Federal Government & Administrative Affairs
What is the Presidential Action?
The President has issued a memorandum directing the Attorney General and the Secretary of the Treasury to investigate and address the use of online fundraising platforms for making illegal political contributions. These include “straw donor” contributions, where donations are made in the name of another person, and contributions from foreign nationals, both of which are prohibited under federal law.
Background or Context with Statistics and Source References
For years, U.S. law has banned making political contributions in another’s name (52 U.S.C. 30122) and from foreign nationals (52 U.S.C. 30121) to protect the integrity of elections. Despite these laws, recent investigations and reports suggest a troubling trend where online platforms are being used to circumvent these rules. Notably, a platform named ActBlue was found to have detected numerous fraud campaigns with foreign links, highlighting ongoing vulnerabilities in the current system.
Why This Action Was Taken
The directive was issued in response to alarming evidence suggesting that online fundraising platforms might be complicit in laundering illegal contributions to political campaigns. These platforms may be breaking down large, illegal donations into smaller, seemingly legitimate ones. This action aims to reinforce election laws, ensuring fair play and transparency in political funding.
Short and Long-Term Impact on People
In the short term, this investigation may lead to stricter scrutiny of donations and possibly disrupt fundraising activities for political entities. Over the next year and beyond, it could restore public confidence in the electoral process by demonstrating a commitment to tackling corruption and enforcing campaign finance laws rigorously.
Performance/Impact Parameters to Measure Success
Success will be measured by the ability of the Justice Department to identify and prosecute violations effectively, the establishment of stricter controls on fundraising platforms, and a reduction in the incidence of reported violations. Long-term success would see an increase in transparency and trust in the electoral process.
Constitutional Validity and Legal Precedents
The action is grounded in existing federal laws that prohibit straw and foreign contributions. Historically, similar directives have faced scrutiny regarding enforcement and privacy concerns, but the focus on existing legal frameworks in this directive provides a strong foundation for its validity. Previous court rulings upholding the enforcement of campaign finance laws will likely support the actions taken under this memorandum.
