CLC and Issue One Send Letter to FEC Chair: Get to Work on Dark Money

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WASHINGTON, DC - Campaign Legal Center (CLC) and Issue One today sent a letter to recently confirmed Federal Election Commissioner (FEC) Chair Trey Trainor urging him to take action on the flood of secret or “dark” money flooding U.S. elections, drowning out the voices of everyday Americans. The letter is a response to a recent interview with Trainor where he dismissed the threat posed by “dark money” and downplayed the effects of secret money flooding our elections. 
 

CLC President Trevor Potter, who is a Republican former FEC commissioner, said: “The problems associated with large amounts of secret spending in our elections is a nonpartisan one. When wealthy special interests (foreign or otherwise) dump money into campaign coffers, voters have a right to know their origins and deserve a campaign finance watchdog looking out for their interests. There is a reason 80% of voters of all political stripes are concerned about dark money — its interference in our elections affects our ability to fully participate in the democratic process and our ability to self-govern.” 
 

Issue One Executive Director Meredith McGehee added: “It’s a dereliction of duty for the FEC to sit on its hands when it comes to dark money. The FEC has not only the power but a responsibility to shine a light on those who are trying to anonymously influence our elections. Increasingly, both Democrats and Republicans are using secret money, and Americans should not be left in the dark about who is trying to sway their votes.” 
 

The letter stated: “The FEC has a vital role and responsibility — indeed, a statutory mandate — to address secret election spending and to protect voters’ right to know which wealthy special interests are secretly spending millions of dollars to influence our vote and our government. This mandate was upheld by the Supreme Court in Citizens United v. FEC in an opinion joined by eight of nine justices then on the court.” 
 

The letter continued: “Once the Commission’s quorum is again restored, the agency can and should proceed with a rulemaking that will protect voters’ right to know the sources of funding for independent expenditures, and the agency should additionally proceed with a rulemaking to guarantee the fulsome disclosure of donors who fund electioneering communications. Moreover, the Commission should commit itself to diligently enforcing FECA’s transparency requirements."

Created in the wake of the Watergate scandals, voters and taxpayers deserve more from a watchdog agency. Corruption and the outsize influence of wealthy special interests continue to insert themselves in obvious and covert ways into our political process — we need a cop on the beat.
 

Read the full letter here

FEC Commissioner's Resignation Leaves Sole Agency Dedicated for Integrity of Elections Without Watchdog Authority

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WASHINGTON – Today, Republican Federal Election Commission (FEC) commissioner Caroline Hunter submitted a letter of resignation. She’s expected to leave the agency as of July 3, 2020 with only three sitting commissioners. The law requires a quorum of at least four commissioners before the agency can conduct any official enforcement or regulatory action. The FEC is the only government agency dedicated to overseeing the integrity of our election campaigns. The FEC enforces and administers federal campaign finance laws including the disclosure of funds raised and spent to influence federal elections, the restrictions on money donated and spent to influence federal elections, and the public financing of presidential campaigns. Hunter’s resignation with only three days notice comes just after Senate Majority leader Mitch McConnell broke precedent and forced through the nomination of Republican Chair Trey Trainor without a new democratic commissioner, while claiming it was vital for the FEC to have a quorum this election year.

Trevor Potter, president of the Campaign Legal Center and a former Republican Chair of the FEC released the following statement:

“A huge majority of voters are concerned about the enforcement of our campaign finance laws, and Hunter's resignation leaves their democratic elections with significantly less government oversight. Elections in 2016 and 2018 saw campaign finance violations including: illegal foreign spending, a lack of transparency around the sources of millions in election spending, and candidates working illegally with super PACs. Americans understand that the campaign finance system correlates directly to their families’ quality of life. The corruption of our democracy by unprecedented amounts of money in our elections from wealthy special interests diminishes the voices of average citizens. A strong and functional FEC is vital to protecting our democracy, fighting corruption, and holding politicians accountable for the campaign money they receive.”

CLC v. FEC (Delay Suit--45Committee)

At a Glance

CLC sued the Federal Election Commission for its failure to enforce transparency laws, allowing large, anonymous donors to funnel millions of dollars into political activity through 45Committee, a dark money group. The FEC’s failure to act threatens transparency and public trust in our elections.

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Active
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About This Case/Action

In August 2018, Campaign Legal Center (CLC) filed an administrative complaint with the Federal Election Commission (FEC) demonstrating that a dark money group called 45Committee, Inc. violated federal campaign finance law by failing to register as a political committee and disclose its donors. After waiting more than 575 days for the FEC to act, CLC filed suit against the agency in late March 2020 for failing to enforce federal transparency laws.

45Committee spent over $22 million political ads during the 2016 and 2018 elections, the vast majority of which sought to support of Donald Trump’s presidential campaign. Press reports reveal that 45Committee was formed precisely to provide certain large donors the means to anonymously support then-candidate Trump without having to face public scrutiny. By failing to register as a PAC, 45Committee was able to avoid disclosing its donors, along with other information required by federal law. 45Committee has successfully kept the American public in the dark. It is the FEC’s job to prevent such attempts to circumvent public accountability.

The Commission’s failure to act on CLC’s complaint against 45Committee is part of a long pattern of dysfunction and delay. The FEC lacked a quorum for six months during the past year, and currently has a backlog of over 300 pending cases. The FEC’s inaction allows dark money groups like 45Committee to violate campaign finance law without facing repercussion.

What's at Stake?

 

Transparency around who is spending money to support or to oppose candidates for federal office is a cornerstone of our democracy. Under federal law, organizations that exist predominantly to engage in political activity—including spending money on political advertising to support their preferred candidate—are required to register as political committees (PACs) with the FEC and report their donors, along with other information about their financial resources.

In the administrative complaint filed with the FEC in 2018, CLC demonstrated that 45Committee’s major purpose—as evidenced by its name, political spending in 2016, fundraising appeals, and public statements—was plainly to support the election of its preferred candidates—namely Donald Trump. Nonetheless, 45Committee never registered as a political committee and never filed the required reports disclosing its contributors, expenditures, or debts and obligations.

By allowing organizations like 45Committee to evade federal law and leave the public in the dark about who is spending money to influence elections without repercussion, the FEC undermines public trust in our elections. The lack of enforcement and lack of any consequence for illegal behavior encourages 45Committee and others who seek to emulate 45Committee’s activities to continue to violate campaign finance law.

In order to ensure transparency and accountability in federal elections, violations like those uncovered by CLC here must be investigated and acted upon to ensure the public knows which interests are supporting or opposing candidates in the 2020 election. 

Plaintiffs

Campaign Legal Center

Defendant

Federal Election Commission, 45Committee