An ethics watchdog has claimed a “major court victory” after a federal judge issued a ruling invalidating a Federal Election Commission (FEC) regulation that allowed contributors to so-called dark money organizations avoid disclosure.
“This ruling looks like a major game changer,” said Noah Bookbinder, executive director of Citizens for Responsibility and Ethics in Washington (CREW). “Based on this ruling, the public should know a whole lot more about who is giving money for the purpose of influencing an election, and it will be much harder for donors to anonymously contribute to groups that advertise in elections.”
BREAKING: We just won a major victory against dark money that could change the political landscape and bring much more transparency to our elections https://t.co/wWwar2zRZb
— Citizens for Ethics (@CREWcrew) August 4, 2018
CREW was a plaintiff in the case, and had challenged in 2012 Karl Rove’s Crossroads GPS — a “not-political committee” — over its failure to disclose who donated $6 million in the Ohio Senate race, a sum CREW argued was subject to federal reporting requirements.
US District Court Judge Beryl A. Howell found that Crossroads GPS’s defense didn’t hold water, writing Friday that the three-decade old FEC regulation at question fell short “of the broad disclosure that Congress intended.”
The challenged regulation, she concluded, can facilitate groups’ “routing” of contributions to candidates or the groups’ affiliated super PACS, and
blatantly undercuts the congressional goal of fully disclosing the sources of money flowing into federal political campaigns, and thereby suppresses the benefits intended to accrue from disclosure, including informing the electorate, deterring corruption, and enforcing bans on foreign contributions being used to buy access and influence to American political officials.
Her decision, CREW explains, means that “dark money groups that spend at least $250 in independent expenditures — a key type of political ad — must report every contributor who gave at least $200 in the past year as well as those who give to finance independent expenditures generally.”
In a Twitter thread outlining the importance of ruling, Center for Responsive Politics’ Robert Maguire says it “could fundamentally change the role dark money plays in elections (if it has a role at all).”
This. Is. Huge.
It’s hard to exaggerate how big of a deal this @CREWcrew victory is. If it stands, it could fundamentally change the role dark money plays in elections (if it has a role at all). https://t.co/OKftf17I7f
— Robert Maguire (@RobertMaguire_) August 4, 2018
Dark money groups will still benefit from certain loopholes that, honestly, might never be closed, like the “issue ad” one we mentioned yesterday https://t.co/X6m6ogyDGg
— Robert Maguire (@RobertMaguire_) August 4, 2018
BUT, that is not at all to downplay the importance of the decision.
Consider that dark money groups have spent more than $733 MILLION (!) on independent expenditures — the type of spending the case was concerned with — since Citizens United.
A huge portion of their activity.
— Robert Maguire (@RobertMaguire_) August 4, 2018
Bookbinder agreed, saying it “could dramatically change the American political landscape and result in significantly more transparency.”
“Major donors are now on notice that if they contribute to politically active 501(c)(4) organizations, their contributions will have to be disclosed,” he said, “and if they are not, CREW will pursue enforcement cases with the FEC and, if necessary, in court.”
Help us Prepare for Trump’s Day One
Trump is busy getting ready for Day One of his presidency – but so is Truthout.
Trump has made it no secret that he is planning a demolition-style attack on both specific communities and democracy as a whole, beginning on his first day in office. With over 25 executive orders and directives queued up for January 20, he’s promised to “launch the largest deportation program in American history,” roll back anti-discrimination protections for transgender students, and implement a “drill, drill, drill” approach to ramp up oil and gas extraction.
Organizations like Truthout are also being threatened by legislation like HR 9495, the “nonprofit killer bill” that would allow the Treasury Secretary to declare any nonprofit a “terrorist-supporting organization” and strip its tax-exempt status without due process. Progressive media like Truthout that has courageously focused on reporting on Israel’s genocide in Gaza are in the bill’s crosshairs.
As journalists, we have a responsibility to look at hard realities and communicate them to you. We hope that you, like us, can use this information to prepare for what’s to come.
And if you feel uncertain about what to do in the face of a second Trump administration, we invite you to be an indispensable part of Truthout’s preparations.
In addition to covering the widespread onslaught of draconian policy, we’re shoring up our resources for what might come next for progressive media: bad-faith lawsuits from far-right ghouls, legislation that seeks to strip us of our ability to receive tax-deductible donations, and further throttling of our reach on social media platforms owned by Trump’s sycophants.
We’re preparing right now for Trump’s Day One: building a brave coalition of movement media; reaching out to the activists, academics, and thinkers we trust to shine a light on the inner workings of authoritarianism; and planning to use journalism as a tool to equip movements to protect the people, lands, and principles most vulnerable to Trump’s destruction.
We’re asking all of our readers to start a monthly donation or make a one-time donation – as a commitment to stand with us on day one of Trump’s presidency, and every day after that, as we produce journalism that combats authoritarianism, censorship, injustice, and misinformation. You’re an essential part of our future – please join the movement by making a tax-deductible donation today.
If you have the means to make a substantial gift, please dig deep during this critical time!
With gratitude and resolve,
Maya, Negin, Saima, and Ziggy