Scoop: House Dems sue FEC over campaign finance loophole
Add Axios as your preferred source to
see more of our stories on Google.
House Minority Leader Hakeem Jeffries at the Capitol in September. Photo: Tom Brenner/Getty Images
The campaign arm of House Democrats is suing the Federal Election Commission (FEC) over a controversial campaign finance loophole, Axios has learned.
Why it matters: Republicans have resorted to legally-contested tactics to get around their cash crunch, with Democrats hammering the GOP in fundraising this year.
- Democrats have accused Republicans of illegally financing their campaign ads, appealing to the FEC to rule if the tactic is allowed. The commission deadlocked along party lines last week, allowing the GOP to continue the practice.
- The Democratic Congressional Campaign Committee (DCCC), the campaign arm of House Dems, is asking a federal court to declare the practice illegal. A blockage from federal court would be a blow to GOP spending plans.
- "I fully expect the FEC to prevail in this frivolous lawsuit. We will see the DCCC in court," FEC Chairman Sean Cooksey told Axios.
The big picture: Senate Democrats alleged earlier this month that Senate Republicans are violating contribution limits to federal candidates.
- The GOP has been making ads that look mostly like attack ads, but which are paid for by joint fundraising committees as if they are fundraising ads.
- It has been a key strategy for conservatives, who are trying to capture majorities in both chambers while being outspent and outraised.
- Republicans argue it is allowed, and pointed out that Democrats like Kamala Harris and Hillary Clinton have used similar strategies.
Driving the news: The DCCC is asking a federal court on Thursday to rule whether the practice is illegal in the next 10 days, putting a stop to the GOP spending before the election.
- The DCCC's lawsuit says the FEC's inaction forces House Democrats to "compete on uneven terms" or face possible penalties and prosecution if the practice is ruled to be illegal in the future.
- The lawsuit points to examples of Republican Senate candidates, but no House GOP campaigns, using the tactic.
- "This is a desperate stunt. JFC television ads were approved unanimously in 2007 and reaffirmed last week. I'd be curious to hear what Harris Victory has to say about this ridiculous lawsuit, given that they have engaged in these ads themselves." NRSC General Counsel Ryan Dollar told Axios.
- Rachel L. Jacobs, the DCCC's general counsel, told Axios "Republican candidates are so cash strapped that they're now brazenly exploiting a self-created loophole to spend party committee money on candidate ads, well in excess of applicable limits, at the lowest unit charge."
Editor's note: This article has been updated to add the response from the FEC and NRSC.
