October 3, 2022 •
New Jersey Campaign Contribution Ban on Banks Does Not Apply to Trade Associations
The U.S. Court of Appeals for the 3rd Circuit issued a ruling allowing trade associations representing banks to make campaign contributions.
The New Jersey state law prohibits banks from providing financial support to candidates, but the court found there is less risk of corruption when industry trade associations make the contribution because the member banks have varying interests.
The plaintiff in the case lacked standing to sue on behalf of individual banks, and the plaintiff’s First Amendment challenge to the law was rejected.
As a result, while banks cannot make political contributions to candidates in New Jersey, trade associations are now permitted to make such contributions.
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