Campaign Finance

Late Friday afternoon, the U.S. Supreme Court granted a stay of the Fourth Circuit’s decision setting aside the FCC Media Bureau’s guidance on entitlement to the lowest unit charge (“LUC”) for certain political ads placed on broadcast TV and radio.  See our prior post about this issue here.  Notably…

Continue Reading Supreme Court Action Revives FCC Media Bureau’s Political Ad Guidance

State regulators are beginning to grapple with the implications of the Supreme Court’s recent decision in National Republican Senatorial Committee v. FEC (“NRSC”).  Minnesota may have provided the first clear example of how the ruling could reshape state campaign finance regimes. On June 30, the Supreme Court struck down the federal limits on coordinated party expenditures, holding that political parties have a First Amendment right to spend unlimited amounts in coordination with candidates and rejecting the argument that such limits are necessary to prevent corruption. Although the Court did not directly address limits on party-to-candidate contributions or in-kind contributions, the decision immediately raised questions about the constitutionality of such limits, particularly in jurisdictions that, unlike federal law, do not distinguish between coordinated expenditures and in-kind contributions. Minnesota’s response suggests that answers may be arriving sooner than expected.

Continue Reading Early Post-NRSC Domino Falls: Minnesota Stops Enforcing Limits on Certain Party In-Kind Contributions

In the latest in a series of executive actions that aim to reshape much of government, President Trump signed an executive order on February 18 expanding the President’s authority over so-called independent agencies within the executive branch.  The impact of this executive order will be felt across the federal government…

Continue Reading New Executive Order Gives President Veto Power Over Some FEC Rulemaking

The Federal Election Commission has announced contribution limits for 2025-2026. The new “per election” limits are effective for the 2025-2026 election cycle (November 6, 2024 – November 3, 2026), and the calendar year limits are effective January 1, 2025.

The FEC increased the amount an individual can contribute to…

Continue Reading FEC Raises Contribution Limits for 2025-2026

The House Ethics Committee concluded 2024 by releasing a memorandum updating its guidance for Members’ personal use of political campaign funds (“updated guidance”).  While the Federal Election Campaign Act (“FECA”) and Federal Election Commission (“FEC”) regulations prohibit the personal use of campaign funds, House Rule 26.6(b) imposes additional restrictions on the “personal use” of campaign funds by a Member, her or his family, and other persons. 

The updated guidance reminds Members that House Rules are separate from, and in addition to, FEC regulations on the personal use of campaign funds.  Both the Ethics Committee and the FEC have emphasized their separate and independent jurisdiction, meaning that Members, their families and associates who are subject to House rules must comply with both regimes.

Additionally, the Senate also has its own rule (Rule 38.2) prohibiting Senators’ personal use of campaign funds.

While the House Ethics rules and FEC regulations are compatible, they are not identical.  Here are some of the more important distinctions:

Continue Reading New House Ethics Committee Memorandum Clarifies Rules on Personal Use of Covered Campaign Funds

With a game-changing advisory opinion (AO 2024-01), 2024 started out with a bang at the Federal Election Commission (“FEC”). Other consequential opinions, enforcement actions, and regulations continued in the following months, challenging the notion that the divided Commission cannot find consensus.

In this alert, we highlight the FEC’s major…

Continue Reading FEC Year in Review 2024

With Election Day fast approaching, corporations face increasing pressure from both internal and external forces to make legal decisions about political activities. This can be a fraught area of law, with little understood, highly technical regulatory issues that vary significantly across jurisdictions. Corporate counsel should be mindful of common—and sometimes…

Continue Reading Avoiding Pitfalls on the Path to Election Day: Common Political Law Risks for Corporations in Election Season

The Federal Election Commission (FEC) officially dipped its toes into the ongoing national debate around artificial intelligence (AI) regulation, publishing a Federal Register notice seeking comment on a petition submitted by Public Citizen to initiate a rulemaking to clarify that the Federal Election Campaign Act (FECA) prohibits deceptive AI-generated campaign…

Continue Reading FEC Seeks Comment on AI Petition After Earlier Deadlock, But New Rules Remain Elusive

Covington annually publishes a detailed survey of state campaign finance, lobbying, and gift rules.  Now, for the first time, Covington is releasing an updated survey that details federal campaign finance, lobbying, and gift rules, in addition to those of the 50 states and the District of Columbia. Corporations, trade associations, non-profits, other organizations, and individuals face significant penalties and reputational harm if they violate federal or state laws governing corporate and personal political activities, the registration of lobbyists, lobbying reporting, or the giving of gifts or items of value to government officials or employees. To help organizations and individuals comply with these rules, this detailed survey—now 327 pages—summarizes the campaign finance, lobbying, and gift rules adopted by the federal government, all 50 states, and the District of Columbia.

Newly added federal sections cover the Lobbying Disclosure Act, the Foreign Agents Registration Act, Congressional gift rules, executive branch gift rules, and the Federal Election Campaign Act. Information is provided in a table question and answer format intended to address common questions with practical guidance. 

Continue Reading Covington Releases Updated Survey of Federal and State Campaign Finance, Lobbying, and Gift Rules (2023 Edition)

What happens in Arkansas does not stay in Arkansas.  Or at least not when federal prosecutors from the Department of Justice’s Public Integrity Section get involved.

A recent sentencing from Arkansas highlights the many options in DOJ’s toolkit to pursue “state-level” misconduct involving public officials.  In the case of former state senator Jeremy Hutchinson, DOJ obtained a “global” guilty plea for misconduct charged in three separate district courts.  The court sentenced Hutchinson to 46 months incarceration. 

According to the Government’s sentencing memorandum, Hutchinson accepted over $157,500 from the owner of an orthodontic clinic in exchange for advancing favorable legislation to deregulate the state dental industry.  The bribes masqueraded as payment for legal retainers, according to the Plea Agreement.  In addition, Hutchinson:

commingled campaign contributions and donations with his own personal funds and misappropriated and converted campaign funds for his own personal use, including, but not limited to, using campaign funds for a vacation, hotel stay, travel expenses, groceries, a gym membership, and jewelry.

Continue Reading Recent Arkansas Sentencing Highlights How Easily Federal Prosecutors Can Target State Campaign Finance Issues