Trenton, NJ – A new proposal titled the Political Donation Transparency Act would make it illegal in New Jersey for political campaigns to automatically enroll donors in recurring contributions without their clear, affirmative consent, placing criminal penalties on a practice critics say misleads voters.
The bill is reportedly in response to questionable campaign tacticts used in the June 2024 New Jersey GOP primary election by then candidate Bill Spadea. Spadea came under fire for promoting advertisements touting the Trump family, but those funds, often recurring, were deposited into accounts affiliated with the candidate.
Spadea then faced further criticism when it was reported that a non-profit that he started was paying the candidate more than $250,000 with money solicited as benefiting Republican candidates in New Jersey.
Now, a new law is being pushed to set ground rules for similar campaign tactics in the future.
Under the legislation, campaigns and political committees would be prohibited from using pre-checked boxes or default settings that sign donors up for repeat payments. Instead, contributors must actively agree to recurring charges, and campaigns would be required to clearly state how much will be charged, how often, and for how long.
The bill, designated Assembly Bill 5559, applies to all political entities in the state — including candidate committees, joint committees, leadership committees, and independent expenditure committees — and covers any individual or group acting on their behalf.
Violating the law would be considered a fourth-degree crime, punishable by up to 18 months in prison, a $10,000 fine, or both. The measure also gives the Election Law Enforcement Commission the authority to establish and enforce rules under the Administrative Procedure Act.
The bill was introduced in response to growing concerns about fundraising tactics used by campaigns, especially online, where automatic recurring donations are often buried in fine print or hidden in confusing language. Lawmakers argue the measure brings donor protections in line with modern political fundraising strategies.
The act would take effect immediately if signed into law.
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Key Points
- The Political Donation Transparency Act bans automatic recurring political donations without explicit opt-in
- Campaigns must provide clear details on frequency, amount, and nature of the donation before charging
- Violators face fourth-degree criminal charges and potential jail time or fines
