Washington, D.C. — In late July, Campaign Legal Center (CLC) joined Public Citizen and Common Cause in submitting an amicus brief to the U.S. District Court for the Eastern District of Texas in response to a renewed attempt by the Internal Revenue Service (IRS) to unilaterally overrule the Johnson Amendment. 

This long-standing provision of the tax code says 501(c)(3) charities cannot intervene in political elections while also taking in tax-deductible contributions. CLC has been at the forefront of legal and policy efforts aimed at upholding the Johnson Amendment for nearly a decade, and at a time when attempts to weaken campaign finance laws persist. 

Adav Noti — Campaign Legal Center’s executive director — issued the following statement on the importance of upholding the Johnson Amendment provision that prohibits tax subsidies from being used to fund electioneering: 

“Voters have a right to know who is spending money to influence our vote and our government. The Johnson Amendment is a critical safeguard amid ongoing attacks on campaign finance laws because it prohibits wealthy special interests from using charities to engage in secret spending and receive a tax write-off in the process. 

“The president and the IRS must follow the law and prevent big money from secretly influencing our elections. Campaign Legal Center will continue to defend charities from the administration’s attempt to turn them into vehicles for dark money.” 

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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.

WASHINGTON, D.C. — Campaign Legal Center (CLC) and  Democracy Defenders Fund (DDF) today formally requested that the U.S. Office of Government Ethics (OGE) and the U.S. Department of the Treasury’s Office of Inspector General launch investigations into Treasury Secretary Scott Bessent’s apparent failure to divest from numerous financial holdings in violation of his government ethics obligations. 

Before his confirmation, Bessent pledged to Treasury ethics officials that he would divest at least two dozen assets within 90 days of assuming office to avoid violating ethics rules, but he has yet to provide documentation showing he has done so, the DDF and CLC complaint noted. 

This agreement, made with OGE and the Treasury Department, was sent to the Senate as part of his confirmation hearings. The assets in question include private equity funds, private companies, farmland, and cryptocurrency-related products. The 90-day divestiture deadline passed on April 28, more than 100 days ago.

“The fact that Secretary Bessent — one of the wealthiest cabinet members in history — has not divested from his assets is not just a failure to uphold his pledge, but an outright violation of ethics rules. When there is no procedure in place to enforce these rules, and no consequence for those who break them, it creates a breeding ground for corruption,” said Kedric Payne, vice president, general counsel and senior director for ethics at Campaign Legal Center. “Regardless of political allegiance, they are public servants and should be held to the highest ethical standards that ensure they are prioritizing public interest over their own personal finances. Secretary Bessent should divest from his holdings and hold true to his pledge.” 

“Secretary Bessent’s ongoing disregard for his ethics commitments is astonishing,” said Virginia Canter, chief counsel for ethics and anti-corruption at Democracy Defenders Fund. “In any other administration, failure to comply with a binding ethics agreement would be cause for removal. But under the Trump Administration, this is yet another example of a dangerous belief that the rules simply don’t apply to them.” 

Bessent has failed to report selling even one asset, the complaint notes. In fact, after the date on which his divestitures should have been completed, Bessent asked to amend his agreement to continue to hold three investments. Moreover, as outlined in the letter he has participated in a series of activities—from bilateral trade negotiations to serving on the president’s digital asset workforce—that very well could have affected the value of these assets. 

As outlined in the letter, DDF and CLC are asking for OGE to take steps to hold the Secretary to account for his ethics commitments. In addition, DDF and CLC are asking the Treasury OIG to investigate whether any actions Bessent has taken over the past six months may have violated the conflict of interest laws. 

“Ethics agreements are legally binding safeguards to prevent corruption at the highest levels of government,” Canter said. “Secretary Bessent’s decision to flout these commitments while participating in matters that may affect his personal investments raises red flags and flouts public trust. Personal gain should not take precedence over public duty.”

See the complaint here.

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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. 

Washington, D.C. — Bruce V. Spiva — CLC’s senior vice president — issued the following statement in response to the current redistricting arms race happening nationwide:

“Congress, through our representatives, makes important decisions about our lives. When congressional districts are drawn unfairly, voters are deprived of having an equal say on the issues that matter to their community. 

“Congress has the power, and the responsibility, to resolve this problem. We need federal legislation that bans partisan gerrymandering and mandates independent redistricting in every state. Congress must also restore the full power of the Voting Rights Act to bar racially discriminatory redistricting. 

“The U.S. Supreme Court unfortunately shirked its obligation to protect Americans’ right to fair representation when it declared it was unwilling even to try to restrain partisan gerrymandering in Rucho v. Common Cause. This gave the green light for states to draw maps that silence voters by robbing Americans of fair representation.

“Campaign Legal Center (CLC) has been at the forefront of challenging unfair voting maps, both at the Supreme Court and state level. We oppose any redistricting efforts that violate the U.S. Constitution, the Voting Rights Act, or any other federal or state law. 

“When districts are drawn fairly, all voters have an equal chance to make their voice heard and elect leaders who will best serve their community. Elections should be determined by voters, not politicians who manipulate voting maps.” 

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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.