Senator Sheldon Whitehouse (D-RI) and Representative Jamie Raskin (D-MD).
Eric Lee | Graham Sloan | Bloomberg | Getty Images
Congressional Democrats aim to close what they characterize as a loophole created by the 2010 Citizens United Supreme Court decision that allows foreign groups to funnel money into U.S. elections.
The bill, sponsored by Rep. Jamie Raskin, D-Md., and Sen. Sheldon Whitehouse, D-Ir., and first shared with CNBC, would establish foreign ownership standards to determine which U.S. companies should be barred from campaigning, voting, or contributing to referendums.
“The Roberts court’s reckless decision in Citizens United continues to spell disaster for American democracy, allowing oligarchies and dictators around the world to influence American elections and undermine American institutions,” Raskin said in a statement, referring to Chief Justice John Roberts and the ruling that allows corporations and outside groups to spend unlimited amounts on U.S. elections.
The proposal would “root out corruption and ensure that elections are decided by the American people, not by foreign oligarchies,” Raskin said. The bill, called the Extracting Foreign Currency from American Elections Act, had more than 65 Democratic co-sponsors in the House and 11 in the Senate when it was introduced Wednesday. It faces an unlikely path through Congress, where Republicans control both chambers.
The bill comes amid a surge in foreign ownership of U.S. companies since the 1990s. And it follows the Supreme Court’s June ruling removing limits on how much political parties can spend in collaboration with political candidates.
It is already illegal for foreigners to donate to U.S. elections, but Raskin and Whitehouse’s proposal would extend current law to some U.S.-registered companies with foreign ownership above a certain threshold.
For example, entities based outside the United States that have 50% of their voting stock, total stock, or membership units owned by foreigners are prohibited from making political contributions. Also, corporate entities based in the United States that have voting stock, total stock, or 1% of the membership unit owned or controlled by a single foreign national are also prohibited from making political contributions.
Mr. Raskin and Mr. Whitehouse introduced nearly identical legislation in the 118th Congress, but it failed to reach a vote in either chamber.
“Citizens United’s disastrous decision allows foreign actors to exploit corrupt dark money channels that enable unlimited corporate spending,” the White House said in a statement. “We should get rid of the abhorrence once and for all, but this bill will at least protect our democracy from foreign adversaries who influence American elections from behind the scenes.”
The proposal comes on the heels of the House passing a bipartisan bill led by Rep. Brian Fitzpatrick, D-Pa., and Rep. Jared Golden, D-Maine, earlier this month, which aims to ban foreign contributions to local voting initiatives, referendums, and recall elections. The Senate has not yet voted on the bill.
“Voting is a means for free people to govern themselves. No foreign government, foreign person, or foreign interest should have any role in determining the laws under which Americans live,” Fitzpatrick said in a statement after the bill passed.
