September 16, 2016 •
FEC Unable to Agree on Policy Regarding Permissible Corporate Political Activity by U.S. Domestic Subsidiaries of Foreign Nationals
On September 15, the Federal Election Commission (FEC) was unable to agree on a policy to clarify when and if a U.S. domestic subsidiary corporation of a foreign national is illegally involved in political activity. Federal law prohibits foreign nationals […]
On September 15, the Federal Election Commission (FEC) was unable to agree on a policy to clarify when and if a U.S. domestic subsidiary corporation of a foreign national is illegally involved in political activity.
Federal law prohibits foreign nationals from directly or indirectly making contributions, donations, expenditures, independent expenditures, and disbursements in connection with federal, state, or local elections. FEC regulations also prohibit foreign nationals from directing, controlling, or participating in the decision-making process of any person, such as a corporation, with regards to decisions concerning the making of contributions, donations, expenditures, or disbursements in connection with elections in the U.S.
Additionally, the FEC was unable to reach an agreement on the creation of a safe harbor for political committees to accept corporate contributions deemed not to have come from foreign national sources.
Today, a federal court ruled an unconnected committee should be allowed to use candidates’ names in the titles of their websites and social media pages while the case is being resolved. In Pursuing America’s Greatness v. FEC, the United States […]
Today, a federal court ruled an unconnected committee should be allowed to use candidates’ names in the titles of their websites and social media pages while the case is being resolved.
In Pursuing America’s Greatness v. FEC, the United States Court of Appeals for The District of Columbia Circuit reversed the district court’s denial of a preliminary injunction and remanded the case for the district court to enter a preliminary injunction enjoining the Federal Election Commission (FEC) from enforcing the application of 11 C.F.R. § 102.14(a) against the plaintiff pending the outcome of the case.
Federal law requires a candidate’s committee to include the name of the candidate in the committee’s title and requires an unauthorized political committee to not use a candidate’s name in its title. The purpose of the law is to avoid confusion. Through regulation, the FEC has extended the naming prohibition to other committee activities, solicitations, and communications, including special project names for websites or social media pages.
The court found there is a substantial likelihood the regulation violates the First Amendment and the plaintiff will prevail in the lawsuit because the FEC has not shown the regulation is the least restrictive means of achieving the government’s interest.
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