Malcolm Rivera
Federal contractors are prohibited from making political contributions to campaigns. This ban was put in place to prevent influence-peddling and corruption in the contracting process. However, employees of federal government contractors can contribute from their personal funds, allowing contributions from their personal accounts. This is a complex area, and the Federal Election Commission has been criticised for its inaction on federal contractors' contributions to politically active nonprofit groups.
| Characteristics | Values |
|---|---|
| Federal contractors' political donations | Secret and mostly kept unknown to the FEC |
| Federal contractors' political donations legality | Prohibited by federal law |
| Who can donate? | Employees of federal contractors from their personal funds |
| Who cannot donate? | Federal contractors, corporations, foreign nationals |
| Exceptions | N/A |
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What You'll Learn
- Federal contractors can donate to political campaigns from their personal accounts
- Federal employees can attend political fundraisers
- Federal employees are subject to the Hatch Act, which restricts political activity at work
- Federal contractors can donate to Super PACs
- Federal contractors cannot donate to federal candidates or political parties
Federal contractors can donate to political campaigns from their personal accounts
Federal contractors are prohibited from making political contributions to any political party, committee, or candidate for federal office. This ban has been in place for over 75 years and applies to both direct and indirect contributions. The Federal Election Commission (FEC) is responsible for enforcing this ban, which aims to prevent influence-peddling and corruption in the contracting process.
However, employees of federal government contractors are allowed to contribute from their personal accounts. This means that individuals can make contributions to party committees, subject to certain limits. This is an important distinction, as it allows individuals who work for federal contractors to participate in the political process and support candidates or parties of their choice, while still maintaining the integrity of the contracting process by prohibiting direct contributions from the contracting organizations themselves.
Despite the ban, some federal contractors have been known to violate the rules and make illegal contributions to super PACs. The Campaign Legal Center (CLC) has identified several cases where federal contractors contributed to super PACs, such as Marathon Petroleum Company's donations to conservative super PACs while holding a contract with the Department of Defense. In such cases, the FEC has the authority to impose fines, as seen in the cases of Ring Power Corporation and Suffolk Construction Company, which were fined for making illegal contributions to super PACs.
The issue of secret contributions further complicates the matter. Some federal contractors have been known to conduct their political operations through nonprofit groups that are not required to disclose their donors, making it difficult for the FEC to track and enforce the ban. This has led to calls for mandatory disclosure of political spending, with President Biden expressing support for such legislation during his presidential campaign.
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Federal employees can attend political fundraisers
Federal employees are subject to the Hatch Act, which restricts their political activity while at work. However, the law still allows them to do campaign-related things, which vary by position and/or agency. For instance, all federal employees can attend political fundraisers, and those in the "less restricted" category can speak at them. This category includes most career employees in the executive branch. On the other hand, employees in the "further restricted" category include those from federal investigative and enforcement agencies, such as the Justice, State, Homeland Security, and Defense departments.
The Hatch Act prohibits employees from hosting or serving as a point of contact for a fundraiser. However, they can help organize it by stuffing envelopes, setting up tables, selecting the menu, or hiring entertainment. Additionally, a spouse can host a political fundraiser as the Hatch Act does not apply to them. Less restricted employees can assist their spouses in a "limited capacity," but further restricted employees may not.
Federal employees should be mindful of other restrictions under the Hatch Act. For example, they cannot express political opinions while on duty, in any federal room or building, while wearing a uniform or official insignia, or using any federally-owned or leased vehicle. They are also prohibited from using their official authority or influence to interfere with or affect the election results. This includes not using their official title or position while engaged in political activity and not inviting subordinate employees to political events or suggesting they attend or undertake any partisan political activity.
In terms of donations, federal contractors are prohibited from making contributions or expenditures to any political party, committee, or candidate for federal office. However, employees of federal government contractors can contribute from their personal funds, allowing contributions from their personal accounts.
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Federal employees are subject to the Hatch Act, which restricts political activity at work
Federal employees are subject to the Hatch Act, which restricts their involvement in partisan political activity. Partisan political activity refers to any activity that seeks to influence the success or failure of a partisan candidate, political party, or partisan political group. Violating the Hatch Act may lead to disciplinary action, including termination from federal employment.
The Hatch Act applies to three classes of employees, with varying levels of restriction. The most restricted group includes Career Senior Executive Service (SES), Administrative Law Judges (ALJ), Administrative Appeals Judges (AAJ), Contract Appeals Board Members (CABM), and employees of specific intelligence or enforcement agencies or offices (excluding PAS). Presidentially appointed, Senate-confirmed personnel (PAS) have more flexibility regarding when and where they can engage in political activity due to their 24-hour duty status. However, their participation in partisan political activity must be purely personal and not official.
Federal employees covered by the Hatch Act must refrain from certain activities. They cannot use their official authority or influence to impact election outcomes. This includes using official titles while participating in political activity, coercing anyone to participate in political activity, or soliciting, accepting, or receiving volunteer services from subordinates for political purposes. Additionally, federal employees cannot engage in partisan political activity while on duty, in government rooms or buildings, or while wearing a government uniform, badge, or insignia. They are also prohibited from using government-owned or -leased vehicles for partisan political purposes.
Despite these restrictions, federal employees can express their political views in certain ways. For example, they are allowed to display up to two partisan political bumper stickers on their privately owned vehicles parked in federal parking lots, as long as the vehicle does not resemble a campaign mobile. However, if the private vehicle is used for official purposes, the bumper stickers must be covered during those times. Federal employees are advised to consult with the Departmental Ethics Office before engaging in any partisan political activity to ensure compliance with the Hatch Act.
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Federal contractors can donate to Super PACs
Federal contractors are prohibited from making contributions to federal candidates and political action committees (PACs). However, there has been debate since the Supreme Court ruling in Citizens United about whether government contractors have the same constitutional right as other corporations to make independent expenditures or contribute to Super PACs.
Super PACs are political committees that make only independent expenditures and are permitted to solicit and accept unlimited contributions from individuals, corporations, and labor organizations. They are not allowed to accept contributions from foreign nationals, federal contractors, national banks, or federally chartered corporations.
In 2017, the Federal Election Commission (FEC) fined a federal contractor for making $200,000 in contributions to a Super PAC that supported a candidate in the 2016 presidential election. This was the first time the FEC had taken action against a government contractor for contributing to a Super PAC. The Boston-based construction company made two $100,000 contributions to a pro-Hillary Clinton Super PAC, which were later refunded. The FEC found no evidence that the Super PAC had knowingly solicited the donations, and the fine did not settle the constitutional question of whether federal contractors can donate to Super PACs.
While federal contractors are prohibited from making direct contributions to political campaigns, employees of federal government contractors can contribute from their personal funds, allowing donations from their personal accounts. This distinction between the professional and personal spheres can be nuanced, and it is important for federal contractors to have sound political law and compliance policies in place to avoid legal risks.
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Federal contractors cannot donate to federal candidates or political parties
Federal contractors are prohibited from making contributions or expenditures to any political party, committee, or candidate for federal office. This includes any person or group seeking to influence elections, such as through favours in exchange for disclosed campaign contributions or undisclosed payments. The Federal Election Commission (FEC) states that federal government contractors are barred from making such contributions to any political party, committee, or candidate for federal office.
The FEC's inaction on federal contractors' contributions to politically active nonprofit groups may be due to the fact that these contributions are kept secret, and the FEC is not made aware of them. In the past, contractors have made illegal contributions to members of Congress, and there have been scandals involving government contractors and political contributions.
However, employees of federal government contractors can contribute from their personal funds, allowing contributions from their personal accounts. This is a general guideline, and specific situations may vary, so it is important to consult an attorney for specific legal advice.
Additionally, federal employees, who are different from federal contractors, are allowed to make campaign contributions under the Hatch Act. They can also attend political fundraisers and speak at less restricted events.
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Frequently asked questions
No, federal contractors are prohibited from making political contributions to any political party, committee, or candidate for federal office. This ban was put in place to prevent influence-peddling and corruption in the contracting process.
Some federal contractors have been found to donate to political campaigns through nonprofit groups that do not have to reveal their donors, also known as "dark money".
Most federal employees can make donations to campaigns as long as they don't solicit or receive them. However, some federal employees fall under the "'further restricted' category, which includes employees at investigative and enforcement agencies, and are prohibited from making any political contributions.
