Challenging the FEC’s Delay in Enforcing the Law Against the GEO Group — CLC v. FEC (GEO Group Contractor Contribution)

At a Glance

This case is a challenge to the FEC’s delay in enforcing federal campaign finance law against GEO Group, one of America’s largest private prison companies, which illegally made $225,000 in contributions to a super PAC supporting then-candidate Donald Trump in 2016.

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Active
Updated
Issues
Campaign Finance
About This Case/Action

In August 2016, the Obama administration announced that it would be phasing out federal private prison contracts like those held by GEO. The announcement sent GEO’s stocks tumbling. The next day, GEO contributed $100,000 to the pro-Trump super PAC Rebuilding America Now, and it made another $125,000 contribution just one week before the election. At the time, Mike Pence was telling donors that giving to the super PAC was “one of the best ways to stop Hillary Clinton and help elect Donald Trump our next president!” After Trump won, GEO gave $250,000 to the Trump Inaugural Committee.

GEO did not have to wait long to see its investment start to pay off. On Feb. 23, 2017, during his second full week on the job, Attorney General Jeff Sessions issued a one-paragraph memo reversing the Obama administration’s private prison phase-out, instead ordering officials to continue using for-profit facilities for federal inmates.

In April 2017, the Trump Administration awarded GEO a $110 million, 10-year federal contract to build and administer a new 1,000-bed immigration detention center in Texas. GEO expects $44 million a year in revenue from the facility. GEO also has enjoyed a soaring stock price; its stock shot up 21 percent the day after Trump won, and has continued to grow since then.

CLC filed an FEC complaint, which alleges that the contributions — made through a wholly-owned subsidiary, GEO Corrections Holdings, Inc. — violated the ban on federal contractors giving money in federal elections. This law has been in place for 75 years to protect the integrity of the contracting process.

CLC filed this case against the FEC on January 10, 2018 in the U.S. District Court for the District of Columbia after waiting more than a year for the FEC to resolve this complaint. CLC hopes the lawsuit will compel the FEC to act. 

There is recent precedent for the FEC taking action against government contractors for giving to super PACs. In September 2017, the FEC responded to a CLC complaint and found that the Massachusetts-based Suffolk Construction Company violated campaign finance law by making two $100,000 donations to a Hillary Clinton-affiliated super PAC in 2015. That company agreed to pay a $34,000 fine.

The reason that federal contractors have been barred from making contributions for the past 75 years is to prevent pay-to-play in the contracting process. Public officials are supposed to make contracting decisions based on what is best for the public, not based on who spent the most money getting them elected. GEO Group’s illegal donations have the appearance of a pay-to-play: since Trump was elected with GEO’s backing, the company has reaped enormous political and financial benefits, including a new $110 million taxpayer-funded contract.

The FEC is critical to the enforcement of the contractor contribution ban and in preventing pay-to-play politics. It is incumbent upon the FEC to enforce the longstanding federal contribution ban and take action against GEO Group to deter future violations. Without the contractor ban, the government contracting process becomes an obvious way for officials to reward friends and political donors.

In a separate but related case, CLC filed a lawsuit on June 15, 2017 seeking to compel the Department of Justice (DOJ) to disclose requested records that would gather information about how DOJ reached its conclusion to rescind official policy to phase-out the use of private prisons in the administration’s contracting process. Almost nine months later, the public still has not seen any documents that show how DOJ reached its decision to change course on its private prison policy.

Plaintiffs

Campaign Legal Center

Defendant

Federal Election Commission

Associated Cases & Actions

Exposing Pay-to-Play Scheme Enacted by the GEO Group

Doe v. FEC

At a Glance

Doe v. FEC is a case about a mystery donor's attempt to maintain secrecy around a $1.7 million donation to a super PAC whose spending was meant to influence the 2012 election. 

Status
Closed
Updated
Issues
Campaign Finance
About This Case/Action

Doe v. FEC is a case about a mystery donor's attempt to maintain secrecy around a $1.7 million donation to a super PAC whose spending was meant to influence the 2012 election. The nonprofit group Citizens for Reponsibility and Ethics in Washington (CREW) brought the original complaint against the super PAC, called Now or Never PAC, in February 2015 alleging that an unknown person made a contribution to Now or Never, violating the prohibition on contributions made in the name of another person.



CLC filed a motion to intervene in support of CREW's quest for transparency on January 3, 2018.



On March 23, 2018, the U.S. District Court issued an opinion that upheld the right of the Federal Election Commission to uphold its own disclosure policy and give the public the right to know the names of donors.



Importance of Case



Disclosure is critical because voters deserve to know the names of donors that are spending millions of dollars to influence their vote. Transparency is the foundation of an open democracy. Under the Federal Election Campaign Act, the FEC must be permitted to keep extensive recordkeeping and disclosure requirements of campaign contributions in order to remedy pay-to-play politics.

Plaintiffs

John Doe

Defendant

Federal Election Commission

Reconciliation Bill Passes the Senate Without Two Dangerous Provisions: Campaign Legal Center Reacts

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Washington, DC — Moments ago, the U.S. Senate passed the reconciliation bill (officially the “One Big Beautiful Bill Act,”), which now goes back to the House of Representatives for final approval. Although the overall legislation is not yet law, Campaign Legal Center helped to secure a win for democratic safeguards by successfully pushing the Senate to remove two dangerous provisions from the bill before the chamber’s final vote.  

One of these provisions would have undermined judicial independence by making it harder for courts to enforce the law and protect constitutional rights. The other sought to block states from regulating the use of artificial intelligence (AI), including in elections, despite bipartisan efforts across the country to address this growing threat. 

Thanks to the advocacy of Campaign Legal Center and many of our partners, both provisions were resoundingly defeated and removed from the final legislation.  

Trevor Potter, founder and president of Campaign Legal Center and former Republican chairman of the Federal Election Commission, issued the following statement:   

“Since debate began in the House on the ‘One Big Beautiful Bill Act,’ my colleagues at Campaign Legal Center, and many others, have been working tirelessly against two proposed provisions that would have threatened our democracy. 

“Today, as the Senate passes the bill, I am relieved that both of these provisions have been successfully removed. This is evidence that the advocacy of those who are dedicated to the preservation of American democracy remains a worthy fight. 

“The first of these provisions would have limited the power of federal courts to hold government officials accountable to the Constitution and our laws. This alarming proposal could have allowed government officials to violate court orders with impunity, while helping the Trump administration evade nearly 200 judicial rulings that have already halted its activities. 

“The second provision would have compelled states to give up their right to regulate artificial intelligence (AI), including laws governing AI's use in our elections. More than 20 states, controlled by Republicans and Democrats alike, have already enacted such rules, which are meant to solve real challenges for our democracy. This provision was stripped from the bill by an overwhelming vote by the Senate this morning. 

“Through our advocacy, CLC is proud to have helped lead the fight to defeat these dangerous provisions. We vow to continue opposing these policies if they ever reappear in future bills, as well as similar threats to our democracy moving forward.”

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The nonpartisan Campaign Legal Center advances democracy through law. We safeguard the freedom to vote, defend voters’ right to know who is spending money to influence elections, and work to ensure public trust in our elected officials.

Learn more about CLC. Don't miss out on our latest resources: Subscribe to President Trevor Potter's newsletter on LinkedIn or email, tune in to the latest season of our award-winning podcast, Democracy Decoded, and join our livestreamed events. 

Campaign Legal Center Responds to SCOTUS Ruling Limiting Court Restraints on Unconstitutional Presidential Actions

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Washington, DC — The U.S. Supreme Court today ruled in Trump v. CASA that the attempts by several lower courts to halt nationwide enforcement of President Trump’s birthright citizenship executive order were too broad. In denying the district courts’ nationwide injunction authority, the Supreme Court limits the power of the judiciary in favor of executive power — at the expense of Americans’ basic rights. 

In doing so, the Court overturned decades of precedent, expanding the power of the presidency at a time when we, as a nation, are veering dangerously close to authoritarianism.

Trevor Potter, president of Campaign Legal Center and former Republican chairman of the Federal Election Commission, released the following statement: 

“The Supreme Court’s ruling means that the judiciary will now have fewer tools to protect the constitutional rights of Americans. 

“When constitutional rights are at issue, these injunctions by district courts historically have promoted uniformity in the law and ensured that rights can be protected across the country until a final decision is reached on the merits. 

“With this ruling, the Supreme Court has stifled lower courts from stepping in to protect all Americans when the Trump administration, or any future presidential administration, engages in unconstitutional and lawless efforts. This is a huge shift in the balance of power and should put all Americans on notice that their day-to-day rights are now at stake.

“However, while the Court has significantly narrowed future pathways for relief, it has not closed them. There are indeed still pathways available via nationwide class action lawsuits and other legal remedies. Lower courts must continue the crucial work of holding the president accountable for unlawful conduct when these cases reach their courtrooms in the future.” 

Background: 

The birthright citizenship provision of the United States Constitution is the cornerstone of our democracy because it ensures that all Americans, regardless of who our parents are, have equal rights under the law and the opportunity to make our voices heard. It cannot be ended by any politician, including the president. 

Campaign Legal Center submitted several briefs on behalf of the Secure Families Initiative (SFI) urging the lower courts to strike down the president’s unconstitutional attempt to end birthright citizenship via executive order. 

The Supreme Court only ruled on the injunction authority question and did not address the merits of the president’s attempt to end birthright citizenship. Every court addressing the merits of that order has found it clearly unlawful. Campaign Legal Center will continue our efforts to ensure birthright citizenship is upheld as the law of the land. 

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Campaign Legal Center is a nonpartisan legal organization dedicated to solving the wide range of challenges facing American democracy. 

Founded in 2002, CLC fights for every American’s freedom to vote and participate meaningfully in the democratic process. 

Learn more about CLC. Don't miss out on our latest resources: Subscribe to President Trevor Potter's newsletter on LinkedIn or email, tune in to the latest season of our award-winning podcast, Democracy Decoded, and join our livestreamed events.

Issues
Voting and Elections

Victory: CLC Complaint Prompts District Court to Hold the FEC Accountable

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Washington, DC — Today, a district court has ruled that the Federal Election Commission (FEC), the only agency tasked with enforcing federal campaign finance law, must be held accountable to its mission of fostering transparency. This decision comes after the FEC’s dismissal of a February 2024 complaint filed by Campaign Legal Center alleging campaign finance reporting violations by Last Best Place (LBP) PAC. 

Erin Chlopak, senior director for campaign finance at Campaign Legal Center, released the following statement: 

“In a win for transparency, the FEC has now been told that it must do its job and cannot refuse to enforce the law without a meaningful explanation. After the FEC dismissed Campaign Legal Center’s complaint against Last Best Place PAC for alleged campaign finance reporting violations, CLC sued, challenging the FEC’s flawed and inadequate explanation. In an opinion released today, the court agreed, rejecting the FEC’s dismissal decision as 'arbitrary and capricious' and 'too conclusory to survive' judicial review. 

“When the FEC refuses to enforce the laws that ensure transparency around election ads, voters’ ability to understand the campaign messaging they are bombarded with is compromised. And when the FEC attempts to shirk its enforcement duties without explanation, it is imperative that courts take action to hold the agency accountable. Campaign Legal Center welcomes the court’s decision, which demands that the FEC explain itself when it issues decisions declining to enforce our campaign finance laws.” 

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Campaign Legal Center is a nonpartisan legal organization dedicated to solving the wide range of challenges facing American democracy. Founded in 2002, CLC fights for every American’s freedom to vote and participate meaningfully in the democratic process. 

Learn more about CLC. Don't miss out on our latest resources: Subscribe to President Trevor Potter's newsletter on LinkedIn or email, tune in to the latest season of our award-winning podcast, Democracy Decoded, and join our livestreamed events.

Issues
Campaign Finance
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