Tag Archives: FEC

Donor Disclosure Requirements Expand After Supreme Court Order

In a startling turn of events that will alter election spending decisions in the run-up to the general election, and after, the Supreme Court reversed a temporary stay issued by Justice Roberts on Friday, and left in place a district court decision that dramatically increased the disclosure obligations for entities spending on public communications that … Continue Reading

Covington Publishes Update on Recent FEC Enforcement Activity

After a surprisingly active 2017, the Federal Election Commission’s enforcement efforts have slowed noticeably in the early months of 2018. In February, former Commission Lee Goodman’s departure from the agency left the Commission with only four members. While the remaining Commissioners can still form a quorum, unanimity is required for all official agency action. Perhaps … Continue Reading

Bank Loans to Federal Candidates

FEC audit reports often address obscure topics, but today one touched on an important issue for banks.  At an open meeting, a majority of FEC Commissioners would not support a staff recommendation that a bank violated the campaign finance laws when it made a loan based on collateral that was commercially reasonable under the banking … Continue Reading

Political Law Potpourri—The Consolidated Appropriations Act of 2018

While the din over a possible government shutdown dominated the headlines, political law played a supporting role in the recently enacted Consolidated Appropriations Act (Pub. L. No. 115-141).  The content and omissions of the so-called “Omnibus” spending bill will be of interest to political actors in all sectors, but particularly those operating nonprofit entities engaged … Continue Reading

Federal Court Decision Puts Brakes on Issue Ads

As the 2018 mid-term season approaches, viewers may be seeing fewer issue advertisements paid for by so-called “dark money” groups.  In a consequential decision, a federal court in Washington, D.C. concluded yesterday that all “electioneering communications” presumptively count as political spending for purposes of determining whether a group should register as a political action committee … Continue Reading

FEC Announces Internet Rulemaking

The Federal Election Commission (FEC) unanimously approved a Notice of Proposed Rulemaking, beginning the formal process of amending the agency’s regulations on internet political disclaimers.  The proposal and the Commissioners’ comments at the hearing reflect a fair amount of consensus on how to refashion rules that have been the source of significant disputes over the … Continue Reading

U.S. House Considering Major Change to Trade Association PAC Fundraising Rules

The U.S. House Committee on Appropriations is considering a major change to the way trade associations are allowed to raise money into their political action committees (PACs).  Currently, if a trade association wants to solicit money from its member companies’ employees, it must first get advance approval from the company, and each company can authorize … Continue Reading

Will the FEC Declare War on Russia?

Noting that we are at an “all hands on deck” moment for our democracy, FEC Commissioner Ellen Weintraub circulated to the Commission yesterday a document citing former Vice President Dick Cheney for the proposition that the United States is now at war with Russia, and that “[e]very part of our government that has jurisdiction over … Continue Reading

The FEC Revisits the Ban on Foreign Nationals’ Financing of American Elections

On Thursday, the FEC will return to the question of foreign nationals’ involvement in United States elections. This is an important question that deserves appropriate attention from our government.  Be it the role of Chinese government-linked funds in the 1996 presidential campaign or the Russian government-linked cyber intrusion in the 2016 presidential race, Congress and … Continue Reading

What’s Next for the FEC?

Commissioner Ann Ravel’s decision to resign from the Federal Election Commission will have short term and long term effects on an agency empowered to interpret and enforce the federal campaign finance laws and disclose the money raised and spent in federal elections.  Its short term effects should be minimal.  The statute requires four votes for … Continue Reading

FEC Increases Contribution Limits to Party Committees, Leaves Candidate Limits the Same

The Federal Election Commission has announced contribution limits for the 2017-2018 election cycle.  The new limits are effective January 1, 2017. The FEC did not change the limit on the amount an individual can contribution to a candidate, leaving the limit at $2700 per election.  Because the primary and general count as separate elections, individuals may … Continue Reading

Covington Updates Investigations Manual for House and Senate Chiefs of Staff

Covington today released an updated version of its manual for Chiefs of Staff to Members of Congress concerning best practices for responding to government investigations of Members and their staff.  Titled “A How-To Guide for Chiefs of Staff,” the manual describes how government investigations unfold and the steps that Chiefs of Staff need to take … Continue Reading

Federal Court in D.C. Rules Against FEC in Important Disclosure Case

In an important decision, U.S. District Judge Christopher Cooper today ordered the Federal Election Commission to reconsider its dismissal of a complaint filed by CREW against two tax-exempt advocacy organizations that have never registered with the FEC.  CREW alleged that the two groups, American Action Network and Americans for Job Security, had as their “major … Continue Reading

FEC to Reconsider Political Involvement by U.S. Subsidiaries of Foreign Corporations on Tuesday

Foreign nationals, both individuals and corporations, have long been barred from making contributions in federal, state or local elections in the United States. The statutory prohibition includes contributions made “directly” or “indirectly,” bars the solicitation as well as the making of contributions, and since 2002, includes a ban on expenditures, independent expenditures, or electioneering communications … Continue Reading

IRS Steps into Fray on Political Activities

The Internal Revenue Service (IRS) recently issued two private letter rulings (PLRs) that may be interesting for tax-exempt organizations that engage in political activity. In the first ruling, the IRS held that a company could not deduct payments made to charity under a PAC matching contribution program as an “ordinary and necessary business expense.”  While … Continue Reading

Coercing Contributions at Work: The FEC’s Latest Decision

On Friday, three Federal Election Commission (FEC) Commissioners provided a clear description of their understanding of the facts and law that led them to oppose opening an investigation into whether Murray Energy coerced its employees into making political contributions. Statement of Reasons of Chairman Petersen and Commissioners Hunter and Goodman, FEC MUR 6661.  While clarity … Continue Reading

Forming and Operating Super PACs: A Practical Guide for Political Consultants in 2016

Covington recently released a high-level primer that provides political consultants with a practical resource for creating and running a federal Super PAC in a legally compliant manner.  The primer, which is available here, explains the history and basic rules that apply to federal Super PACs.  The primer then discusses the following key topics: checklist of … Continue Reading

Highlights from Wagner; D.C. Circuit Upholds Contributions Restrictions But Limits Ruling

The Wagner case, decided today by the D.C. Circuit, is important because of its analysis of the constitutionality of federal campaign contribution restrictions and, by extension, of pay-to-play laws generally. Covington has been monitoring this case since the district court decision in 2012, to the argument before the D.C. Circuit in 2013, and the decision … Continue Reading

The FEC Draws A Clear Line

In a decision certain to receive close scrutiny by those representing potential presidential candidates, the FEC has dismissed the allegations made by Stop Hillary PAC against the Super PAC Ready for Hillary, Friends of Hillary and Senator Clinton herself. FEC MUR 6775. The FEC concluded in one part of that decision, that even if Senator … Continue Reading

5 Myths about Super PACs

Few subjects in federal campaign finance law are so frequently garbled by commentators, the press and the public as what a Super PAC is and how it operates.  Here is a short list of common mistakes. 1.  Super PACS are “shadowy” “dark money” groups that mask where their money comes from and how its spent.  … Continue Reading

Covington Issues Client Advisory on Bank Loans and Transactions with Candidates and Political Groups

Covington recently issued an advisory to its bank and financial institution clients explaining the rules governing their business dealings with candidates and political groups. The advisory, which is available here, deals with loans and other transactions that sometimes cause banks to run afoul of Federal Election Commission regulations or government ethics rules. While banks are … Continue Reading
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