Introduction

Welcome to the March edition of the Political Law Playbook. This edition’s federal coverage features the Federal Election Commission’s (“FEC”) ruling that Senator Ted Cruz (R-TX) did not run afoul of federal campaign finance laws when his podcast syndicator made contributions to a Super PAC aligned with the Senator. This edition also outlines recently updated federal lobbyist registration thresholds under the Lobbying Disclosure Act (“LDA”). On the state level, this edition includes coverage of South Dakota’s newly enacted law that closes a loophole regarding the state’s contribution limits, and a Minnesota House of Representatives’ bill that, if enacted, would prohibit any organization that receives state funding from making political contributions or expending money for a political purpose. Also of note, New York’s Commission on Ethics and Lobbying in Government was adjudged by the state’s highest court to have been formed on a constitutional basis.

Federal Elections & Campaign Finance

FEC Clears Sen. Cruz of Wrongdoing Over Podcast Syndicator’s Donations to Super PAC – In a late January ruling, the FEC determined that US Senator Ted Cruz (R-TX) did not run afoul of federal campaign finance laws when the company that syndicates his podcast contributed nearly $1 million through a series of payments to a Super PAC supporting Senator Cruz’s reelection bid.  In a 5-1 decision, the agency dismissed a complaint filed by multiple campaign finance watchdog groups, which alleged that Senator Cruz could have violated campaign funding rules if he played any role in iHeartMedia’s contributions to the pro-Cruz Truth and Courage PAC.  Under federal law, candidates can only direct or solicit up to $5,000 in donations to Super PACs, which can otherwise raise unlimited sums to support candidates.  In its commentary on the matter, the FEC said that there was no available information to indicate that Senator Cruz solicited, directed, received, transferred, or spent the funds iHeart paid to the PAC.

New Lawsuit Challenges FEC Itemization of Certain Conduit Contributions – The FEC faces a new lawsuit challenging the constitutionality of federal campaign finance disclosure requirements for small-dollar donors who use online platforms to donate. The suit argues that such rules violate donors’ First Amendment rights to free speech and association. Under federal campaign finance laws, political committees must report all contributions received, but are required to itemize only those contributions that aggregate in excess of $200 within the calendar year (or election cycle, in the case of an authorized committee of a candidate for federal office). Itemized entries for such expenditures require disclosure of an individual contributor’s name, address, occupation, and employer. The conduit reporting rules require intermediaries or conduits to report to the Commission both the receipt of the initial contribution as well as the disbursement to the intended recipient. This conduit reporting requirement does not include a threshold for itemization of a contribution. The suit seeks to enjoin the FEC from applying federal disclosure requirements to contributions of $200 or less made through online fundraising platforms such as ActBlue and WinRed.

Sen. Padilla Leads Attempt to Reverse Firing of FEC Chair – In February, US Senator Alex Padilla (D-CA), along with ten other Democrat Senators, wrote a letter to President Trump demanding that he rescind his recent firing of FEC Chair Ellen Weintraub. The Senators also urged President Trump to pursue the process of consulting with the Senate on nominating replacements for both Weintraub and former Republican Commissioner Sean Cooksey, who recently resigned to take a role in the Trump Administration, as well as other future vacancies.

Federal Lobbying & Ethics

Federal Lobbyist Registration Thresholds Increased – The federal lobbying registration thresholds under the LDA for both lobbying firms and organizations employing in-house lobbyists have recently been increased. These threshold amounts are adjusted every four years based on changes to the Consumer Price Index. Now, an organization employing in-house lobbyists whose total expenses in connection with lobbying activities do not exceed and are not expected to exceed $16,000 in the quarterly period is not required to be registered. The previous level was $14,000. By comparison, a lobbying firm or individual lobbyist whose total income for matters relating to lobbying activities on behalf of a particular client does not exceed or is not expected to exceed $3,500 in the quarterly period is exempt from registration with respect to such client. The previous level for LDA purposes was $3,000.

Ethics Watchdog Accuses Sen. Whitehouse of Ethics Violation – In February, ethics watchdog organization the Foundation for Accountability & Civic Trust filed a complaint accusing US Senator Sheldon Whitehouse (D-RI) of violating Senate ethics policies by advocating for legislation to award his wife’s nonprofit $7 million. A spokesperson for Senator Whitehouse blamed “dark money” and Department of Government Efficiency head Elon Musk for the complaint filed against him in a statement to The National News Desk.

Non-Federal Elections & Campaign Finance

Judge Blocks Implementation of Minnesota Law Restricting Contributions and Expenditures from Corporations with Foreign Ownership – A federal judge has permanently blocked the implementation of a Minnesota campaign finance law that aims to limit political contributions from corporations with foreign ownership. The law at issue was passed as part of a sweeping elections reform package that also created an automatic voter registration system in the state. Governor Tim Walz signed the bill into law in May 2023. The Minnesota Chamber of Commerce sued the Minnesota Campaign Finance and Public Disclosure Board and Ramsey County Attorney John Choi to block the law from going into effect, arguing it was an unconstitutional infringement on Minnesota businesses’ right to free speech. 

Politicians Accused of Faking Mail-In Ballots in 2021 Mayoral Race in Philadelphia Suburb – Three politicians in a small municipality near Philadelphia were indicted in February based on allegations that they fraudulently tried to win a 2021 mayoral race by producing about three dozen false mail-in ballots. A federal grand jury accused Mohammed Nurul Hasan, Mohammed Munsur Ali, and Mohammed Rafikul Islam of conspiring to register people who live outside 1,200-population Millbourne as borough residents, to have mail-in ballots sent to themselves, and then to return the completed ballots to the Delaware County elections board. Hasan was serving as vice president of the borough council and had lost the Democrat mayoral primary in the heavily left-leaning area. Ali had won the primary for borough council, but Islam lost the Democrat primary that year in seeking to be reelected to the council. The alleged voter fraud involved Hasan’s ultimately failed pursuit of the mayorship as a write-in candidate in fall 2021. He lost the mayoral race in the general election, 165 to 138.

New Jersey Appeals Court Upholds Ban on Fusion Voting – In February, a New Jersey appeals court rejected a bid to declare a state law barring candidates from running under the banner of more than one party as unconstitutional. The Moderate Party, which lodged the suit to allow fusion voting in New Jersey, had argued the prohibition runs afoul of rights to free speech, political association, assembly, and equal protection provided by the state constitution. In response, however, the judges said the ban does not directly interfere with voters’ ability to vote for their preferred candidate. The party’s founder said it will appeal the decision to the state’s Supreme Court.

Kansas House Committee Advances Election-Reform Bill – The Kansas House Elections Committee recently approved a package of campaign finance reforms arising from disputes about the state’s definition of a political action committee, coordination among PACs and candidates, and contributions given by a person in the name of another. The Kansas Governmental Ethics Commission, which would be renamed the Kansas Public Disclosure Commission if the bill is enacted, has engaged for several years in political and legal battles with Kansas attorneys representing activists who bristle at the vague language contained in state election statutes and have challenged the constitutionality of the nine-member commission’s interpretation of laws. Josh Ney, who has represented Kansans in election lawsuits in state and federal court, told legislators that the passage of House Bill 2206 would bring Kansas into constitutional compliance on political speech and campaign finance matters by compelling the commission to apply new standards to determining what level of advocacy equates to the operation of a PAC and clarifying issues of coordination among PACs and candidates. 

Georgia Governor Race Raises Question About Campaign Spending – Georgia Attorney General Chris Carr raised $2.2 million for his 2026 gubernatorial bid in less than two months after announcing his candidacy in November. Lieutenant Governor Burt Jones, who could be Carr’s opponent in the 2026 Republican primary, raised $1.7 million for what Georgia calls a leadership committee, filings show. Questions have been raised, however, as to whether Jones can use that money in a gubernatorial primary showdown. In 2022, a federal judge ruled that incumbent governor Brian Kemp could not spend money from his leadership committee against his primary challenger. Carr and his campaign team assert that the ruling still applies, but it remains to be seen whether a challenge could occur

SD Governor Signs Bill Closing Loan Loophole in Campaign Finance Law – South Dakota Governor Larry Rhoden recently signed a bill into law that will close a loophole in the state’s campaign finance law. The bill was introduced as a response to an incident from the most recent election cycle. Toby Doeden reported a $100,000 contribution to his own Dakota First Action committee. The contribution exceeded the state’s $10,000 limit on individual contributions to political action committees. Doeden later amended the report, reclassifying the contribution as a loan. Existing state law allows loans to be forgiven, effectively providing a way to nullify contribution limits. The new law, however, provides that any loan, when combined with contributions from the same source, cannot exceed contribution limits in state law.

Idaho Legislators Attempt to Address Influx of Out-of-State Spending in New Campaign Finance Bills – Idaho’s Republican House leadership introduced a series of bills in February to address the influx of out-of-state spending with regard to Idaho elections. The first bill in the package – House Bill 306 – would establish a state “criminal libel” framework in Idaho that would make it a felony for someone to publish false statements about another person and establish a penalty structure for violations of up to a $100,000: imprisonment for up to five years, or both. The second piece of legislation proposed – House Bill 307 – would if enacted, allow the Idaho Secretary of State’s Office to investigate false claims against a candidate and publish its findings on its website. In addition to these proposals, a third bill – House Bill 308 – would require electioneering communications costing more than $1,000 to be reported within 24 hours closer to primary and general elections, and require political committees to upload materials they produce about a candidate or campaign to the Idaho Secretary of State’s website. Finally, House Bill 309 would require lobbyists to disclose expenses on a weekly basis during the legislative session and a monthly basis outside of session.

Colorado Appeals Court Says State Campaign Finance Enforcement Framework is Constitutional – In February, Colorado’s second-highest court agreed that the state’s current method of adjudicating campaign finance complaints is constitutional. For several years, state law has allowed any person to file a complaint alleging a campaign finance violation, which the Colorado Secretary of State’s Office then screens, decides whether to dismiss or investigate, and – when necessary – imposes a penalty. Campaign Integrity Watchdog, an entity that regularly brings campaign finance complaints in Colorado, argued to the Court of Appeals, however, that the process consolidated legislative, executive, and judicial functions within “a single, partisan elected office.” The Court of Appeals’ decision stated that “[w]hen, as here, the final agency decision is subject to judicial review, agency adjudicative procedures do not violate separation of powers principles.”

Minnesota House Passes Bill to Bar State-Funded Organizations from Making Political Contributions – Legislation that passed 130-3 in the Minnesota House of Representatives in February would, if enacted, prohibit any organization that receives state funding from making political contributions or expending money for a political purpose. The sponsoring state representative said the legislation will return political influence in the state to voters.

Updated Tennessee Campaign Contribution Limits Released – Tennessee’s Bureau of Ethics and Campaign Finance has released updated campaign contribution limits for the years 2025-2026. Under the new caps, the contribution limit for donations from individuals increased from $4,900 to $5,300 for statewide candidates and from $1,800 to $1,900 to legislative, other state, and local office candidates. The contribution limit applicable to PACs increased from $14,400 to $15,400 for statewide and House candidates. PAC limits were also increased from $28,800 to $30,800 for Senate candidates and from $9,400 to $10,100 for other state and local office candidates.

Non-Federal Lobbying & Ethics

New York’s Highest Court Declares Ethics Commission Constitutional – In February, the New York State Court of Appeals issued a 4-3 decision upholding the constitutionality of the Commission on Ethics and Lobbying in Government (“COELIG”). As covered in the February Edition of the Playbook, 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. The Court of Appeals, however, disagreed, finding that COELIG’s structure and the manner in which it appoints commissioners are constitutionally permissible under NY state law. As a result, COELIG may continue its work consistent with statutory provisions enacted in 2022.

Former Cincinnati Councilman P.G. Sittenfeld Loses Appeal of Public Corruption Conviction – A former Cincinnati, OH councilman could be heading back to prison after a three-judge panel of the US Court of Appeals for the Sixth Circuit ruled against his appeal. P.G. Sittenfeld had asked the courts to throw out his recent public corruption conviction on two specific grounds: (1) that the government had not presented enough evidence for a jury to reasonably rule an explicit quid pro quo had occurred in conjunction with his activities, and (2) that Sittenfeld's indictment “was constructively amended,” meaning the jury was given evidence pointing to crimes outside of Sittenfeld’s actual indictment. The Circuit Court judges ultimately ruled that the evidence presented at trial was enough for a jury to reasonably convict Sittenfeld on bribery and extortion charges, pointing to a recording of a conversation between Sittenfeld and an individual who was cooperating with the FBI.

Ten Government Officials Reprimanded for Violating Ohio Ethics Law in 2024 – Every year, the Dayton Daily News uses Ohio public records laws to obtain settlement agreements from the Ohio Ethics Commission. According to these records, in 2024, ten public officials serving on Ohio school boards or township, village and county boards were reprimanded by the Commission for violating state ethics law. These records and published reports also revealed that last year, the Commission’s investigative unit addressed more than 900 allegations related to misdemeanor or felony violations of ethics laws. A total of 174 cases were investigated— 128 of these emerged from villages, cities, townships, and counties. Ninety-six settlement and censure cases were closed.

North Dakota Bill Would Require More Frequent Financial Disclosure Reporting for State Officials – In February, the North Dakota Ethics Commission and Secretary of State’s Office presented a bill that would, if passed, require state officials to file financial disclosure forms on an annual basis. House Bill 1469 would also require the Secretary of State’s Office to publish the forms online. Currently, officials only need to submit one form when they file for candidacy or when they are appointed to office, and the documents are not available online. In addition to requiring annual financial disclosures, the bill would require officials to list any local governments or state agencies that the individual or their spouse have provided more than $5,000 worth of goods or services to, and any employer, business or trust in which the individual or their spouse has more than a 10% stake.

Practice Pointers

This edition’s Practice Pointers offers a reminder that the first quarterly federal lobbying filings are due next month, as well as those states that also require quarterly reports.  As this is an off-cycle election year, there are no quarterly FEC reports due.  For those organizations engaged in federal and state lobbying activity, next month will offer the first opportunity for organizations to test their revamped 2025 lobbyist reporting and compliance systems.  The Dentons Political Law Team has extensive experience assisting lobbying firms and employers in the creation and operation of internal lobbying compliance frameworks, and helps to stress test such frameworks and assist with the reporting function.  As such, please do not hesitate to reach out with any questions during this first quarterly reporting period.

Please click here to contact the authors of Political Law Playbook.