Malcolm Rivera
Foreign interference in elections is a concern for many countries, and the US is no exception. In the 2016 US election, for example, there was significant evidence of Russian interference. Foreign nationals are prohibited from contributing to political campaigns in the US, but there are some exceptions. This includes US subsidiaries of foreign corporations, which can form a Political Action Committee (PAC) called a Separate Segregated Fund (SSF) if they meet strict guidelines on the source of funding and the citizenship of members running the PAC. Lawful permanent residents of the US (green card holders) are also permitted to contribute to political campaigns.
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What You'll Learn
- Foreign nationals are prohibited from contributing to political campaigns
- Lawful permanent residents of the US (green card holders) can contribute
- US subsidiaries of foreign corporations can contribute under certain conditions
- Unincorporated tribal entities are considered persons and subject to contribution laws
- Foreign money can be spent on elections if invested in a US business
Foreign nationals are prohibited from contributing to political campaigns
Foreign nationals who violate this prohibition may be subject to fines and/or imprisonment. Additionally, it is unlawful to help foreign nationals violate this ban or to solicit, receive, or accept contributions or donations from them. This includes providing assistance to foreign nationals making contributions to political campaigns in violation of FECA. Any individual who knowingly and willfully engages in these activities may be subject to legal consequences.
It is important to note that there are exceptions to this prohibition. Foreign nationals who have a "green card" indicating lawful permanent residence in the United States are eligible to make contributions to political campaigns. This is because the term “foreign national” does not include individuals with permanent resident status, and they are therefore not considered foreign persons under the law.
Despite the prohibition, there are ways for foreign nationals to get involved in the political process. Foreign nationals who do not have green cards can provide voluntary non-monetary contributions of services to a political campaign. This is known as the "volunteer" exemption, and it applies as long as the foreign national is not compensated for their services. However, the definition of what constitutes a "volunteer service" is vague, and foreign nationals without green cards should exercise caution and seek legal counsel before participating in any way.
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Lawful permanent residents of the US (green card holders) can contribute
The Federal Election Campaign Act (FECA) prohibits organizations from knowingly soliciting, accepting, or receiving contributions or donations from foreign nationals for campaign finance. However, the only exceptions to this rule are lawful permanent residents of the US (green card holders) and US subsidiaries of foreign corporations.
It is important to note that while green card holders can contribute to political campaigns, they may still be subject to certain restrictions on the amount and type of contributions they can make. For example, they may be limited to contributing only to non-federal campaigns or to campaigns that are not connected to a particular political party. Additionally, green card holders may be required to disclose their permanent resident status when making contributions to ensure compliance with campaign finance laws.
Furthermore, green card holders who contribute to political campaigns should be aware of the potential tax implications of their contributions. Depending on the amount contributed and the specific tax laws in their state of residence, they may be required to pay taxes on their contributions or include them as itemized deductions on their tax returns. It is always advisable to consult with a tax professional to understand the specific tax consequences of any political contributions.
Overall, while lawful permanent residents of the US (green card holders) can contribute to political campaigns, it is important for them to be aware of the relevant laws and regulations that apply to their contributions. By staying informed and compliant with the applicable rules, green card holders can ensure that their contributions are made in a lawful and ethical manner.
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US subsidiaries of foreign corporations can contribute under certain conditions
US law prohibits foreign nationals from contributing to political campaigns. This includes indirect contributions, such as when a foreign national donates to a political party committee or organization, or when they participate in decisions involving election-related activities. However, there are certain conditions under which US subsidiaries of foreign corporations can contribute to political campaigns.
According to FEC.gov, there have been instances of US subsidiaries of foreign corporations contributing to state and local elections. For example, Advisory Opinion (AO) 1985-03 mentions contributions to state campaigns by American subsidiaries of foreign corporations. Additionally, AO 1992-16 addresses non-federal contributions made by the US subsidiary of a foreign parent company. These advisory opinions provide guidance on the complex rules surrounding campaign contributions.
It is important to note that the laws and regulations regarding campaign contributions are subject to change and interpretation. While these advisory opinions offer some insight, they do not replace or alter the law. The Federal Election Campaign Act of 1971, as amended, is a key piece of legislation that governs campaign contributions.
Furthermore, the Supreme Court's Citizens United ruling in 2010 significantly impacted the landscape of campaign contributions. Prior to this ruling, companies were prohibited from spending money directly from corporate treasuries on independent expenditures related to political campaigns. However, after the Citizens United decision, restrictions on independent expenditures by corporations were lifted, allowing them to spend unlimited amounts of money to influence elections.
Despite the Citizens United ruling, states have continued to propose and enact laws to limit political contributions from companies with substantial foreign ownership. These laws aim to prevent foreign-influenced companies from contributing to state and local elections, further complicating the rules surrounding campaign contributions by US subsidiaries of foreign corporations.
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Unincorporated tribal entities are considered persons and subject to contribution laws
In the United States, non-US citizens are prohibited from contributing to political campaigns. This includes foreign nationals, who are also prohibited from donating to inaugural committees, and it is a violation of federal law to knowingly accept such donations. However, an exception is made for individuals who are not US citizens but hold a "green card", indicating lawful permanent residence in the country.
In the context of campaign contributions, an unincorporated tribal entity is considered a "person" under the Federal Election Campaign Act and is therefore subject to the same contribution prohibitions and limitations as other individuals or organizations. This means that unincorporated tribal entities are prohibited from contributing to political campaigns just like any other foreign national or non-US citizen.
The Federal Election Commission (FEC) has determined that unincorporated tribal entities fall under the definition of a "person" for the purposes of campaign finance regulations. This classification is important because it brings unincorporated tribal entities under the jurisdiction of the FEC and subjects them to the same rules and restrictions as other individuals or organizations when it comes to political contributions.
The classification of unincorporated tribal entities as "persons" under the Federal Election Campaign Act has significant implications for tribal sovereignty and political participation. While tribes are sovereign nations with their own laws and governance structures, their political activities within the context of US elections are subject to federal regulations. This includes restrictions on their ability to contribute financially to political campaigns, as well as prohibitions on participating in certain election-related activities.
It is important to note that the regulations surrounding unincorporated tribal entities and their political contributions are complex and can be subject to change. The specific structure of tribal businesses, such as tribally chartered corporations or state-chartered tribal corporations, can also impact their tax status and other legal considerations. Tribes are advised to consult with legal experts to determine the best structure for their specific needs and to ensure compliance with all relevant laws and regulations.
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Foreign money can be spent on elections if invested in a US business
Federal law prohibits foreign nations from "directly or indirectly" injecting money into US elections. However, there have been instances where foreign money has influenced US elections. In one case, the FEC dismissed the use of foreign money by an American company as an "investment" in the company rather than as foreign money used to influence elections. This has raised concerns about the FEC's commitment to protecting elections from foreign interference.
The Federal Election Commission (FEC) has stated that foreign nationals are prohibited from contributing to US political campaigns. This includes direct and indirect donations to political party committees, organizations, and electioneering communications. However, an individual who is not a US citizen but has a "green card" indicating lawful permanent residence in the US is eligible to make contributions.
Despite these prohibitions, there have been concerns about foreign money influencing US elections. In one case, 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. This has led to criticisms of the FEC for not enforcing laws banning foreign money in elections.
To address these concerns, the Ways and Means Committee has advanced legislation to protect election integrity and prohibit foreign money from influencing US politics. The committee's investigation uncovered loopholes that allow foreign nationals to inject money into the American political system through tax-exempt organizations. The approved bills aim to shut down these workarounds, increase transparency, and prohibit tax-exempt entities from funding state and local election organizations.
In conclusion, while foreign money is prohibited from being spent directly on US elections, it can be funnelled through US businesses or tax-exempt organizations to influence politics. This has raised concerns about foreign interference in US elections and the need for stronger enforcement and legislation to protect election integrity.
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Frequently asked questions
Non-US citizens are prohibited from contributing to political campaigns in the US. This includes indirect contributions, such as when the funds are first funnelled through a US company. The only exceptions are lawful permanent residents of the US (green card holders) and US subsidiaries of foreign corporations.
Contributions include donations of money or other things of value, expenditures, independent expenditures, or disbursements for election communications and political campaigns.
A foreign national is defined as a foreign government or political party, or an association or corporation organised under foreign law or based in a foreign country.
Violating these laws can result in enforcement actions and criminal prosecutions.
In 2022, it was discovered that American Ethane Co., a US company, used money from Russian oligarchs to support federal candidates and PACs during the 2018 election cycle. Despite the evidence, the FEC closed the matter without taking any action.
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