Foreign Nationals: Political Data Donors?

Foreign nationals have long sought to influence US elections to advance their interests. Federal law prohibits foreign nationals from contributing money directly to US political campaigns. However, foreign money can still make its way into elections through loopholes and lax enforcement of the law. Foreign nationals who are not green card holders can provide uncompensated volunteer services to campaigns, but they should exercise caution and seek legal counsel before doing so.

Characteristics and values of foreign national involvement in political campaigns

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Foreign nationals are prohibited from contributing to US campaigns

Foreign nationals are prohibited from contributing financially to US campaigns and elections. This includes federal, state, and local elections, as well as primary elections, conventions, or caucuses. The Federal Election Campaign Act (FECA) and federal law explicitly prohibit foreign nationals from making any financial contributions, either directly or indirectly, to American political campaigns and candidates. This prohibition also extends to independent expenditures, disbursements, and donations to political party committees and organizations.

Foreign nationals are also barred from participating in decision-making processes regarding election-related activities. They cannot direct, dictate, control, or influence the decisions of any person or entity, such as a corporation, labor organization, or political committee, in relation to their election-related activities. This ensures that foreign nationals do not have a say in how funds are contributed, donated, spent, or disbursed during elections.

The definition of a foreign national in this context is any individual who is not a US citizen and does not have lawful permanent resident status, also known as a green card holder. This prohibition on foreign national contributions is enforced by the Federal Election Commission (FEC), which can impose civil fines or refer cases to the Department of Justice (DOJ) for criminal prosecution if the law is violated.

Despite these laws and enforcement mechanisms, there have been instances where foreign money has influenced US elections. Some US companies and organizations have received funding from foreign sources, including foreign nationals, and used it to support political candidates and PACs. This has raised concerns about foreign interference in US elections and the potential for manipulation of American voters.

Foreign nationals can provide uncompensated volunteer services to campaigns

Foreign nationals are prohibited from contributing money directly to U.S. political campaigns. The Federal Election Campaign Act (FECA) makes it illegal for foreign nationals to contribute financially to any American election—federal, state, or local. This includes decisions concerning contributions, donations, expenditures, or disbursements. American candidates can also violate the statute by receiving, soliciting, or accepting foreign contributions.

However, foreign nationals can provide uncompensated volunteer services to campaigns. The Act provides that the "volunteer" exemption applies as long as the foreign national is not compensated by anyone. For example, in Advisory Opinion 1987-25, the Federal Election Commission (FEC) allowed a foreign national student to provide uncompensated volunteer services to a presidential campaign.

It is important to note that the "non-compensated" rule is vague, and the FEC has addressed its nuances in advisory opinions. While one opinion allowed a foreign national to provide volunteer services to a presidential campaign, another prohibited a foreign national artist from donating their services in connection with fundraising for a Senate campaign.

The FEC is responsible for administering and enforcing federal campaign finance laws, but critics argue that they have repeatedly failed to enforce the laws banning foreign money in elections. This has raised concerns about increasing the risk of foreign election interference.

As a result, foreign nationals interested in contributing to U.S. political campaigns should exercise caution and seek legal counsel to ensure they comply with the relevant laws and regulations.

Foreign nationals can donate to Social Welfare Organizations (SWOs) which can donate to political campaigns

Foreign nationals are prohibited by federal law from contributing to any federal, state, or local elections in the United States. This includes donations, expenditures, and disbursements, whether direct or indirect, to political party committees, organizations, or candidates.

However, there is a loophole. Federal law allows Social Welfare Organizations (SWOs) to keep their donors secret, as long as at least half of their activities are non-political. This means that foreign nationals can donate to SWOs, and these organizations can then donate to political campaigns, such as Super PACs, without disclosing their foreign donors.

While this practice provides a way for foreign nationals to indirectly contribute to political campaigns, it is important to note that there are legal restrictions. Foreign nationals are prohibited from earmarking donations to SWOs as campaign contributions for specific candidates. Doing so would violate the law.

The existence of this loophole has raised concerns about foreign interference in US elections. Despite the FEC's commitment to enforcing the ban on foreign election spending, there have been instances where foreign money has influenced US elections, such as the 2016 election and the 2018 election cycle, where Russian efforts to influence American voters were prominent.

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Foreign-owned US subsidiaries can contribute to federal candidates

Foreign nationals are prohibited from contributing to political campaigns in the United States. Federal law prohibits foreign nationals from "directly or indirectly" injecting money into US elections, whether federal, state, or local. This includes donations to political party committees, independent expenditures, and electioneering communications.

However, a loophole exists that allows foreign-influenced money to enter US politics. US-registered corporations that are subsidiaries of foreign corporations or have foreign ownership can contribute to political campaigns. These subsidiaries can establish and administer a separate segregated fund to make contributions to federal candidates as long as they are incorporated in the US, have a principal place of business in the US, and can demonstrate that contributions are not financed by the foreign parent company.

The Federal Election Commission (FEC) is charged with enforcing these laws, but critics argue that they have failed to do so effectively, allowing foreign money to influence US elections. For example, in 2018, American Ethane Co., a US company majority-owned by Russian nationals, contributed to federal candidates and PACs using funds obtained through loans from foreign entities.

While the FEC has suggested prioritizing cases involving the ban on foreign election spending, enforcement remains challenging. The bipartisan agreement to investigate American Ethane Co. in 2019 ended in a deadlock, with Republican commissioners characterizing the foreign money as an "investment" in an American company rather than foreign interference.

The issue of foreign-influenced corporate money in US politics is complex and ongoing, with states taking varying approaches to address it. Some states, like Colorado, Michigan, Minnesota, and Montana, prohibit corporate contributions to candidates altogether, while others, like Washington, permit donations from corporations doing business in the state.

Foreign nationals cannot participate in decision-making for election-related activities

Foreign nationals are prohibited by federal law from participating in decision-making for election-related activities. This includes making contributions, donations, expenditures, or disbursements in connection with any federal, state, or local election. It also covers decisions concerning the administration of a political committee. The Federal Election Campaign Act (FECA) makes it illegal for foreign nationals to contribute financially to any American election campaign, be it federal, state, or local.

The law also prohibits foreign nationals from directly or indirectly participating in decisions involving election-related activities. This means that foreign nationals cannot have any influence on the strategies, tactics, or choices made by political campaigns. They are also barred from providing substantial assistance in the making, acceptance, or receipt of contributions or donations to political campaigns.

While the Federal Election Commission (FEC) is tasked with enforcing these laws, there have been instances where foreign money has influenced US elections. For example, during the 2016 election, there was Russian interference in an attempt to manipulate American voters and help elect their preferred candidates. In another instance, the FEC failed to take action against a US company, American Ethane Co., which used funds from Russian oligarchs to support federal candidates and Political Action Committees (PACs) in the 2018 election cycle.

Despite these challenges, the law remains clear that foreign nationals cannot participate in decision-making for election-related activities. This is to ensure that foreign interests do not influence American elections and to protect the integrity of the democratic process in the United States.

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