Omar Bennett
Foreign involvement in political campaigns has been a concern for many nations, especially in the context of election spending and influencing. The laws and regulations surrounding this issue vary from country to country, but the underlying principle is to prevent foreign interference in a country's political process. In the United States, for example, federal law prohibits foreign nationals and governments from directly contributing to political campaigns at any level, be it federal, state, or local. This includes not only monetary contributions but also indirect involvement, such as through subsidiaries or dark money channels. Despite these laws, there have been concerns about the enforcement of these regulations, particularly regarding the influence of foreign money in elections. Other countries may have different approaches, with some allowing limited foreign participation or having less stringent restrictions. The topic of foreign involvement in political campaigns is a complex and evolving issue, with ongoing debates and efforts to address potential loopholes and ensure the integrity of the democratic process.
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What You'll Learn
- Foreign nationals are prohibited from contributing to US campaigns
- Foreign money can be spent on elections if it is first invested in a US business
- Foreign nationals can volunteer for US campaigns
- Foreign nationals can engage in political activity not connected to elections
- Foreign nationals can underwrite the broadcast of apolitical ads
Foreign nationals are prohibited from contributing to US campaigns
Foreign nationals are prohibited from contributing financially to US election campaigns. This prohibition applies to all federal, state, and local elections, and includes donations to political parties, organizations, and committees. Federal law prohibits foreign nationals from "directly or indirectly" injecting money into US elections. This means that foreign nationals cannot donate to American political campaigns, either directly or through other people or organizations.
The Federal Election Commission (FEC) is responsible for enforcing these laws, and they have the power to impose civil fines on those who violate them. Criminal liability is also a possibility, with cases being referred to the Department of Justice (DOJ) for criminal prosecution if warranted. The FEC's commitment to enforcing these laws has been called into question in recent years, with some arguing that their failure to act has allowed foreign money to influence US elections.
Despite the FEC's stated commitment to prioritizing cases involving the ban on foreign election spending, there have been instances where the FEC has failed to act on clear violations. For example, in 2018, the FEC deadlocked and closed a matter where a US company, American Ethane Co., used money from Russian oligarchs to support federal candidates and political action committees (PACs). This has raised serious concerns about the FEC's ability to protect US elections from foreign interference and influence.
It is important to note that an individual who is not a US citizen but has a "green card," indicating lawful permanent residence in the US, may be eligible to make contributions to political campaigns. However, foreign nationals without legal permanent residence status are prohibited from participating in any way in the financial decision-making processes of any person or organization with regard to election-related activities. This includes any influence or control over the making of contributions, donations, expenditures, or disbursements.
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Foreign money can be spent on elections if it is first invested in a US business
Federal law in the US prohibits foreign nationals from contributing money directly to US political campaigns. The Federal Election Campaign Act makes it illegal for foreign individuals to contribute to any American election – federal, state, or local. This law also applies to American candidates, who are prohibited from receiving, soliciting, or accepting foreign contributions.
Despite these laws, there have been instances where foreign money has influenced US elections. In one case, the Federal Election Commission (FEC) closed a matter where a US company, American Ethane Co., used money from Russian oligarchs to support federal candidates and political action committees (PACs) during the 2018 election cycle. The FEC's decision not to pursue the case was based on the characterization of this foreign money as an "investment" in an American company, rather than a violation of the foreign contribution ban.
This approach, suggesting that foreign money can be spent on elections if it is first "invested" in a US business, has been criticized as legally unsound and increasing the risk of foreign election interference. It is seen as a departure from the FEC's own precedents and a misapplication of federal campaign finance laws.
To address these concerns, the FEC approved a formal investigation into the matter in 2019. The investigation revealed that while American Ethane is a US company with a US citizen as its chief executive, the company was 88% owned by three Russian nationals when it made its political contributions. This investigation highlights the complexities and challenges of enforcing laws against foreign interference in US elections.
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Foreign nationals can volunteer for US campaigns
Foreign nationals are prohibited from contributing, donating, or spending funds in connection with any federal, state, or local election in the United States. The Federal Election Campaign Act (FECA) and the Foreign Agents Registration Act (FARA) prohibit foreign nationals from participating in US political campaigns in any way, whether directly or indirectly. This includes soliciting, receiving, or accepting contributions or donations from them.
However, there is a volunteer exemption in the Act, which allows foreign nationals to volunteer their personal services to a federal candidate or political committee without making a contribution. This exemption applies as long as the foreign national is not compensated by anyone for their services. In other words, they can only engage in uncompensated volunteer work.
The volunteer exemption has been interpreted in several advisory opinions and enforcement cases. For example, in one case, a foreign national was allowed to provide uncompensated musical performance as a volunteer for a federal candidate's campaign as part of a fundraising event. The foreign national did not participate in any campaign decision-making, and the commission found no violation of the Act's foreign national prohibition. In another case, a foreign national was allowed to attend, speak at campaign events, and solicit contributions for a federal candidate.
It is important to note that the definition of "compensation" is vague and has been addressed in several advisory opinions. For example, in one case, a foreign national artist was prohibited from donating artwork in connection with fundraising for a Senate campaign. In another case, a foreign national student was allowed to provide uncompensated volunteer services to a presidential campaign.
Foreign nationals must always be clear and upfront about their status before getting involved in any political campaign activities. While they can volunteer their time and services, they must be careful not to participate in the decision-making processes of the campaign and ensure that their activities are not connected with any election to political office at any level.
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Foreign nationals can engage in political activity not connected to elections
Foreign nationals are prohibited from contributing to political campaigns in the United States. The Federal Election Campaign Act (FECA) makes it illegal for foreign nationals to contribute to a candidate's campaign in any American election – federal, state, or local. This includes direct and indirect contributions, such as donations, expenditures, and disbursements, as well as participation in decision-making processes related to election campaigns. However, foreign nationals can engage in certain political activities that are not connected to specific election campaigns.
The FEC has clarified that foreign nationals can provide uncompensated volunteer services to federal candidates or political committees without making a financial contribution. This includes activities such as developing intellectual property, like trademarks, graphics, and website design, for a political action committee. Foreign nationals are also allowed to attend and speak at campaign events, as well as solicit contributions, as long as they are not compensated for their services.
In addition, foreign nationals can engage in political expression not connected to specific election campaigns. For example, in one case, a foreign national was allowed to underwrite the broadcast of apolitical ads that exposed the alleged political bias of the media. These ads were permitted because they did not mention specific candidates, political parties, or elections. This ruling was affirmed by the Supreme Court, which stated that foreign nationals are not restrained from speaking out about issues or spending money to advocate their views.
It is important to note that the restrictions on foreign national involvement in US politics are broad and subject to interpretation. While there are exceptions, foreign nationals should exercise caution and seek legal counsel before engaging in any political activities in the United States. The consequences for violating these restrictions can be severe, including fines and even imprisonment.
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Foreign nationals can underwrite the broadcast of apolitical ads
In the United States, foreign nationals are prohibited by law from contributing money directly to political campaigns at any level of government. This prohibition, enforced by the Federal Election Commission (FEC), applies to all federal, state, and local elections. American candidates are also prohibited from receiving, soliciting, or accepting foreign contributions.
However, there is an exception to this rule. Foreign nationals are allowed to underwrite the broadcast of apolitical ads, as long as these ads are not deemed to be "election influencing". This exception was established in a Commission advisory opinion (AO 1984-41) concerning the National Conservative Foundation. In this case, the Commission permitted a foreign national to underwrite the broadcast of ads that aimed to expose the alleged political bias of the media. The Commission deemed these ads permissible because they did not mention candidates, political offices, political parties, incumbent federal officeholders, or any past or future elections.
Despite this exception, the FEC has been criticized for its failure to consistently enforce laws banning foreign money in US elections. For example, in 2019, it was discovered that American Ethane Co., a US company with foreign owners, had contributed to federal candidates and political action committees (PACs) during the 2018 election cycle. While the FEC approved a formal investigation, the matter was ultimately closed without any apparent consequences for the company or its owners.
The issue of foreign interference in US elections is a persistent concern, and the internet has provided new avenues for foreign entities to influence public opinion and spread misinformation. While the FEC has jurisdiction over broadcast, cable, and satellite transmissions, the absence of clear regulations for online advertising has been noted as a potential vulnerability in the electoral process.
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Frequently asked questions
Foreign nationals are prohibited from contributing money directly to US political campaigns at the federal, state, or local level.
The Federal Election Campaign Act still considers them a foreign national, and they cannot contribute to any American election campaigns.
Yes, foreign nationals can volunteer their personal services to a federal candidate or federal political committee without making a contribution, as long as they are not compensated.
Foreign nationals can donate to a Social Welfare Organization (SWO), which can then donate to a Super PAC. However, the SWO must not disclose its foreign donors, and the donation must not be earmarked for a specific candidate.
No, in AO 1989-32 (McCarthy), the Commission concluded that a foreign national could not contribute to a ballot measure committee that had coordinated its efforts with a non-federal candidate's re-election campaign.
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