Chamber’s Foreign Funding Demonstrates the Need to Revisit Citizens United

Coming on the heels of a report by ThinkProgress on how the US Chamber of Commerce uses membership dues from foreign corporations to pay for political advertisements in American elections, the Supreme Court’s ruling in Citizens United is facing new scrutiny for opening up the floodgates of corporate spending. People For the American Way has spoken out against the Chamber’s practices of collecting “hundreds of thousands of dollars from foreign owned businesses, including companies owned by foreign governments,” and the editorial board of the New York Times is also sounding the alarm. The Times editors write that the election system is broken as a result of Citizens United and actions by Republicans in Congress and the FEC to weaken the remaining regulations of campaign finances:

Because the United States Chamber is organized as a 501(c)(6) business league under the federal tax code, it does not have to disclose its donors, so the full extent of foreign influence on its political agenda is unknown. But Tuesday’s report sheds light on how it raises money abroad. Its affiliate in Abu Dhabi, for example, the American Chamber of Commerce, says it has more than 450 corporate and individual members in the United Arab Emirates who pay as much as $8,500 a year to join.

Because of a series of court decisions that culminated in the Supreme Court’s Citizens United ruling earlier this year, these and similar 501(c) nonprofits have become huge players in the year’s election, using unlimited money from donors who have no fear of disclosure. (Not surprisingly, the chamber has been a leading opponent of legislation to require disclosure.) One such group, American Crossroads, organized by Karl Rove, announced on Tuesday a $4.2 million ad buy to support Republican candidates, bringing the group’s total spending to about $18 million so far.

The possible commingling of secret foreign money into these groups raises fresh questions about whether they are violating both the letter and spirit of the campaign finance laws. The Federal Election Commission, which has been rendered toothless by its Republican members, should be investigating possible outright violations of the Federal Election Campaign Act by foreign companies and the chamber.

Now, Minnesota Senator Al Franken is calling on the FEC to look into the Chamber’s finances, the Star Tribune reports:

Franken’s letter says that the Chamber’s mixing of funds under current FEC rules “is not per se illegal.” But he wrote that the company had to demonstrate that its foreign funds were not used for political purposes, and pushed the FEC to launch an investigation.

In addition, Franken’s letter asked the FEC to change its regulations allowing foreign companies to spend on elections — which is legal so long as the company is incorporated in the U.S. and creates a special election committee staffed by Americans.

 

PFAW