Introduction

Welcome to the February edition of the Political Law Playbook. This month’s federal coverage features new Federal Election Commission (“FEC”) contribution limits, and the resignation and termination of two respective FEC commissioners. In addition, former US Senator Bob Menendez has recently been sentenced after previously being found guilty of bribery, fraud, and illegal foreign-agent offenses. This edition also highlights a new memo released by US Attorney General Pam Bondi that suggests that criminally prosecuting Foreign Agents Registration Act (“FARA”) violations outside of the realm of traditional espionage settings will not be prioritized by the Trump Administration’s Department of Justice. On the state level, California’s Fair Political Practices Commission recently released a long-awaited decision that supports the legality of making campaign contributions through multiple affiliated committees. Additionally, the constitutionality of New York’s Commission on Ethics and Lobbying in Government was argued in front of the state’s highest court. We also highlight the DC City Council’s decision to expel a member over allegations that he took bribes. 

Federal Elections & Campaign Finance

FEC Issues New Contribution Limits – Under the Federal Election Campaign Act (“FECA”), certain contribution limits are indexed for inflation every two years based on the rate of inflation as captured under the consumer price index. In January, the FEC announced the updated limits for the 2026 election cycle. The new inflation-adjusted limits are $3,500 per election for contributions made by persons to candidates, $44,300 per calendar year for contributions made by persons to national party committees, and $62,000 per campaign for contributions made by certain political party committees to Senate candidates. 

Former Indiana Congressional Candidate Pleads Guilty to Fabricating Campaign Contributions – Former Indiana congressional candidate Gabriel Whitley plead guilty to lying to the FEC by falsifying dozens of campaign contributions. Whitley ran in the 2024 Republican primary election for Indiana’s Seventh Congressional District. According to court documents, Whitley admitted to making up biographical details of 67 people so he could falsely file approximately $222,690 in contributions to his campaign. He also purportedly falsely claimed that he had loaned $100,000 to his own campaign. Upon sentencing, Whitley could face up to five years in prison.

White House Press Secretary’s Amended FEC Filings from Previous Congressional Run Allegedly Disclose Excess Campaign Contributions – In January, White House press secretary Karoline Leavitt’s 2022 congressional campaign committee submitted amended filings with the FEC disclosing that her unsuccessful campaign still owes more than $300,000 in unpaid debts. The revised reports also appear to raise questions about whether Leavitt’s campaign potentially took in hundreds of thousands of dollars in inappropriate donations that were never refunded. In 2022, campaign finance group End Citizens United filed a complaint with the FEC alleging that Leavitt’s campaign and its treasurer violated federal campaign finance laws by illegally accepting contributions over the legal limits and failing to refund the donations. In a statement, an End Citizens United spokesperson said Leavitt’s committee’s recently amended reports “clearly show that the complaint we filed with the FEC was correct.” 

District Court Issues Memorandum Opinion Finding FEC Conformed with Circuit Court Decision in CLC Case – The US District Court for the District of Columbia issued a Memorandum Opinion and Order in the case Campaign Legal Center, et al. v. FEC denying the plaintiffs’ motion to declare that the FEC had failed to conform to a remand order. In 2016, the Campaign Legal Center (“CLC”) filed an administrative complaint in the DC District Court alleging that Correct the Record spent nearly $6 million in coordination with Hillary for America during the lead-up to the 2016 presidential election. After the FEC declined to investigate the allegations and dismissed the complaint in 2019, CLC and one of its directors brought suit against the agency to challenge the dismissal. The DC District Court eventually held in December 2022 that the FEC’s dismissal was contrary to law. The DC Circuit affirmed that holding, and the matter was remanded to the Commission. On remand, the FEC once again dismissed the complaint, albeit on different grounds. The District Court’s Memorandum Opinion stated that while the court is “under no illusions that the FEC has behaved admirably throughout this winding saga or that [the] outcome advances the ideals of FECA’s drafters,” it concluded that the FEC conformed with the Circuit Court’s remand order and accordingly denied the plaintiffs’ motion.

FEC Commissioner Sean Cooksey Resigns – Sean Cooksey, a Trump-appointed FEC commissioner resigned on President Trump’s first day in office. Cooksey is one of three Republicans who were appointed to the FEC, with three Democrats also appointed to serve on the Commission. In a letter he wrote to then-President Biden, Cooksey wrote that he was particularly “pleased to have played a role in the Commission’s work repealing unnecessary regulations, lessening burdens on freedom of speech, and reforming agency procedures to respect due process.” In early February, FEC Commissioner Ellen Weintraub announced that she had received a letter from President Trump purporting to remove her from her position. 

Federal Lobbying & Ethics

Department of Homeland Security Abandons Policy on Political Activities – The Department of Homeland Security (“DHS”) rescinded a President George W. Bush-era policy that set extra restrictions on political activities by appointees and other senior personnel. “Any additional restrictions, as a matter of DHS policy, are not appropriate, especially in light of the important civic and First Amendment issues at stake,” former Acting Secretary Benjamine Huffman said in a memo dated January 20. The policy change has prompted pushback from previous DHS officials concerned about political influence within the Department under the Trump Administration, as the change may free up appointees to participate in some campaign events and other partisan activity. DHS officials did not immediately respond to a request for comment on the rescission.

Former Senator Bob Menendez Sentenced to 11 Years in Prison – Last summer, a federal jury found former US Senator Bob Menendez (D-NJ) guilty of bribery, fraud, and illegal foreign-agent offenses. In January, the former senator was sentenced to 11 years in prison. According to the US Attorney’s Office for the Southern District of New York, which prosecuted the case, this was the first case in which a US senator had been convicted of a crime that involved abusing his leadership position on a Senate committee, and the first in which any person had been convicted of serving as a foreign agent while in public office. 

House Ethics Committee’s Investigation of Representative Mike Kelly Continues – Representative Mike Kelly (R-PA), who recently started his eighth term in Congress, continues to be under a House ethics investigation that commenced in 2021. The House Committee on Ethics has been investigating whether Representative Kelly possessed privileged information when his wife bought $15,001 to $50,000 worth of stock in April 2020 in the owner of a steel plant in Pennsylvania. The Office of Congressional Ethics first launched a probe into the securities purchase in March 2021, and then voted 6-0 in July to send its findings to the House Committee on Ethics for further review. The House Committee on Ethics said in a report released in January that it “has not completed its investigation” of Kelly.

Foreign Agents Registration Act

Justice Department’s Memo on White Collar Enforcement Indicates FARA Will Not Be Prioritized – The Justice Department is scaling back enforcement of laws governing foreign lobbying transparency and bribes of foreign officials, Attorney General Pam Bondi signaled in January. The Criminal Division’s Foreign Corrupt Practices Act (“FCPA”) unit will prioritize investigations related to foreign bribery that facilitates the criminal operations of cartels and transnational criminal organizations, such as cases that involve bribery of foreign officials to “facilitate human smuggling and the trafficking of narcotics and firearms,” Bondi said in a memo. Separately, FARA enforcement “shall be limited to instances of alleged conduct similar to more traditional espionage by foreign government actors.” The Counterintelligence and Export Control Section, which houses the FARA unit, will “focus on civil enforcement, regulatory initiatives, and public guidance,” the memo said. The narrower emphases for the FCPA and FARA teams signals a dramatic pivot away from two growth areas of white collar enforcement over recent years.

Non-Federal Elections & Campaign Finance

Alaska’s Ranked Choice Voting Opponents Fined for Repeated Campaign Finance Violations – The Alaska Public Offices Commission has fined the backers of an anti-ranked choice voting ballot initiative nearly $157,000 on the heels of previous fines totaling around $90,000. After a hearing held in January, the Commission found that the groups leading the repeal effort had violated the state’s laws by filing late and inaccurate public disclosure reports. The Commission imposed the maximum allowed fines on the groups, stating that they have “proven themselves shockingly poor at complying with their reporting obligations throughout their campaign.” They have 30 days to pay the fines and comply with the order, or 15 days to submit a request for reconsideration.

Recent California Fair Political Practices Commission Decision Supports Legality of Multiple Affiliated Committees – After more than two years, California’s Fair Political Practices Commission (“FPPC”) has recently closed its investigation into a controversial campaign donor network, concluding that the group followed legal advice from the state and therefore did not violate contribution limits. Govern For California is a 16-chapter nonprofit organization that aims to counter the influence of organized labor in California. In 2022, the organization donated millions of dollars to dozens of legislative candidates. Several campaign finance experts told CalMatters that the structure of the chapters—which receive a majority of their funding funneled through a central committee and regularly make identically sized donations to the same candidates on the same days, using the same treasurer and law firm—pushes the boundaries of state law by potentially enabling donors to circumvent contribution limits. “After our investigation and review of the evidence, the Enforcement Division has found that Govern For California has followed the advice given to it by the Commission,” the FPPC stated in a no-action letter released in January. “Therefore, we are closing this matter without further action because the allegations have been disproven,” the letter concluded. 

Nevada Lawmakers To Consider Bill Requiring Disclosure of Use of AI in Political Ads – Nevada lawmakers will consider a bill requiring political campaigns to disclose when they use artificial intelligence (“AI”) in ads to alter the reality of a situation referenced in the communication. The bill would require a disclosure if AI or other digital software is used in a campaign ad to create realistic depictions of something that never actually happened. If the bill is signed into law, the phrase “This image has been manipulated” would need to be the largest text on a mailer and similar requirements would apply to newspaper, radio, and TV ads. The disclosure would only be required when “synthetic media” is used to create “a fundamentally different understanding” of the edited content. The law would carry a maximum $50,000 penalty for violators. 

Wyoming State Senator Introduces Resolution to Address Dark Money in Elections – In January, Wyoming State Senator Ed Cooper introduced Senate Joint Resolution 8, “Political Expenditures,” which asks Congress to propose a constitutional amendment to authorize states and Congress to establish reasonable limits on political contributions made to influence elections. The resolution provides, in part, that “reasonable limits on how money is used to influence the outcomes of elections may be wise to secure the interests of all citizens of Wyoming to be represented and participate in elections and self-government, to protect the integrity of elections and government against out-of-state and foreign interests and undue influence of wealthy special interests, whether of corporations, unions or other artificial entities and to ensure that elected representatives are aligned with the interests of actual constituents.” Senator Cooper was joined by 32 co-sponsors, evenly divided across the Senate and the House. The resolution is expected to be considered in the current legislative session. 

Michigan Republican Party Files Complaint Against Secretary of State Over Campaign Press Conference Venue – The Michigan Republican Party has filed a complaint against Secretary of State Jocelyn Benson, alleging that her choice of campaign press conference venue violated state election law. Benson formally announced her bid for governor in a press conference held in the lobby of the Richard H. Austin Building, a building that houses the Secretary of State’s offices. The Michigan GOP alleges that this choice of venue violated Michigan election law and submitted a complaint under the Michigan Campaign Finance Act. Benson’s campaign defended the choice of location under the First Amendment. 

Non-Federal Lobbying & Ethics

DC Council Expels Council Member Over Allegations He Took Bribes – The DC Council recently voted unanimously to expel council member Trayon White Sr. over federal allegations that he took $35,000 in bribes from a government contractor. White’s expulsion—the first imposed by the Council in its 51-year history—forced him to immediately surrender his seat representing Ward 8. White has plead not guilty to the federal bribery charge and is scheduled to go on trial next January. Prosecutors have maintained that they have video recordings that show him taking cash from the contractor. Despite the Council’s action, White is eligible to run in a special election to fill his seat and represent the Ward where he won reelection to a third term in November. 

NYC Mayoral Candidate Proposes Ban on Donations from Lobbyists and City Contractors – New York City mayoral candidate Scott Stringer is promising he would seek to ban City political candidates from accepting donations from lobbyists and City government contractors should he be elected. Stringer, a former City Comptroller who himself has taken donations from lobbyists and contractors over the decades, acknowledged in an interview that such a ban would make it harder for candidates to finance their campaigns. Stringer floated similar proposals during his failed 2021 mayoral run. His new plan is broader and includes, among other things, proposing to ban corporations with 1% or more foreign ownership stake from participating in local election spending via independent expenditures. The plan also contains proposals for tightening restrictions on interactions between lobbyists and City officials. 

Oregon Government Ethics Commission Votes to Investigate State Representative for Failing to Disclose Sources of Income – The Oregon Government Ethics Commission recently voted unanimously to move ahead with an investigation into State Representative Greg Smith based on allegations that he failed to follow a law that requires government officials to disclose some sources of business income. Smith, who did not attend the Commission’s meeting and did not immediately respond to an inquiry from the Capital Chronicle, acknowledged that he erred in not initially listing clients of his consulting firm on the economic interest statement he filed last year. He later amended the report. Commissioners said they expect the investigation will end with a letter of education, or a formal note from the Commission explaining the law and how to comply with it in the future. 

Constitutionality of New York’s Commission on Ethics and Lobbying in Government Argued Before State’s Top Court – When state officials created New York’s Commission on Ethics and Lobbying in Government (“COELIG”) in 2022, they billed it as an independent watchdog to replace an old ethics panel roundly criticized for doing too little to rein in public corruption and self-dealing. COELIG’s members are nominated by state officials and the nominations are reviewed by an independent review committee made up of law school deans. The governor cannot unilaterally remove Commission members. One of COELIG’s early high-profile actions was to investigate former Governor Andrew Cuomo over $5 million he had gotten for writing a book about the COVID-19 pandemic. Cuomo has been fighting COELIG’s attempt to force him to forfeit this money. A trial court judge ruled in 2023 that the law creating COELIG made it too independent from the governor under terms of the state constitution. A mid-level appeals court upheld the judge’s ruling last May. Cuomo’s attorney, Gregory Dubinsky, told New York Court of Appeals judges that the law creating COELIG “imbues this commission with sweeping, mighty law enforcement powers that are quintessential executive powers.” “We know what happens with an ethics commission when it’s not sufficiently independent. It is unable to do its job, it does not help protect the public trust in government,” countered the state’s attorney, Dustin Brockner. During the hearing, Brockner was peppered with sharp questions from judges who signaled doubts about the body’s constitutionality. 

Proposed North Dakota Measure Seeks to Create New Ethics Laws – A draft constitutional measure has been submitted to the North Dakota Secretary of State that, if approved, would change the status quo in the state capitol when it comes to elected legislators’ salaries, public records, and lobbying interests. Under the draft measure, all communications, written or otherwise, between legislators related to public business would be viewable by the public upon an open record upon request. In addition, any pay increases for the Legislature will not go into effect during the term of legislators who voted the pay raise into effect. If passed, legislators will also be required to disclose any potential conflicts of interest before voting on a bill, and former legislators would be prohibited from taking employment for a lobbying group within four years of leaving elected office. 

Former Oakland Mayor Indicted on Bribery Charges – The former mayor of Oakland, California, who was recalled by voters in November, was indicted by federal officials in January. The indictment accuses Sheng Thao of accepting bribes from powerful members of a local family who helped her win election. Thao and several others are listed as defendants on the 22-page indictment, which accuses them of a variety of offenses, including engaging in a conspiracy, bribery, and making false statements to authorities. Thao denied any wrongdoing after FBI agents raided her home in June and claimed she was not a target of an investigation. Oakland residents overwhelmingly voted to recall Thao in November, less than two years into her four-year term. 

Practice Pointers

This month’s Practice Pointers highlight the need for organizations engaged in federal activity, such as lobbying and contracting, to remain engaged over the next several weeks as the Trump Administration continues to release executive orders on a range of issues impacting executive branch agencies. The ability of federal agencies to perform their normal activities may be impacted as employee terminations and policy transitions continue to take place. Therefore, it is more important than ever to be mindful of how these changes impact your organization’s federal engagement. The Dentons Political Law Team, and the greater network of Dentons professionals, regularly advises clients on how to navigate the minefield of compliance concerns associated with federal executive branch transitions. Please do not hesitate to contact a member of our team should you have any questions regarding how to best position your organization’s engagement during this transitional period.

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