House Republicans Introduce Bill To Close Loophole For Foreign Election Funding

House Republicans Introduce Bill To Close Loophole For Foreign Election Funding

Arjun Singh on July 10, 2023

House Republicans are introducing a bill that would prohibit foreign nationals from contributing to political advocacy organizations, closing a loophole that allows their funds to support political campaigns, according to a report by Axios.

Republican Rep. Bryan Steil of Wisconsin, who chairs the House Administration Committee that certifies elections to the chamber, will introduce the American Confidence in Elections (ACE) Act in the House on Tuesday, according to Axios. The bill will reportedly ban foreign nationals from donating to political advocacy organizations with tax-exempt status under Section 501 (c)(4) of the Internal Revenue Code.

Currently, only U.S. citizens, non-citizen U.S. nationals and foreign citizens with lawful permanent residency (known commonly as a “green card”) may donate to political campaigns and participate in a campaign’s decision-making process. However, foreign nationals are permitted to donate to 501(c)(4) organizations that may, in turn, donate to campaigns, endorse candidates and lobby elected officials.

“American elections are for American citizens. Yet foreign nationals still find ways to influence American elections,” said Steil to Axios. “The [ACE] Act will close loopholes that foreign nationals are exploiting to funnel money to super PACs or ballot initiatives.”

The text of the bill has not been released. However, in the 117th Congress, Republican Rep. Rodney Davis of Illinois, who was the committee’s ranking member at the time, introduced a 170-page bill with the same name.

Steil’s introduction of the bill comes following a report by Americans for Public Trust about foreign influence in U.S. elections, focusing on the Berger Action Fund, a 501(c)(4) organization, and the Wyss Foundation, a 501(c)(3) private charity funded by Swiss billionaire Hansjörg Wyss, who has used both groups to fund left-wing causes in the United States.

Through these organizations, Wyss has donated to Planned Parenthood, the “Sixteen Thirty Fund” that works to “advance equity and racial justice” by acting as a venture fund for left-wing NGOs and the National Redistricting Action Fund, a group run by former Attorney General Eric Holder that supports legal challenges to congressional districts drawn by Republicans. The total value of his donations exceeds $265 million, according to the report.

Wyss also allegedly contributed $120,000 directly to U.S. political candidates between 1990 and 2006, which would be a criminal offense. He could not be prosecuted due to the statute of limitations having passed, per the report.

Some of these groups, such as Planned Parenthood, have openly contributed funds to Democratic candidates. Wyss’ support suggests that the benefits of his funding may have enabled these groups to fund candidates, which would purportedly violate U.S. election law.

“Wyss aims to reinterpret the U.S. Constitution in light of progressive politics,” wrote his sister Heidi in a biography of Wyss, per the report.

In response to the report’s publication, Steil also announced that he would be chairing a field hearing of the House Administration Committee in Atlanta, Georgia, where he would discuss foreign influence in the U.S. electoral process.

The House Administration Committee and Wyss did not immediately respond to a request for comment.