Election securityForeign Money Flows into U.S. Politics

By Brian Padden

Published 6 November 2019

Untold amounts of foreign donations are flowing into America’s political system, with little accountability or limits. Although election experts say it’s impossible to accurately estimate the extent of foreign financial influence over U.S. elections, many agree it has increased substantially since a landmark Supreme Court ruling nearly a decade ago opened the flood gates.

Untold amounts of foreign donations are flowing into America’s political system, with little accountability or limits.

Although election experts say it’s impossible to accurately estimate the extent of foreign financial influence over U.S. elections, many agree it has increased substantially since a landmark Supreme Court ruling nearly a decade ago opened the flood gates.

Recent headlines have highlighted ways in which foreign donations can enter America’s political bloodstream, including the revelation that business associates of presidential lawyer Rudy Giuliani were indicted for pumping foreign money into federal and state campaigns and political action committees.

But experts say that stopping the flow of foreign money into U.S. elections is hampered by legal loopholes, illicit financial maneuvers and ultimately a lack of political resolve.

Republicans and Democrats vociferously oppose foreign interference in US. elections, noting it is prohibited under federal campaign law and undermines the democratic process. But both parties reportedly have received foreign donations, either legally though American corporate subsidiaries, or illicitly through shell companies and political action committees (PACs)

How, or how much, to weed out foreign contributions are ideologically-fraught questions. Advocates for transparency in government, for example, want to end privacy restrictions that allow anonymous donations to political action committees, known as PACs — non-profit organizations that advocate for political causes but do not work directly for a party or campaign. The shielding of donors makes it harder to detect foreign financial contributions.

The more this information that’s sort of hidden behind closed doors, the less accountability we’re going to have in U.S. politics and the greater the opportunities become for foreign money and foreign influence to sneak in and affect U.S. elections,” said Ben Freeman, the director of the Foreign Influence Transparency Initiative at the Center for International Policy in Washington.

But privacy advocates say forcing the disclosing of the identity of donors to political advocacy groups would do more harm than good.”We have documented evidence of people [whose donations become public] being fired from their jobs, or companies not really wanting to fire them but feeling they had to because they were being boycotted or harassed. We have evidence of people being in some cases physically attacked,” said Brad Smith, the chairman of the Institute for Free Speech.