA created A Stronger Alaska, funding it with $3 million, as a “shell entity to improperly spend money in support of (Governor Mike) Dunleavy’s reelection campaign without disclosing its donors as required by Alaska law.” The entities deny wrongdoing. Alaska Opinion and Dunleavy backers must comply with subpoenas
- Federal Judge Finds 501(c)(4) Tax Regulations Unconstitutional In closely watched litigation about political campaign intervention by social welfare organizations, a federal judge ruled that IRS regulations on nonprofits’ political activity are unconstitutionally vague in Freedom Path, Inc. v. Internal Revenue Service, et.al. However, the Court could not determine whether the conservative nonprofit known as Freedom Path was entitled to 501(c)(4) tax-exempt status. Parties now must submit briefs proposing new standards for both 501(c)(4) tax-exempt status and political activity. Election Law Blog and IRS Scandal Makes It to Court – WSJ
- Super PACs Agree to Large Settlement in New York According to an investigative report obtained from a public records act request, two super PACs, funded mostly by large individual donors, agreed to a record $900,000 fine to settle allegations they illegally coordinated, through common vendors, fundraising and shared strategic information, and falsely reported at least $20 million in political communications supporting Lee Zeldin’s 2022 New York gubernatorial campaign. The PACs did not admit wrongdoing. Zeldin is now the head of the Environmental Protection Agency and was not a party to the agreement. Super PACs Settle Case
Reminders:
- The Oklahoma Ethics Commission continues to face delays to launch its new and improved website. The website has been offline since mid-September; officials estimated it could go live October 28. OK campaign finance website offline Filers can check the status here: Oklahoma Ethics Commission Guardian 2.0 – Coming Soon. Regulators say they will waive late fees for candidates who have to submit reports, if needed, and those needing campaign finance records can request them directly from the Ethics Commission while the site is down.
In Case You Missed It:
- Lawmakers Across Multiple States Consider Ethics Reforms ProPublica reviewed the status of hundreds of ethics-related bills introduced this year in state legislatures, tracked by the bipartisan National Conference of State Legislatures’ethics legislation database. “While legislation strengthening ethics oversight did pass in some places, a ProPublica analysis found lawmakers across multiple states targeted or thwarted reforms designed to keep the public and elected officials accountable to the people they serve.” Ethics Reform Legislation Failed to Pass — ProPublica
- Ohio Elections Commission Hasn’t Collected $96 Million in Penalties An investigation by Ohio reporters determined that almost $96 million of the penalties the Ohio Elections Commission has handed out since 1987 remains uncollected. Commission struggled to recoup fees
- Election Board to Rule on Appeal of Senate President’s $10 Million Fine The Illinois State Board of Elections is expected to decide this week whether to side with a hearing officer’s recommendation to reject state Senate President Don Harmon’s appeal of a nearly $10 million fine for accepting excessive campaign contributions. IL Election Board to Decide Appeal of $10 Million Fine
- When Colorado Democrats Huddle With Lobbyists, Who Pays? Colorado state legislators spent a weekend with lobbyists at Vail’s Sonnenalp Hotel, leaving others to question who paid the bill. Who paid the tab? – The Colorado Sun
- K Street Firms Considering Strategies to Navigate Trump Administration Politico explores how companies are strategizing in new ways about interactions with the Trump administration or external stakeholders. K Street Shudders
- Continued Attention on Foreign Agents Check your lobbying firms’ FARA activities when hiring them: An investigative reporter’s new book explores foreign influence campaigns during the Biden and Trump years by federal lobbyists who also have U.S. clients. Book Review: ‘Devils’ Advocates,’ by Kenneth P. Vogel – The New York Times