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The Supreme Court just made it much easier to bribe a member of Congress
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Vox
The Supreme Court’s conservative majority has been at war with campaign finance laws for more than a dozen years, stretching at least as far back as its decision in Citizens United v. FEC (2010). On Monday, the Court’s six Republican appointees escalated this war.
The Court’s decision in FEC v. Ted Cruz for Senate is a boon to wealthy candidates. It strikes down an anti-bribery law that limited the amount of money candidates could raise after an election in order to repay loans they made to their own campaign.
Federal law permits candidates to loan money to their campaigns. In 2001, however, Congress prohibited campaigns from repaying more than $250,000 of these loans using funds raised after the election. They can repay as much as they want from campaign donations received before the election (although a federal regulation required them to do so “within 20 days of the election”).
The idea is that, if already-elected officials can solicit donations to repay what is effectively their own personal debt, lobbyists and others seeking to influence lawmakers can put money directly into the elected official’s pocket — and campaign donations that personally enrich a lawmaker are particularly likely to lead to corrupt bargains. Sen. Ted Cruz (R-TX) manufactured a case to try to overturn that $250,000 limit, and now, the Court has sided with him.
Indeed, now that this limit on loan repayments has been struck down, lawmakers with sufficiently creative accountants may be able to use such loans to give themselves a steady income stream from campaign donors.
According to the Los Angeles Times, for example, Rep. Grace Napolitano (D-CA) made a $150,000 loan to her campaign at 18 percent interest in 1998 — before the 2001 law was enacted. Though Napolitano did eventually reduce the interest rate on this loan to 10 percent, the high-interest loan allowed her to make a considerable profit from donors.
The Court’s decision in FEC v. Ted Cruz for Senate is a boon to wealthy candidates. It strikes down an anti-bribery law that limited the amount of money candidates could raise after an election in order to repay loans they made to their own campaign.
Federal law permits candidates to loan money to their campaigns. In 2001, however, Congress prohibited campaigns from repaying more than $250,000 of these loans using funds raised after the election. They can repay as much as they want from campaign donations received before the election (although a federal regulation required them to do so “within 20 days of the election”).
The idea is that, if already-elected officials can solicit donations to repay what is effectively their own personal debt, lobbyists and others seeking to influence lawmakers can put money directly into the elected official’s pocket — and campaign donations that personally enrich a lawmaker are particularly likely to lead to corrupt bargains. Sen. Ted Cruz (R-TX) manufactured a case to try to overturn that $250,000 limit, and now, the Court has sided with him.
Indeed, now that this limit on loan repayments has been struck down, lawmakers with sufficiently creative accountants may be able to use such loans to give themselves a steady income stream from campaign donors.
According to the Los Angeles Times, for example, Rep. Grace Napolitano (D-CA) made a $150,000 loan to her campaign at 18 percent interest in 1998 — before the 2001 law was enacted. Though Napolitano did eventually reduce the interest rate on this loan to 10 percent, the high-interest loan allowed her to make a considerable profit from donors.
