House Committee Broadens Investigation into ActBlue, Seeks FEC Assistance to Deter Fraud

The House Administration Committee is broadening its inquiry into whether ActBlue, a Democratic fundraising platform, is circumventing or breaking federal campaign finance laws. The investigation, initiated last fall by Committee Chairman Rep. Bryan Steil (R-Wis.), follows claims that ActBlue was enabling the illegal transfer of contributions to political committees nationwide.

Initial Findings and Call for Change

The committee's preliminary findings revealed that ActBlue does not mandate online donors using a credit or debit card to provide a card verification value (CVV), a code designed to prevent fraudulent transactions. Rep. Steil is now calling on the Federal Election Commission (FEC) to rectify this. In a letter dated August 5 to FEC Chairman Sean Cooksey and Vice-Chair Ellen Weintraub, Steil appealed for the initiation of an emergency rulemaking process. This would oblige political campaigns to validate online donors' CVV codes and prohibit them from accepting donations via prepaid credit cards or gift cards.

Steil's Concerns

Steil expressed his concerns in the letter, stating, "This emergency rulemaking is necessary to reassure the American people that ActBlue is taking the necessary steps to protect its donors.” He added that the platform's current practices could potentially allow for foreign donations and could also be a means for bypassing campaign contribution limits through "straw donors". He concluded by stating that these issues pose a significant loophole to the transparency and integrity of the campaign donation process and an emergency rulemaking is needed to address these issues. Neither the committee nor ActBlue responded to requests for comment.

ActBlue's Response

ActBlue has dismissed the allegations against it as "frivolous and false accusations." The organization released a statement on August 2, asserting that the investigation is merely a partisan political attack aimed at undermining the power of Democratic and progressive small-dollar donors. They accused investigators of harassing staff and donors, and claimed that Republicans are resorting to political attacks and spreading false accusations because they cannot accept the political engagement and energy of Democrats.

Second Phase of Investigation

The second phase of the committee's probe was launched alongside Steil's request to the FEC. According to a committee news release, sources have recently come forward expressing concerns that ActBlue may have participated in illegal activities. These allegations include laundering illegal donations, including foreign ones, intentionally concealing the identities and locations of cardholders by not requiring CVV codes, and accepting suspiciously large or frequent donations from donors on fixed incomes or with no history of such behavior.

Steil's Proposed Solutions

To prevent such violations, Steil proposes passing legislation to mandate political committees to verify the CVV codes and addresses of donors using credit or debit cards. He also suggests banning political committees from accepting donations made via gift cards or prepaid credit cards and requiring campaigns to obtain donors' "affirmative consent" for recurring contributions.

State-Level Investigations

The attorneys general of Missouri, Virginia, and Wyoming are conducting their own investigations into ActBlue’s operations. The platform came under scrutiny in March 2023 after a report by O’Keefe Media Group highlighted unusual donation patterns among senior citizens who had used the platform to make political contributions. Some individuals were recorded as having made thousands of donations, in some cases totaling more than $200,000, in just a few years. However, when questioned about these donations, the seniors claimed they were unaware of them.

Bottom Line

The investigation into ActBlue raises important questions about the transparency and integrity of political donations. It's crucial for the public to have confidence in the systems that fund our political campaigns. What are your thoughts on this issue? Do you believe the allegations against ActBlue are valid, or do you see them as a political attack? Share your thoughts and this article with your friends. Don't forget to sign up for the Daily Briefing, delivered to your inbox every day at 6pm.