Jonah Patel
Foreign interference in elections is a serious issue that threatens the integrity of a nation's democracy. In recent years, there has been a heightened focus on preventing foreign influence in political campaigns, particularly in light of well-publicized incidents of interference in the 2016 US election. This has brought to the fore the question of whether it is legal for foreign entities to donate to political campaigns. Federal laws in the US explicitly prohibit foreign nationals from making contributions or donations in connection with any federal, state, or local elections. Despite these laws, concerns have been raised about the failure of regulatory agencies to effectively enforce these bans and protect elections from foreign interference. This issue has far-reaching implications and has sparked debates about the role of foreign money in elections and the potential ramifications for national security and democratic values.
Is it legal to donate to foreign political campaigns?
| Characteristics | Values |
|---|---|
| Federal Law | Prohibits foreign nationals from making contributions or donations in connection with any federal, state, or local elections |
| FEC | Has allowed foreign money to influence US elections, characterizing it as an "investment" in an American company |
| Federal Election Campaign Act | Defines an unincorporated tribal entity as a "person," making them subject to contribution prohibitions and limitations |
| Charitable Organizations | Prohibited from making contributions in connection with federal elections and face additional restrictions under the Internal Revenue Code |
| Foreign Nationals | Prohibited from making contributions, donations, expenditures, independent expenditures, or disbursements in connection with any federal, state, or local election |
| Foreign Interference | Remains a threat to US elections, with Russian interference in the 2016 election as an example |
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What You'll Learn
Federal law prohibits foreign donations to US elections
Federal law in the United States prohibits foreign nationals from contributing to American political campaigns at any level, be it federal, state, or local elections. This law covers both direct and indirect contributions and donations of money, as well as any expenditures, independent expenditures, or disbursements for electioneering communications. The law also prohibits donations to a committee of a political party.
The Federal Election Commission (FEC) is tasked with administering and enforcing federal campaign finance laws, including the ban on foreign donations. However, critics argue that the FEC has repeatedly failed to enforce this ban, allowing foreign money to influence American elections. For instance, in the 2016 election, Russian interference efforts were evident, and this prompted inquiries by Congress and criminal prosecutions by the Department of Justice.
The issue of foreign interference in US elections is not new. Since the nation's founding, leaders have warned against it. Federal law reflects this concern, aiming to protect American democracy from foreign influence. The law prohibits any person or entity from soliciting, accepting, or receiving contributions or donations from foreign nationals in connection with any election. This includes contributions made through intermediaries or "investments" in American companies.
Despite the clear provisions in federal law, there have been concerns about the FEC's commitment to enforcing the ban on foreign donations. The FEC's failure to act on these concerns raises questions about the integrity of US elections and the potential for foreign interference. It is crucial for the FEC to prioritize enforcing the ban on foreign donations to uphold the integrity of American democracy and ensure that foreign interests do not influence the election process.
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FEC's failure to enforce laws banning foreign money
Federal law in the US prohibits foreign nationals from directly or indirectly contributing money to any federal, state, or local elections. This includes expenditures, independent expenditures, and disbursements for electioneering communications. The Federal Election Commission (FEC) is tasked with enforcing these laws. However, the FEC has been criticized for its failure to adequately enforce these laws, allowing foreign money to influence American elections.
The FEC's failure to enforce the laws banning foreign money in US elections has raised serious concerns about the agency's commitment to protecting the integrity of the election process. In one notable instance, the FEC deadlocked and closed a matter where a US company, American Ethane Co., used funds from Russian oligarchs to support federal candidates and political action committees (PACs) during the 2018 election cycle. The investigation revealed that American Ethane was 88% owned by three Russian nationals and had no domestically generated income, yet the FEC failed to take any action.
This is not an isolated incident. The FEC has a history of deadlock and inaction on enforcement matters, often refusing to investigate alleged violations even when presented with overwhelming evidence. Between 2012 and 2019, a period of increasing outside spending on elections, the FEC frequently failed to address complaints and enforce the law, allowing foreign interference in US elections to persist.
The dysfunction within the FEC has undermined voters' right to know who is funding election campaigns and has contributed to a lack of transparency and accountability in the political system. The agency's inability to effectively enforce campaign finance laws has allowed special interests to exert undue influence through secret spending, also known as "dark money." This has resulted in a proliferation of undisclosed contributions, totaling over $1 billion in the 2020 election cycle and $615 million in the 2022 midterms.
The FEC's failure to adequately enforce the laws banning foreign money in US elections has increased the risk of foreign interference and undermined the integrity of the democratic process. To address this issue, systemic reforms are needed to strengthen the FEC and ensure the effective enforcement of campaign finance laws.
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Foreign interference in US elections
Federal law in the US prohibits foreign nationals from contributing money directly or indirectly to any federal, state, or local elections. This includes any expenditures, independent expenditures, or disbursements for electioneering communications. These provisions were designed to prevent foreign influence in US elections.
Despite these laws, foreign interference in US elections remains a threat. The Federal Election Commission (FEC), the regulatory agency charged with administering and enforcing federal campaign finance laws, has been criticized for its failure to enforce the ban on foreign money in US elections. For example, in the 2016 election, Russian efforts to manipulate American voters were evident, prompting formal inquiries and hearings by Congress and criminal prosecutions by the Department of Justice.
The refusal of some Commissioners to follow the FEC's precedent raises concerns about the agency's commitment to protecting US elections from foreign interference. This issue is further exacerbated by the characterization of foreign money as an "investment" in an American company, allowing it to be spent on elections.
Historically, the US has also been accused of interfering in foreign elections and regime changes. Since the 19th century, the US government has overtly and covertly participated in the replacement of foreign governments worldwide, including in Latin America, the Caribbean, and the southwest Pacific. More recently, in 2021, investigations revealed that funds linked to the Venezuelan government were allegedly funneled into Ecuador's presidential campaign, sparking accusations of foreign interference.
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Foreign nationals influencing US elections
Federal election law prohibits foreign nationals from directly or indirectly contributing or donating money in connection with any federal, state, or local elections, as well as any independent expenditures or disbursements for electioneering communications. This includes any exchange of value. Despite this, foreign interference in US elections remains a threat, with the Federal Election Commission (FEC) failing to enforce laws banning foreign money in elections.
Foreign electoral interventions (FEI) are attempts by a government to influence the elections of another country. Common methods include backing a preferred candidate, harming another candidate's electoral chances, elevating disruptive candidates, or exacerbating polarization through misinformation. The First Amendment allows some protection for foreign nationals to influence public opinion, but federal law prohibits political contributions to candidates by foreign nationals, as well as candidates' acceptance of anything of value from them.
There have been several instances of foreign interference in US elections. In 2016, Russia attempted to manipulate American voters and help elect their preferred candidates, leading to formal inquiries and hearings by Congress. National Security Adviser H.R. McMaster expressed concern about Russia's use of "sophisticated campaigns of subversion, disinformation, and propaganda" to polarize American society. Additionally, in 1996, there were hearings on Chinese influence in Bill Clinton's reelection campaign.
To address foreign influence, the FEC has issued advisories reiterating the prohibition on in-kind and direct political donations and clarifying the definition of a "foreign national." However, the FEC's refusal to follow its own precedents has raised concerns about its commitment to protecting elections from foreign interference.
Recent polls show that Americans are increasingly worried about the impact of fake news and AI-generated content on the 2024 elections. Influence operations are not limited to foreign entities but also include domestic organizations and actors. Social media platforms have been criticized for not doing enough to moderate content, and voters are encouraged to exercise caution when evaluating information from partisan or foreign sources.
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US democracy vulnerable to foreign money
US federal law prohibits foreign nationals from contributing money directly or indirectly in connection with any federal, state, or local elections. However, foreign interference in US elections remains a significant concern, with the country's democracy vulnerable to the influence of foreign money.
The Federal Election Commission (FEC), charged with enforcing federal campaign finance laws, has been criticised for its failure to uphold these laws and protect US elections from foreign influence. For instance, in 2021, the FEC ruled that foreign nationals could donate money to the US, characterising this as an "investment" in an American company rather than a violation of the foreign contribution ban. This ruling has raised concerns about increasing the risk of foreign election interference.
Foreign governments, such as Russia and China, have been accused of exploiting loopholes to anonymously spend unlimited amounts of money to influence American elections. They can do so by passing funds through corporations or advocacy groups, creating shell corporations, or investing in American companies with foreign shareholders. The lack of enforcement and poor election administration by certain states have further contributed to the vulnerability of the US democratic process.
Additionally, the issue of non-citizen voting has been highlighted, with some states, like Maryland, allowing non-citizens to vote in local elections, and in practice, enabling non-citizen voting in federal elections as well. While federal law prohibits this, the lack of enforcement mechanisms and instances of poor election administration have resulted in non-citizens registering to vote and influencing election outcomes.
To address these vulnerabilities, stronger disclosure laws and stricter enforcement of existing regulations are necessary. The 'Get Foreign Money Out of U.S. Elections Act', introduced in 2017, aims to close loopholes that allow foreign-owned corporations to funnel money into US elections anonymously. Such efforts are crucial for safeguarding the integrity of the US democratic system and preventing foreign interference.
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Frequently asked questions
No, it is not legal for foreign nationals to donate to American political campaigns. Federal law prohibits foreign nationals from directly or indirectly contributing money to any federal, state, or local elections.
This law is intended to prevent foreign influence in American elections and protect American democracy.
No, there have been instances where foreign money has influenced American elections, notably in 2016, when Russian interference was evident.
Foreign money can enter American politics through various avenues, including donations made to American companies, which are then used for political spending, or through unincorporated tribal entities.
Violating this law can result in criminal prosecutions by the Department of Justice and formal inquiries by Congress. The Federal Election Commission (FEC) is responsible for enforcing these laws, but they have been criticized for their failure to do so effectively.
