Campaign Finance

RALEIGH – U.S. Postmaster Louis DeJoy should be investigated immediately for an alleged campaign donation scheme that may have violated North Carolina law, according to a complaint filed today by Common Cause NC with the State Board of Elections and also sent to Attorney General Josh Stein requesting a criminal investigation.

On August 31, 2020, Common Cause filed comments urging the Federal Election Commission (FEC) to conduct a rulemaking proceeding in order to adopt a regulation to prohibit billionaires like Michael Bloomberg from evading federal law limits on contributions to party committees by routing funds through their own campaign committees. Bloomberg’s $18 million contribution to the Democratic National Committee—and hundreds of thousands of dollars in-kind contributions to state Democratic party committees—from his self-financed presidential campaign committee took advantage of a longstanding allowance for candidates to transfer unlimited leftover campaign funds to party committees. Previously those funds were raised under existing contribution limits, but Bloomberg self-financed his campaign to the tune or more than $1 billion.

Today, Common Cause filed comments urging the Federal Election Commission (FEC) to conduct a rulemaking proceeding in order to adopt a regulation to prohibit billionaires like Michael Bloomberg from evading federal law limits on contributions to party committees by routing funds through their own campaign committees. Bloomberg’s $18 million contribution to the Democratic National Committee—and hundreds of thousands of dollars in-kind contributions to state Democratic party committees—from his self-financed presidential campaign committee took advantage of a longstanding allowance for candidates to transfer unlimited leftover campaign funds to party committees. Previously those funds were raised under existing contribution limits, but Bloomberg self-financed his campaign to the tune or more than $1 billion.

Under federal law, presidential candidates must file monthly reports in an election year if they have raised or spent $100,000 -- or anticipate doing so during the course of the year, said Paul Ryan, an election law expert who oversees policy and litigation at Common Cause. The bigger legal jeopardy might be for the Trump campaign if evidence ever emerged that they operated in concert with West to benefit the President's reelection, Ryan said. "If the Trump campaign is asking Kayne West to do these things -- qualify for the ballot, etc. -- then arguably the Trump campaign is soliciting an illegally large, in-kind contributions to the Trump campaign in the form of every penny Kanye West spends," he said.

“He’s either violating the reporting requirements or doesn’t anticipate to spend $100,000 or more on his presidential campaign, and the latter part seems unlikely,” said Paul S. Ryan, the head of litigation at the good government group Common Cause. “He’s missed an FEC reporting deadline on August 20 and is in [likely] violation of the law.” ... But if West simply refused to comply, the FEC would have to step in and actually vote to bring him to court. Since Trump has failed to nominate enough people for a quorum on the FEC’s commission, that means the organization is totally toothless. And if his campaign continues to refuse to follow the law, it might be impossible to know exactly how deep the GOP’s involvement in West’s campaign is until well after the November election. “The law wasn’t designed to deal with the wealthy spoiler candidate who’s trying to avoid disclosure to help another candidate,” said Ryan. “Kanye West isn’t the typical candidate so this enforcement mechanism isn’t going to work for his campaign.”

This week Forbes broke the story that Jared Kushner, “de facto chief” of President Donald Trump’s reelection campaign, has been speaking “regularly,” “almost daily,” with Kanye West since West’s July 4 tweet declaring that he is running for president. “Regular” conversations between the head of one presidential campaign and an opposing candidate looks like coordination and is highly irregular. Depending on what they’re talking about, they may be breaking campaign finance laws.