A Little-Noticed Supreme Court Ruling Could Help Build A Dam Against Foreign Money In American Elections

This article is part of TPM Cafe, TPM’s home for opinion and news analysis.

Just this month, a Trump Super PAC was fined by the FEC for soliciting foreign donations. States are trying to stop this kind of foreign money from flowing into U.S. elections. Massachusetts is trying to limit foreign corporate political spending in is its elections through new legislation. And the U.S. Supreme Court, it appears, is actually on their side.

This may come as a surprise: The Roberts Court has repeatedly opened the doors to more money in politics. And Justice Alito famously disagreed with President Obama who, during the 2010 state of the union, scolded the Justices to their face about their ruling in Citizens United. “Last week, the Supreme Court reversed a century of law to open the floodgates for special interests — including foreign corporations — to spend without limit in our elections. Well I don’t think American elections should be bankrolled by America’s most powerful interests, or worse, by foreign entities.” In response Justice Alito shook his head and mouthed the words “not true.”

The intervening decade would demonstrate that President Obama was right about corporate money coming into American elections. During the last federal election in 2020, there was $100 million in corporate money spent, which was up from the $70 million in corporate money spent during the federal midterm election in 2018.

This corporate political spending trend continued this year in state elections. In the California governor’s recall in 2021, for example, business trade association spent millions and more money came in directly from businesses. So far in Virginia, millions of corporate political dollars have been spent in the fight over who will be governor as well as who will control the legislature, including from Dominion Energy, Altria (formerly Philip Morris), Amazon, and Verizon.

Meanwhile, a little noticed case that came out during the height of the pandemic could have a big impact on whether and how foreign corporations play in American elections. The Supreme Court in United States Agency for International Development v. Alliance for Open Society International, Inc. (“Open Society II”), a case completely unrelated to elections, decided that “[i]n short, plaintiffs’ foreign affiliates are foreign organizations, and foreign organizations operating abroad have no First Amendment rights.”

Foreign nationals (the human kind) have long been barred from spending in U.S. elections under 52 U.S.C. § 30121. That is why election law experts had their hair on fire about the question of Russian interference the 2016 election. And even the Roberts Supreme Court in a case called Bluman v. FEC upheld the constitutionality of the ban on foreign nationals’ spending money in American elections.

But the law has been as clear as mud between 2010’s Citizens United and 2020’s Open Society II about whether that foreign ban naturally applied to foreign corporations as well as humans. In two cases, the state of California and the FEC took the position that the foreign ban did apply to foreign corporations. In the California case, a foreign pornographer spent in an LA election about mandated condom usage in porn. (He was against it.) He and his foreign company spent illegally in that LA election. California went after him and he had to pay a $61,500 fine. Then in the 2016 election a foreign company called American Pacific International Capital spent illegally $1.3 million in support of Jeb Bush’s failed effort to become president. The FEC issued a civil fine to the corporation of $550,000.

While Congress is going nowhere fast in passing elections reform, including ones that would keep foreign meddling in elections at bay, states and localities have been doing their best to keep foreign corporate money out of their elections. For example, under a Washington State law that went into effect in 2020 “[n]o contribution, expenditure, political advertising, or electioneering communication may be made or sponsored by a foreign national, financed in any part by a foreign national, or have a foreign national involved in the decision-making in any way.” Similar laws were passed in North Dakota and New Hampshire.

Meanwhile, Montana enacted S.B. 326 into law on May 8, 2019, thereby creating a state cause of action for violations of a foreign-national contribution ban that is consistent with the restriction under current federal law. In Massachusetts this year there are several bills pending that would limit electoral spending by foreign-influenced corporations.

Localities have also acted. In 2020, for instance, Seattle city council unanimously voted to limit foreign controlled corporations from spending in their election.

These state and local efforts to keep foreign money out have generated criticism that they would violate the First Amendment rights of corporations under Citizens United to spend money in politics. That’s why the Open Society II case is so important: it indicates that foreign corporations cannot raise First Amendment objections to U.S. laws or policies. Thus, a law that bans foreign corporations from spending in U.S. elections cannot be challenged by a foreign corporation as a violation of free speech. According to Open Society II, foreign corporations have no such rights to assert. This means reforms like those in St. Petersburg, Washington State and pending in Massachusetts are on firmer constitutional ground.

Ciara Torres-Spelliscy is a Professor of Law at Stetson University College of Law, a Fellow at the Brennan Center and the author of the book, Political Brands.

Correction: This article originally referred to a St. Petersberg, Florida ban on foreign corporate spending in elections that has since been repealed.

Jan. 6 Panel Greenlights Criminal Contempt Charges For Bannon

A lot of things happened. Here are some of the things.

No Messing Around

The House Jan. 6 Select Committee last night voted unanimously to hold former White House adviser Steve Bannon in contempt after he ditched his hearing last week and refused to hand over documents listed in the panel’s subpoena.

  • “No one in the United States of America has the right to blow off a subpoena by a court or by the United States Congress,” committee member Jamie Raskin (D-MD) declared after the vote.
  • The full House will vote Thursday on whether to refer Bannon to the Justice Department, which would decide on whether to prosecute him.
  • Committee chair Bennie Thompson (D-MS) warned the rest of Trump’s foot soldiers before the panel vote that they were “on notice” if they were “thinking of following the path” Bannon went down.

Biden Settles On New Topline For Reconciliation

The President told Democrats during a White House meeting yesterday that the new price tag for the sweeping $3.5 trillion reconciliation bill would be cut down to about $2 trillion, according to multiple outlets.

  • Biden said the bill’s tuition-free community college plan would likely get scrubbed out from the legislation, the Wall Street Journal reports. Also likely gone: the clean electricity program.
  • Congressional Progressive Caucus chair Pramila Jayapal (D-WA) told reporters that “all our priorities are there in some way, shape or form,” according the Washington Post.
  • Rep. Josh Gottheimer (D-NJ) said the meeting with Biden “really moved the ball forward,” per Punchbowl.
  • Biden said he wanted an agreement on reconciliation before the upcoming COP in Glasgow, according to the New York Times.

Voting Rights On The Senate Floor

Today is when the Freedom to Vote Act is being put to a vote in the Senate, as scheduled by Senate Majority Leader Chuck Schumer (D-NY)–meaning it’s also the day when Sen. Joe Manchin (D-WV) will have to put up or shut up with regards to the 10 Republican votes that he insists are totally there.

  • There are “about five or six” GOP senators potentially on board with the legislation, Sen. Jon Tester (D-MT) told TPM earlier this month.
  • Sen. Angus King (I-ME) gave a stirring Senate floor speech last evening on democracy’s present crisis:

Rahm Emanuel’s Rocky Confirmation

Former Chicago Mayor Rahm Emanuel, Biden’s pick to be ambassador to Japan, is having his confirmation hearing with the Senate Foreign Relations Committee today–which is also the seven-year anniversary of black teen Laquan McDonald’s killing by a white police officer.

  • Progressive Democrats like Reps. Cori Bush (D-MO) and Alexandria Ocasio-Cortez (D-NY) have demanded that Biden withdraw Emanuel’s nomination. They’ve pointed to his infamous attempt to block the police body cam footage of McDonald’s death from being released until a judge forced him to do so.
  • Emanuel gave a letter to the committee from one of McDonald’s uncles vouching for him as proof that the late teen’s family approves of the nomination, according to the Washington Post. But the uncle told the Post that not “everyone” in McDonald’s family supports Emanuel.
  • Emanuel still has a shot at getting confirmed even if some Democrats break from their party, thanks to three Republicans: Sens. Susan Collins (R-ME), Roy Blunt (R-MO) and Lindsey Graham (R-SC)

Hitler-‘Stached Insurrectionist Kicked Out Of Army

It’s now come to light that Timothy Hale-Cusanelli, an Army sergeant who worked part-time in human resources while wearing a Hitler mustache, was discharged earlier this year for participating in the Capitol attack on Jan. 6.

  • Hale-Cusanelli, who allegedly once said that he would “kill all the Jews and eat them for breakfast, lunch and dinner” if he were a Nazi, allegedly showed up to work looking like this:
  • Hale-Cusanelli is one of at least six military service members who have been charged in connection to the attack. He’s still being held in custody.

Morning Memo Radio ?

Pro-Trump Senators Caucused In Storage Closet On Jan. 6

About a dozen Republican senators who planned on voting against certifying the 2020 election results stuffed themselves into a storage closet during the Capitol insurrection to privately discuss whether their plan to destroy the fabric of American democracy was still a good idea.

  • Sen. Tommy Tuberville (R-AL) told the Washington Post that he “didn’t really listen” to his colleagues’ handwringing at the closet meeting. He ultimately stuck to his plan to object to certification even after the attack.

CNN Anchor Reveals He’s Immunocompromised

During a roundtable discussion on the COVID-19 vaccine, CNN national correspondent John King disclosed on air yesterday that he has multiple sclerosis and is therefore immunocompromised.

  • King told his colleagues that he’s “so grateful” that they’re vaccinated and that CNN has vaccine requirements.

A Spankin’ New Criminal Probe Into The Trump Organization

The good times never end: Trump’s company is facing yet another criminal investigation in addition to the Manhattan district attorney’s sprawling probe, according to the New York Times.

  • Westchester County District Attorney Mimi Rocah is reportedly investigating Trump’s golf resort, Trump National Golf Club Westchester.
  • The full scope of the investigation isn’t known yet. However, least part of the probe includes looking at whether the Trump Organization misled local officials about the resort’s property value to deflate its taxes, according to the Times.

Graphic Design Is My Passion

Ex-Trump lawyer Rudy Giuliani, with apparently nothing more important to occupy his time at the moment, posted a video of himself impersonating Abraham Lincoln while attacking Terry McAuliffe, the Democratic candidate in Virginia’s gubernatorial race. It’s pure nightmare fuel:

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It’s a Good Sign

There’s a bunch of news out of today’s Democratic caucus meetings about specific programs being dropped from the reconciliation bill altogether or cut by this or that fairly dramatic amount. Unsurprisingly this is generating a lot of anger and gnashing of teeth. Tuition free community college is out, for instance, according to reports of what President Biden told House and Senate progressives. I have a different take on it. This is actually some of the most promising news I’ve heard in some time: Because these details are clearly coming from a real negotiation.

I’m not saying these programs don’t matter. Far from it. It’s more that I’ve already discounted or accepted the fact that a lot of these things are going to be cut dramatically. The bigger danger I see is that the whole thing falls apart and nothing happens at all. So actual negotiations happen is a big deal.

Where Things Stand: Cohen Gets Coffee With Kanye Who Is Wearing A Creepy Mask For Some Reason

Let me just preface this by saying, I don’t have a lot of answers. But it wasn’t for a lack of trying: I reached out to Michael Cohen this afternoon for some clarification on WTF is going on and got crickets, so I will update you if I hear back.

But.

Michael Cohen and rapper and (one-time?) MAGA fan Kanye West (who recently legally changed his name to his rapper pseudonym “Ye”) were spotted getting coffee together today in New York City’s Upper East Side, according to Page Six. The rapper was wearing some bizarre prosthetic mask, apparently similar to ones he’s worn before. It’s a white mask. It’s really spooky looking. I don’t know enough about West’s aesthetic or marketing campaigns to give you a clear answer on why or how this originated, but check out the picture below.

Continue reading “Where Things Stand: Cohen Gets Coffee With Kanye Who Is Wearing A Creepy Mask For Some Reason”

READ: Feds Charge Rep. Fortenberry Over Alleged Lies About Foreign Campaign Cash

A federal grand jury in Los Angeles indicted Rep. Jeff Fortenberry (R-NE) on charges of lying to federal agents over foreign contributions to his 2016 campaign.

Continue reading “READ: Feds Charge Rep. Fortenberry Over Alleged Lies About Foreign Campaign Cash”

More on BIF Envy and Dem Culs-De-Sac #3

TPM Reader JB strikes back!

I noted a couple of your correspondents at TPM objected to the idea that Democrats in the House and Senate drive themselves into a legislative cul-de-sac with respect to the infrastructure bill, either because they doubt the reality of the cul-de-sac or because they didn’t think Democrats had a choice.

They did have a choice, and it centered around process.  Use of the reconciliation procedure for the bulk of President Biden’s Build Back Better agenda was a given, with all Republicans in the House and Senate united in opposition to action on anything except building more roads and a few other elements of physical infrastructure and most Republicans opposed even to these.  This did not mean that Democrats had to use an entirely closed process, with hardly any public hearings or committee votes on legislative language or amendments.

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The Sausage Making: Pre-Admission Admissions About The New Climate Reality

Congress is back in session, but we’re continuing what began as a recess-time series of evening briefings on the reconciliation negotiations. Check in here to find out how the sausage-making is going. 

The Clean Electricity Performance Program (CEPP), the beating heart of Democrats’ reconciliation package, appears to be dead thanks to Sen. Joe Manchin’s (D-WV) opposition. He then delivered a swift blow to a plan B policy that some of his Democratic colleagues had floated to fill the gaping hole in the plan — a carbon tax — Tuesday morning, telling reporters that it’s not on the table. 

Continue reading “The Sausage Making: Pre-Admission Admissions About The New Climate Reality”

Not Complicated

The story here is not complicated, at least in broad strokes. Mid-summer Delta, economic knock-on effects of Delta and finally Afghanistan started sapping Biden’s popularity. Manchin saw that ebbing power and started pumping the brakes on the President’s agenda. This was of a piece with DC insider culture, which Manchin is the ultimate creature of, turning hard on the President. The big reporters changing their view of him and the lobbies sensing weakness.

All political power is unitary and it’s played out over the last two or three months in a very damaging way.

Manchin’s Push For Cuts To Child Tax Credit Comes As Big Surprise To Key Boosters

Sen. Joe Manchin’s (D-WV) sudden reversals against various policies in the reconciliation bill often come as unhappy surprises to his fellow Democrats. 

Continue reading “Manchin’s Push For Cuts To Child Tax Credit Comes As Big Surprise To Key Boosters”

Exploding Latino Population Excluded From Texas GOP’s New Congressional Maps, Suit Says

People of color made up the vast majority of Texas’ decade-long growth spurt, especially Latinos, a group that accounted for fully half of the state’s growth.

But Republicans control the state’s legislature. And the new political maps they’ve approved in recent days as part of the redistricting process dilute Latinos’ voting power, according to the first lawsuit over the maps.

Continue reading “Exploding Latino Population Excluded From Texas GOP’s New Congressional Maps, Suit Says”