FEC Called On to Close Dark Money Loophole Poisoning Democracy

An advocacy group called on the Federal Election Commission (FEC) on Monday to fix its interpretation of a rule that has helped dark money flourish.

At issue, says Washington, D.C.-based Public Citizen, is the federal agency wrongful reading of donor disclosure requirements for independent expenditures, or spending for or against a particular candidate. The agency also erred in its interpretation of the donor disclosure regulation for electioneering communications—ads for or against a political candidate that appear just ahead of an election.

By asserting that only “earmarked contributions” for those expenditures require disclosure, the agency created a loophole that effectively gutted full transparency of the sources of donations.

“No one earmarks their campaign contributions for a specific purpose,” said Craig Holman, government affairs lobbyist for the organization’s Congress Watch division. “Donors give money to campaigns and expect it to be used for campaign purposes.”

In its letter (pdf) to the FEC, Public Citizen noted:

That was the year the Supreme Court issued its Citizens United ruling, which opened the floodgates to dark money spending.

The letter also provides data from the Center for Responsive Politics showing the surge of this secretive spending in federal elections over the past decade:

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2002 $4 million 2004 $6 million 2006 $5 million 2008 $102 million 2010 $139 million 2012 $313 million 2014 $178 million 2016 $184 million 2018 $148 million

 “Dark money has become a scourge in our elections, allowing nondescript groups to raise and spend huge sums of corporate and special interest money for campaign ads, while refusing to tell the public who is paying to influence their vote,” said Lisa Gilbert, vice president of legislative affairs for Public Citizen. “Knowing where the money comes from is a valuable voter’s cue in judging the merit of the message.”