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
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 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
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
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
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
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
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
Last week the Federal Election Commission (FEC) took incremental steps toward defining the rules for those considering becoming a candidate and how candidates interact with Super PACs. FEC AO 2015-09 (Senate Majority PAC and House Majority PAC). As expected, the agency could not reach consensus on most of the legal issues raised, but it did … Continue Reading
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
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
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 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
The Federal Election Commission has increased the limits on the amount an individual can contribute to a candidate or national political party for the 2015-2016 election cycle. An individual can now give up to $2,700 per election to a candidate for federal office, up from $2,600. Because the primary and general count as separate elections, individuals may now give $5,400 per candidate … Continue Reading
If you skipped to the final pages of the omnibus spending bill unveiled last night to see how it ends, you would find a rather dramatic change in campaign finance law related to party committee contribution limits. Page 1599 (of 1603) of the spending package contains amendments to the Federal Election Campaign Act (FECA) that … Continue Reading
A U.S. District Court judge today vacated an FEC regulation that limited the degree to which corporations and labor unions must disclose their donors when they pay for an Electioneering Communication. Van Hollen v. FEC An Electioneering Communication is a broadcast, cable or satellite communication that features a federal candidate, airs within 30 days of … Continue Reading
In a little noticed decision earlier this month, the FEC announced the settlement of an enforcement case that sets a compliance standard that few companies may currently meet. FEC ADR Case 708 (Marsh & McLennan Companies, Inc. PAC). The outcome is even more surprising because the case involved a single errant donor the company brought … Continue Reading
The rules on corporate contributions to Super PACs were made clearer today when the Federal Election Commission (FEC) released its finding that Chevron Corporation’s $2.5 million contribution in 2012 to the Congressional Leadership Fund (a Super PAC) had not violated the bar on government contractors making contributions in federal elections. Public Citizen and several environmental … Continue Reading
While McCutcheon concluded the government’s anti-circumvention rationale was too speculative and attenuated to justify the biennial aggregate limits, the Court did discuss “multiple alternatives available” to the government that would serve this interest while still satisfying the First Amendment. One such suggestion involved “earmarking” rules—which bar donors from trying to circumvent the base limits by … Continue Reading
The Supreme Court’s latest major campaign finance decision, McCutcheon v. FEC, “does not involve” a challenge to current limits on contributions to political party committees and PACs, which the Court “previously upheld as serving the permissible objective of combatting corruption.” But it nonetheless provides fodder for those who would challenge party and PAC limits. The … Continue Reading
In his controlling opinion yesterday in McCutcheon v. FEC, Chief Justice John Roberts struck down the federal aggregate campaign contribution limits. These limits capped the total amount one individual could give to candidates, party committees, and PACs in a two-year election cycle. The purpose of the limits was to prevent donors from circumventing the per-candidate … Continue Reading
That the FEC often deadlocks is noteworthy but no longer newsworthy. How parties who are regulated by the FEC deal with this logjam, however, remains hotly debated and timely. The prospect of 3-3 votes on advisory opinion requests, in particular, is often the subject of much handwringing. How should a party deal with a deadlock … Continue Reading
The press and comedians have recently focused on campaigns loading “B-roll” footage onto Internet sites where Super PACs and other outside spending groups can download the footage to use in political ads. Senator McConnell’s campaign’s use of this tactic has drawn the most attention, but it is far from the first or only campaign to … Continue Reading
The Obama administration announced yesterday that it will revise the regulations that define if an individual is an “executive” or “administrative” employee exempt from the overtime pay provisions of the Fair Labor Standards Act (FLSA). This could have an unexpected impact on corporate PACs, potentially shrinking the number of employees eligible to be solicited for … Continue Reading
