ActBlue’s Strategy to Tackle Foreign Donation Risks in Fundraising

Document with the word "Subpoena" in bold.

ActBlue’s admission to lacking preventive measures against illegal foreign donations has sparked significant scrutiny.

At a Glance

  • House Republicans subpoenaed ActBlue over foreign-sourced donations
  • ActBlue improved its security to comply with election laws
  • Legislation proposed to require stricter vetting of donations
  • Treasury investigates flagged transactions on ActBlue

Subpoenas and Investigations

House Republicans issued a subpoena to ActBlue to gather data regarding questionable transactions and donor vetting processes. Their aim is to ensure election integrity by addressing system loopholes, especially in verifying donor identities. Chairman Steil stated, “We cannot allow foreign actors to influence our elections through campaign financing. The Committee’s investigation uncovered that foreign actors might be taking advantage of ActBlue’s inadequate security protocols.”

This investigation coincides with a major review by the Treasury Department of ActBlue’s flagged transactions. These transactions, identified by banks as potentially suspicious, prompt regulatory action to avert illegal foreign influence in upcoming elections.

Strengthening Compliance

ActBlue has begun updating its security policies post-scrutiny from Republicans. Previously criticized for not requiring CVV numbers for donations, ActBlue’s changes mark a critical step toward addressing concerns. These updates aim to “close loopholes in our campaign finance system,” as warned by Bryan Steil.

Additions to security include verifying transaction details to prevent repeat issues. ActBlue’s recognition of these drawbacks underscores the need for digital fundraisers to maintain a transparent and legally compliant platform.

Legislative Actions and Broader Implications

Steil has initiated new legislation demanding stricter vetting processes for donors. Besides enforcing CVV verification, the legislation aims to bar contributions from prepaid gift cards. Although it passed the committee, a full House vote is still pending, emphasizing the urgency to safeguard electoral processes.

“Illegal and malicious conduct have no place in our elections. Ensuring all parties are complying with federal election law as we approach a presidential election is of utmost importance. By launching a new phase of our investigation into ActBlue, the Committee on House Administration has begun robust oversight of ActBlue’s lenient donor verification standards. I’m committed to ensuring Americans can have confidence in our elections and to preventing foreign or malicious actors from influencing American elections.” – Chairman Bryan Steil

State attorneys general from three states—Virginia, Wyoming, and Missouri—have begun similar probes, adding pressure for compliance. This highlights the importance of election transparency as we approach another presidential race. A recent committee hearing with the FEC emphasized the need for action and established precedents to protect the integrity of the democratic process.

Sources

1. Chairman Steil Launches Expanded Investigation into Online Political Donations Through ActBlue

2. Democrat platform ActBlue subpoenaed by House committee amid concerns foreign donors exploited security flaws

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