The House Ethics Committee concluded 2024 by releasing a memorandum updating its guidance for Members’ personal use of political campaign funds (“updated guidance”).  While the Federal Election Campaign Act (“FECA”) and Federal Election Commission (“FEC”) regulations prohibit the personal use of campaign funds, House Rule 26.6(b) imposes additional restrictions on the “personal use” of campaign funds by a Member, her or his family, and other persons. 

The updated guidance reminds Members that House Rules are separate from, and in addition to, FEC regulations on the personal use of campaign funds.  Both the Ethics Committee and the FEC have emphasized their separate and independent jurisdiction, meaning that Members, their families and associates who are subject to House rules must comply with both regimes.

Additionally, the Senate also has its own rule (Rule 38.2) prohibiting Senators’ personal use of campaign funds.

While the House Ethics rules and FEC regulations are compatible, they are not identical.  Here are some of the more important distinctions:

• What funds are covered?  The FEC’s regulations on “personal use” of campaign funds are famously limited to a candidate’s campaign account.  The guidance makes clear that House Rules reach beyond a candidate’s principal federal campaign account to all “[c]ampaign funds under the Member’s control.”  In practice, this means that while FEC rules cover a candidate’s principal campaign committee, the House rules reach leadership PACs, state campaign accounts, and any other political committee “affiliated” with a Member. 

• How are expenditures verified?  While the House Rules require campaign expenses to be both legitimate and verifiable, FECA imposes a more permissive standard for what records are sufficient to justify reported campaign expenses. The House Rules do not require that the records be maintained in a particular format, but must contain information including “date, time, and location,” “[t]he specific campaign, political, or official purpose of the expenditure,” the names of those present, the “purpose[] for any travel expenditures” and “[t]he specific politically-or officially-related activities in which the Member (or other participant) engaged, including a description of event or topics of discussion.”  The FEC, however, requires only the amount, date, name, and address of the payee and the purpose of the expenditure and back up records including a receipt or invoice from the payee or a canceled check, and the relevant credit card bill or receipt.  Though it may be useful to have more records if one needed to defend a challenge before the FEC, the House guidance is more specific about what records are expected to meet the “verification” requirement.

• When are expenditures deemed legitimate?  Under House Rules, campaign expenditures must have a “bona fide campaign purpose.”  Expenditures which are not primarily for a campaign purpose, but which may incidentally benefit the campaign do not meet this standard.  When determining an expenditure’s primary purpose, the Ethics Committee will consider factors including the time dedicated to the expenditure’s purpose, the main reason for making the expenditure, and whether the expenditure would be made absent its primary purpose.  Under the FEC’s similar but distinct “irrespective test,”  an impermissible personal expense is an expenditure that would be made irrespective of the candidate’s campaign or duties as an officeholder. 

• What expenses are not considered “personal use”?  In the past decade, the FEC has determined that certain costs that arise from a person’s status as a federal candidate or office holder may be paid with campaign funds and not considered “personal use.”  Approved expenses include (a) personal security of Members, including the cost of improving home security; (b) the cost of childcare and elder care needed to perform campaign duties; and (c) cybersecurity costs incurred because of a candidate or Member’s status as such.  However, these rulings interpret FECA and FEC regulations and do not bind the House Ethics Committee in interpreting the House Rules, including with respect to verification of expenses. For example, the updated guidance states that “Campaign funds may not be used to enhance an individual’s lifestyle, for personal enjoyment or entertainment, or to pay an individual’s personal obligations.”  Members must maintain records to verify expenses (as discussed above) “to document the primary purpose of each expenditure” and show that it is a legitimate—and not a personal—expense. 

• What rules govern expenses relating to family members?  When making and recording expenses that benefit a Member’s family members, the House Rules require more of a Member than does the FEC.  The House Rules dictate that Members “should maintain” certain records, including a “written contract,” “[a] log of campaign work done by the family member including hours worked and services provided,” and “[t]he efforts made to establish fair market value for the transaction and receipts for those efforts.”  While these records could also prove useful in defending a case before the FEC (should one arise), the FEC’s regulations do not require political committees to maintain such detailed records. 

• How long must records be kept?  Under the House rules, campaigns must keep records that “document the primary purpose of each campaign expense” for at least three Congresses (six years).  In contrast, FEC rules merely require that records be maintained for three years after the relevant report is filed with the FEC, though the five year statute of limitations may cause some to keep records longer. 

Anyone receiving an inquiry related to an investigation involving the use of campaign funds should ensure that they understand this House Ethics Committee guidance as well as all other applicable laws, regulations, and procedures.  If you have any questions concerning the material discussed in this post, please contact members of our Election & Political Law, White Collar, and Congressional Investigations practices.