Supreme Court Decision in Citizens United Opens Huge Campaign Finance Loophole for Foreign Countries and other Foreign Entities to Participate in Federal Elections
Statement of Democracy 21 President Fred Wertheimer
The Supreme Court decision in the Citizens United case has opened a huge loophole in the campaign finance laws that will allow foreign countries, foreign corporations and foreign individuals to participate in electing and defeating federal officeholders and other candidates.
The Supreme Court majority was apparently unaware or unconcerned about the serious damage the Citizens United decision was going to do to the fundamental concept that we do not allow foreign countries and foreign entities to participate in our elections.
Under the Supreme Court decision, foreign countries, such as China (and its Sovereign Wealth Fund, the China Investment Corporation), foreign corporations and foreign individuals are now able to make campaign expenditures to directly support or oppose federal candidates, so long as these expenditures are made through foreign-controlled domestic corporations.
An existing statutory provision still explicitly prohibits foreign countries, foreign corporations and foreign individuals from making campaign contributions or expenditures to influence federal elections. This statutory prohibition, however, does not extend to contributions or expenditures made by foreign-controlled domestic corporations.
Until last week’s decision, such foreign-controlled domestic corporations were prohibited by the corporate expenditure ban from making expenditures to influence federal elections.
With the corporate expenditure ban now declared unconstitutional by the Citizens United decision, however, the door is open for domestic corporations controlled by foreign entities to run campaign ads, conduct direct mail campaigns and make other campaign expenditures to directly influence federal elections.
This dangerous loophole opened by the Court is one example of how the Supreme Court majority failed to recognize or understand the dangerous ramifications of its radical decision.
