Overview
Title
To direct the Federal Election Commission to establish a program under which participating States shall provide individuals with vouchers which may be used to make contributions to candidates for election for the office of Representative in, or Delegate or Resident Commissioner to, the Congress, to amend the Federal Election Campaign Act of 1971 to establish a program to provide small dollar financing for candidates for election for the office of Representative in, or Delegate or Resident Commissioner to, the Congress, and for other purposes.
ELI5 AI
The bill wants to give people some special "money tickets" to help their favorite people running for Congress pay for things. It also hopes to make sure the money is used fairly and not just by rich people so that everyone can have a say in who should run the country.
Summary AI
The bill, identified as H.R. 8572, proposes a new program where the Federal Election Commission would distribute vouchers to individuals to fund candidates running for Congress. It aims to amend the Federal Election Campaign Act of 1971 to promote small-dollar financing of campaigns. The proposed voucher system would allow citizens to distribute funds to political candidates and includes measures to prevent fraud and ensure transparency in campaign financing. Additionally, the bill establishes administration rules, potential penalties for misuse, and methods for funding the initiative through special assessments on fines and penalties.
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AnalysisAI
The "Government by the People Act" is a proposed piece of legislation aimed at reforming the way election campaigns are financed for Congressional offices in the United States. It seeks to reduce the influence of large donations by promoting small-dollar contributions and introducing a pilot program where states provide individuals with vouchers to support candidates. The bill amends the Federal Election Campaign Act of 1971 and introduces numerous regulations and controls on campaign financing.
General Summary of the Bill
The bill aims to reshape political campaign financing in several key ways. Primarily, it introduces a voucher system that allows voters to support candidates with small financial contributions, known as "My Voice Vouchers." It also establishes a comprehensive framework for small-dollar financing of congressional campaigns, including matching government funds for such contributions to encourage candidates to rely on smaller, grassroots donations.
Another significant aspect of the bill is the establishment of the "Freedom From Influence Fund," which is designed to finance these initiatives through fines and penalties rather than taxpayer dollars. The bill includes strict guidelines for candidate eligibility, contribution and expenditure rules, and mechanisms for reporting and audits to ensure transparency and prevent misuse of funds.
Summary of Significant Issues
Among the highlighted concerns are the complexities and ambiguities within the bill. Terms like "qualified small dollar contributions" are undefined, leading to potential confusion about compliance. The selection process for participating states in the voucher pilot program is devoid of transparent criteria, raising concerns about impartiality. Additionally, fraud prevention measures in the voucher section may not be robust enough to prevent misuse.
The bill's language and structure are often intricate, which may hinder accessibility and understanding by the general public. The regulation of funds and auditing processes may lead to inefficiencies or mismanagement due to undefined criteria and deadlines, particularly for the Freedom From Influence Fund.
Impact on the Public
Broadly, the bill aims to democratize political contributions, making it easier for ordinary citizens to have a financial voice in elections through small-dollar donations and vouchers. This shift could lead to candidates focusing more on grassroots support, potentially decreasing the influence of large donors in politics, thereby fostering a political landscape that is more representative of the general public's interests.
For specific stakeholders, such as political candidates and state administrators, the bill brings both opportunities and challenges. Candidates who can successfully tap into small-dollar contributions could find new avenues for funding that are less dependent on affluent donors. However, the stringent eligibility and reporting requirements might pose hurdles, particularly for candidates with fewer resources or less experience.
States participating in the pilot program face potential financial constraints if the reimbursements from the federal fund are insufficient, which could impact program feasibility. Moreover, the ban on using taxpayer funds for the Freedom From Influence Fund could limit its financial stability and, by extension, the scale of its operations.
Overall, while the bill presents a well-intentioned effort to reform campaign financing, the effectiveness of its implementation will largely depend on clarifying its complex provisions and ensuring robust mechanisms for transparency and accountability.
Financial Assessment
The proposed bill, H.R. 8572, introduces a framework that involves several financial elements related to campaign financing for Congressional elections. This commentary will explore these financial components, their implications, and how they connect to identified issues.
Voucher Program and State Funding
The bill outlines the establishment of a voucher pilot program, whereby selected states will provide individuals with a $25 "My Voice Voucher". These vouchers can be allocated to candidates in increments of $5. States participating in the program will be reimbursed for their operational costs, up to a cap of $10,000,000 per state. This cap might disproportionately affect larger states, potentially leading to financial inequities among states, as noted in the issues.
The lack of detailed guidelines on what constitutes "reasonable costs" could lead to wasteful spending. Without clear definitions, states might interpret these expenses differently, potentially exploiting the system for financial gain. This ambiguity raises concerns about potential misuse of funds and the subsequent need for stricter financial oversight mechanisms.
Candidate Payment System
A significant financial aspect is the provision that allows candidates to receive payments equal to 600% of the qualified small-dollar contributions they secure. This feature aims to promote small-dollar financing but might inadvertently incentivize candidates to maximize contributions in questionable ways, potentially leading to excessive campaign spending or ethical dilemmas as they seek to maximize fundraising within the stipulated boundaries. The cap on aggregate payments is set at 50% of the average of the top 20 disbursements by winning candidates, ensuring that financial support is proportional to competitive campaign spending.
The definition of "qualified small dollar contributions" remains vague, causing potential compliance and legal clarity issues. These contributions must be between $1 and $200. There is also a limitation of $1,000 on total contributions that a participating candidate may accept from an individual, to prevent outsized influence from single entities, yet certain exceptions to this rule raise concerns about contribution loopholes.
Financial Oversight and Accountability
The complexity in how funds are managed and audited, as highlighted in the bill, could pose challenges to effective monitoring. The procedures for auditing contributions and expenditures, as stipulated in Section 543, might not be robust enough to prevent financial mismanagement or ethical lapses. The absence of detailed consequences for the Federal Election Commission (FEC) should they fail to meet regulatory deadlines exacerbates the potential for process delays and reduced efficacy in financial oversight.
There is also an emphasis on preventing the use of taxpayer funds, described in Section 541. This prohibition could limit the flexibility and resource availability of the Freedom From Influence Fund, responsible for disbursing payments under this initiative. The financial sustainability of the fund could be at risk if alternate funding sources are not robust enough to cover program needs.
Conclusion
Overall, the financial components of the bill focus on increasing transparency and reducing big money influence in elections. However, certain areas, such as the lack of clarity in definitions, potential loopholes, and insufficient oversight measures, present challenges that need addressing to effectively support this transition towards small-dollar campaign financing. The identified issues reflect concerns over how financial allocations might be managed, interpreted, and potentially misused, indicating the need for tighter regulatory controls and clearer legislative guidelines.
Issues
The reimbursement system in Section 101 for the pilot program may lead to wasteful spending due to undefined 'reasonable costs', which could be misinterpreted and misused financially without clear guidelines.
Section 501 allows candidates to receive payments equal to 600% of qualified small dollar contributions, potentially incentivizing excessive spending or manipulation of the system to maximize contributions, leading to financial and ethical concerns in campaign financing.
The term 'qualified small dollar contributions' used frequently throughout the bill is not clearly defined in Section 502, creating potential legal ambiguities and compliance issues.
The $10,000,000 cap on payments to states in Section 101 might not be adequately justified, potentially disadvantaging larger states, creating financial disparities, and affecting the effectiveness of the pilot programs.
The decision-making criteria for selecting 'participating states' in Section 101 lack transparency, potentially leading to bias or favoritism, raising significant ethical and legal concerns.
Potential loopholes in Section 521 for candidate contributions may lead to inequitable advantages, particularly due to the exception for campaign surpluses and personal funds that might be strategically used to circumvent contribution limits.
Complex legal language across the entire bill, such as in Sections 104 and 546, could deter public understanding and accessibility, underscoring the need for simplification to enhance civic engagement.
Fraud prevention mechanisms in Section 102 may be insufficiently robust, potentially leading to ethical and financial issues concerning the misuse of vouchers.
There is a lack of consequences for the Federal Election Commission if deadlines for regulation implementation in Section 206 are not met, posing potential legal and process-related issues that could delay the bill's objectives.
The complexity and potential ambiguity in audit procedures and criteria in Section 543 might hinder effective monitoring, leading to potential ethical and financial mismanagement issues.
Section 524 may present ambiguities regarding what constitutes an 'unspent balance,' which is critical for ethical financial management after elections.
The prohibition on taxpayer funds in Section 541 could potentially limit flexibility and resource availability for the Freedom From Influence Fund, raising financial stability concerns.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title; table of contents Read Opens in new tab
Summary AI
The “Government by the People Act” outlines a set of programs and rules focusing on encouraging small-dollar financing for congressional election campaigns. It includes details about voucher programs, candidate eligibility, campaign spending, and administrative provisions, aiming to increase transparency and reduce the influence of large donations in elections.
Money References
- TITLE II—SMALL DOLLAR FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNSSec. 201.
- “TITLE V—SMALL DOLLAR FINANCING OF CONGRESSIONAL ELECTION CAMPAIGNS“Subtitle A—Benefits“Sec. 501. Benefits for participating candidates.
- “Sec. 504. Qualified small dollar contributions described.
- Sec. 205. Study and report on small dollar financing program.
101. Establishment of pilot program Read Opens in new tab
Summary AI
The section describes the establishment of a pilot program by the Federal Election Commission to select three eligible states to run a voucher pilot program. Each participating state must meet specific criteria and requirements, such as fraud prevention and public information campaigns, and will receive reimbursement for their costs, with payments from the Freedom From Influence Fund, subject to certain limitations and conditions.
Money References
- (4) CAP ON AMOUNT OF PAYMENT.—The aggregate amount of payments made to any State with respect to any program operation period may not exceed $10,000,000.
102. Voucher program described Read Opens in new tab
Summary AI
The section describes a voucher program where states can give each eligible resident a $25 voucher called the "My Voice Voucher" to support candidates in federal elections. The program includes fraud prevention measures, oversight by a commission, and a public information campaign to ensure people know about the program.
Money References
- — (1) ELEMENTS DESCRIBED.—The elements of a voucher pilot program operated by a State under this part are as follows: (A) The State shall provide each qualified individual upon the individual’s request with a voucher worth $25 to be known as a “My Voice Voucher” during the election cycle which will be assigned a routing number and which at the option of the individual will be provided in either paper or electronic form.
- (B) Using the routing number assigned to the My Voice Voucher, the individual may submit the My Voice Voucher in either electronic or paper form to qualified candidates for election for the office of Representative in, or Delegate or Resident Commissioner to, the Congress and allocate such portion of the value of the My Voice Voucher in increments of $5 as the individual may select to any such candidate.
103. Reports Read Opens in new tab
Summary AI
The section requires states running a voucher pilot program to provide a preliminary report 6 months after the first election cycle and a final report 6 months after the program ends, analyzing the program's effectiveness. Additionally, the Federal Election Commission must study how well political voucher programs work in getting more people involved in elections and submit a report with recommendations to Congress within a year of the Act's passage.
104. Definitions Read Opens in new tab
Summary AI
In this section, "election cycle" is defined as the time between two general elections for Federal office. It also explains that the "program application period" is the election cycle following the act's enactment, the "program preparation period" follows the application period, and the "program operation period" covers the two cycles after the preparation period.
201. Benefits and eligibility requirements for candidates Read Opens in new tab
Summary AI
The section of the bill establishes a program for small-dollar financing of congressional election campaigns, where candidates can qualify for matching funds from the government if they receive numerous small donations. It outlines requirements for candidates and contributions, limits on the use of funds, the certification process, penalties for violations, and administrative provisions to ensure proper use and transparency of these funds.
Money References
- The Federal Election Campaign Act of 1971 (52 U.S.C. 30101 et seq.) is amended by adding at the end the following: “TITLE V—Small Dollar Financing of Congressional Election Campaigns “subtitle A—Benefits “SEC. 501. Benefits for participating candidates.
- amount of a payment made under this title shall be equal to 600 percent of the amount of qualified small dollar contributions received by the candidate since the most recent payment made to the candidate under this title during the election cycle, without regard to whether or not the candidate received any of the contributions before, during, or after the Small Dollar Democracy qualifying period applicable to the candidate under section 511(c).
- “(c) Limit on aggregate amount of payments.—The aggregate amount of payments made to a participating candidate with respect to an election cycle under this title may not exceed 50 percent of the average of the 20 greatest amounts of disbursements made by the authorized committees of any winning candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress during the most recent election cycle, rounded to the nearest $100,000.
- shall make a payment under section 501 to a candidate who is certified as a participating candidate upon receipt from the candidate of a request for a payment which includes— “(1) a statement of the number and amount of qualified small dollar contributions received by the candidate since the most recent payment made to the candidate under this title during the election cycle; “(2) a statement of the amount of the payment the candidate anticipates receiving with respect to the request; “(3) a statement of the total amount of payments the candidate has received under this title as of the date of the statement; and “(4) such other information and assurances as the Commission may require.
- unless each of the following applies: “(1) The amount of the qualified small dollar contributions in the statement referred to in subsection (a)(1) is equal to or greater than $5,000, unless the request is submitted during the 30-day period which ends on the date of a general election.
- Qualified small dollar contributions described.
- “(a) In general.—In this title, the term ‘qualified small dollar contribution’ means, with respect to a candidate and the authorized committees of a candidate, a contribution that meets the following requirements: “(1) The contribution is in an amount that is— “(A) not less than $1; and “(B) not more than $200
- “(3) The individual who makes the contribution does not make contributions to the candidate or the authorized committees of the candidate with respect to the election involved in an aggregate amount that exceeds the amount described in paragraph (1)(B), or any contribution to the candidate or the authorized committees of the candidate with respect to the election involved that otherwise is not a qualified small dollar contribution.
- “(b) Treatment of my voice vouchers.—Any payment received by a candidate and the authorized committees of a candidate which consists of a My Voice Voucher under the Government By the People Act of 2021 shall be considered a qualified small dollar contribution for purposes of this title, so long as the individual making the payment meets the requirements of paragraphs (2) and (3) of subsection (a).
- — “(A) IN GENERAL.—An individual who makes a qualified small dollar contribution to a candidate or the authorized committees of a candidate with respect to an election may not make any subsequent contribution to such candidate or the authorized committees of such candidate with respect to the election cycle which is not a qualified small dollar contribution.
- “(B) EXCEPTION FOR CONTRIBUTIONS TO CANDIDATES WHO VOLUNTARILY WITHDRAW FROM PARTICIPATION DURING QUALIFYING PERIOD.—Subparagraph (A) does not apply with respect to a contribution made to a candidate who, during the Small Dollar Democracy qualifying period described in section 511(c), submits a statement to the Commission under section 513(c) to voluntarily withdraw from participating in the program under this title.
- “(2) TREATMENT OF SUBSEQUENT NONQUALIFIED CONTRIBUTIONS.—If, notwithstanding the prohibition described in paragraph (1), an individual who makes a qualified small dollar contribution to a candidate or the authorized committees of a candidate with respect to an election makes a subsequent contribution to such candidate or the authorized committees of such candidate with respect to the election which is prohibited under paragraph (1) because it is not a qualified small dollar contribution
- In the case of a subsequent contribution which is not a qualified small dollar contribution because the contribution fails to meet the requirements of paragraph (3) of subsection (a) (relating to the aggregate amount of contributions made to the candidate or the authorized committees of the candidate by the individual making the contribution), the candidate may return an amount equal to the difference between the amount of the subsequent contribution and the amount described in paragraph (1)(B) of subsection (a).
- “(B) The candidate may retain the subsequent contribution, so long as not later than 2 weeks after receiving the subsequent contribution, the candidate remits to the Commission for deposit in the Freedom From Influence Fund under section 541 an amount equal to any payments received by the candidate under this title which are attributable to the qualified small dollar contribution made by the individual involved.
- “(3) NO EFFECT ON ABILITY TO MAKE MULTIPLE CONTRIBUTIONS.—Nothing in this section may be construed to prohibit an individual from making multiple qualified small dollar contributions to any candidate or any number of candidates, so long as each contribution meets each of the requirements of paragraphs (1), (2), and (3) of subsection (a).
- — “(1) NOTIFICATION.—Each authorized committee of a candidate who seeks to be a participating candidate under this title shall provide the following information in any materials for the solicitation of contributions, including any internet site through which individuals may make contributions to the committee: “(A) A statement that if the candidate is certified as a participating candidate under this title, the candidate will receive matching payments in an amount which is based on the total amount of qualified small dollar contributions received. “
- (B) A statement that a contribution which meets the requirements set forth in subsection (a) shall be treated as a qualified small dollar contribution under this title.
- “(C) A statement that if a contribution is treated as qualified small dollar contribution under this title, the individual who makes the contribution may not make any contribution to the candidate or the authorized committees of the candidate during the election cycle which is not a qualified small dollar contribution.
- “(2) ALTERNATIVE METHODS OF MEETING REQUIREMENTS.—An authorized committee may meet the requirements of paragraph (1)— “(A) by including the information described in paragraph (1) in the receipt provided under section 512(b)(3) to a person making a qualified small dollar contribution; or “(B) by modifying the information it provides to persons making contributions which is otherwise required under title III (including information it provides through the internet).
- “(4) Not later than the last day of the Small Dollar Democracy qualifying period, the candidate files with the Commission an affidavit signed by the candidate and the treasurer of the candidate's principal campaign committee declaring that the candidate— “(A) has complied and, if certified, will comply with the contribution and expenditure requirements of section 521; “(B) if certified, will run only as a participating candidate for all elections for the office that such candidate is seeking during that election cycle; and “(C) has either qualified or will take steps to qualify under State law to be on the ballot.
- “(c) Small Dollar Democracy qualifying period Defined.—The term ‘Small Dollar Democracy qualifying period’ means, with respect to any candidate for an office, the 180-day period (during the election cycle for such office) which begins on the date on which the candidate files a statement of intent under section 511(a)(1), except that such period may not continue after the date that is 30 days before the date of the general election for the office.
- “(a) Receipt of qualified small dollar contributions.—A candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress meets the requirement of this section if, during the Small Dollar Democracy qualifying period described in section 511(c), each of the following occurs:
- “(1) Not fewer than 1,000 individuals make a qualified small dollar contribution to the candidate.
- “(2) The candidate obtains a total dollar amount of qualified small dollar contributions which is equal to or greater than $50,000.
- “(b) Requirements relating to receipt of qualified small dollar contribution.—Each qualified small dollar contribution— “(1) may be made by means of a personal check, money order, debit card, credit card, electronic payment account, or any other method deemed appropriate by the Commission; “(2) shall be accompanied by a signed statement (or, in the case of a contribution made online or through other electronic means, an electronic equivalent) containing the contributor’s name and address; and “(3) shall be acknowledged by a receipt that is sent to the contributor with a copy (in paper or electronic form) kept by the candidate for the Commission.
- “(c) Voluntary withdrawal from participating during qualifying period.—At any time during the Small Dollar Democracy qualifying period described in section 511(c), a candidate may withdraw from participation in the program under this title by submitting to the Commission a statement of withdrawal (without regard to whether or not the Commission has certified the candidate as a participating candidate under this title as of the time the candidate submits such statement), so long as the candidate has not submitted a request for payment under section 502.
- “(1) Qualified small dollar contributions.
- “(4) Subject to subsection (b), personal funds of the candidate or of any immediate family member of the candidate (other than funds received through qualified small dollar contributions).
- “(5) Contributions from individuals who are otherwise permitted to make contributions under this Act, subject to the applicable limitations of section 315, except that the aggregate amount of contributions a participating candidate may accept from any individual with respect to any election during the election cycle may not exceed $1,000.
- candidate who is certified as a participating candidate may use personal funds (including personal funds of any immediate family member of the candidate) so long as— “(A) the aggregate amount used with respect to the election cycle (including any period of the cycle occurring prior to the candidate’s certification as a participating candidate) does not exceed $50,000; and “(B) the funds are used only for making direct payments for the receipt of goods and services which constitute authorized expenditures in connection with the election cycle involved. “
- “(1) EXCEPTION FOR CONTRIBUTIONS RECEIVED PRIOR TO FILING OF STATEMENT OF INTENT.—A candidate who has accepted contributions that are not described in subsection (a) is not in violation of subsection (a), but only if all such contributions are— “(A) returned to the contributor; “(B) submitted to the Commission for deposit in the Freedom From Influence Fund established under section 541; or “(C) spent in accordance with paragraph (2). “(2) EXCEPTION FOR EXPENDITURES MADE PRIOR TO FILING OF STATEMENT OF INTENT.—If a candidate has made expenditures prior to the date the candidate files a statement of intent under section 511(a)(1) that the candidate is prohibited from making under subsection (a) or subsection (b), the candidate is not in violation of such subsection if the aggregate amount of the prohibited expenditures is less than the amount referred to in section 512(a)(2) (relating to the total dollar amount of qualified small dollar contributions which the candidate is required to obtain) which is applicable to the candidate.
- — “(1) MANDATORY IDENTIFICATION OF INDIVIDUALS MAKING QUALIFIED SMALL DOLLAR CONTRIBUTIONS.—Each authorized committee of a participating candidate under this title shall, in accordance with section 304(b)(3)(A), include in the reports the committee submits under section 304 the identification of each person who makes a qualified small dollar contribution to the committee.
- (b) Permitting candidates participating in next election cycle To retain portion of unspent funds.—Notwithstanding subsection (a), a participating candidate may withhold not more than $100,000 from the amount required to be remitted under subsection (a) if the candidate files a signed affidavit with the Commission that the candidate will seek certification as a participating candidate with respect to the next election cycle, except that the candidate may not use any portion of the amount withheld until the candidate is certified as a participating candidate with respect to that next election cycle.
- If the candidate fails to seek certification as a participating candidate prior to the last day of the Small Dollar Democracy qualifying period for the next election cycle (as described in section 511), or if the Commission notifies the candidate of the Commission’s determination does not meet the requirements for certification as a participating candidate with respect to such cycle, the candidate shall immediately remit to the Commission the amount withheld.
- “(3) During the enhanced support qualifying period, the candidate receives qualified small dollar contributions in a total amount of not less than $50,000.
- “(4) During the enhanced support qualifying period, the candidate submits to the Commission a request for the payment which includes— “(A) a statement of the number and amount of qualified small dollar contributions received by the candidate during the enhanced support qualifying period; “(B) a statement of the amount of the payment the candidate anticipates receiving with respect to the request; and “(C) such other information and assurances as the Commission may require. “
- “(a) In General.—Subject to subsection (b), the amount of the additional payment made to an eligible candidate under this subtitle shall be an amount equal to 50 percent of— “(1) the amount of the payment made to the candidate under section 501(b) with respect to the qualified small dollar contributions which are received by the candidate during the enhanced support qualifying period (as included in the request submitted by the candidate under section 532(a)(4)); or “(2) in the case of a candidate who is not eligible to receive a payment under section 501(b) with respect to such qualified small dollar contributions because the candidate has reached the limit on the aggregate amount of payments under subtitle A for the election cycle under section 501(c), the amount of the payment which would have been made to the candidate under section 501(b) with respect to such qualified small dollar contributions if the candidate had not reached such limit.
- “(b) Limit.—The amount of the additional payment determined under subsection (a) with respect to a candidate may not exceed $500,000.
- “(a) Review of Small Dollar financing.
- — “(1) IN GENERAL.—After each regularly scheduled general election for Federal office, the Comptroller General of the United States shall conduct a comprehensive review of the Small Dollar financing program under this title, including— “(A) the maximum and minimum dollar amounts of qualified small dollar contributions under section 504; “(B) the number and value of qualified small dollar contributions a candidate is required to obtain under section 512(a) to be eligible for certification as a participating candidate; “(C) the maximum amount of payments a candidate may receive under this title; “(D) the overall satisfaction of participating candidates and the American public with the program; “(E) the extent to which the program increased opportunities for participation by candidates of diverse racial, gender, and socio-economic backgrounds; and “(F) such other matters relating to financing of campaigns as the Comptroller General determines are appropriate. “(2) CRITERIA FOR REVIEW.—In conducting the review under subparagraph (A), the Comptroller General shall consider the following: “(A) QUALIFIED SMALL DOLLAR CONTRIBUTIONS.—Whether the number and dollar amounts of qualified small dollar contributions required strikes an appropriate balance regarding the importance of voter involvement, the need to assure adequate incentives for participating, and fiscal responsibility, taking into consideration the number of primary and general election participating candidates, the electoral performance of those candidates, program cost, and any other information the Comptroller General determines is appropriate. “(B) REVIEW OF PAYMENT LEVELS.—Whether the totality of the amount of funds allowed to be raised by participating candidates (including through qualified small dollar contributions) and payments under this title are sufficient for voters in each State to learn about the candidates to cast an informed vote, taking into account the historic amount of spending by winning candidates, media costs, primary election dates, and any other information the Comptroller General determines is appropriate.
- “(3) RECOMMENDATIONS FOR ADJUSTMENT OF AMOUNTS.—Based on the review conducted under subparagraph (A), the Comptroller General may recommend to Congress adjustments of the following amounts: “(A) The number and value of qualified small dollar contributions a candidate is required to obtain under section 512(a) to be eligible for certification as a participating candidate. “(B) The maximum amount of payments a candidate may receive under this title.
- “The Commission shall prescribe regulations to carry out the purposes of this title, including regulations to establish procedures for— “(1) verifying the amount of qualified small dollar contributions with respect to a candidate; “(2) effectively and efficiently monitoring and enforcing the limits on the raising of qualified small dollar contributions; “(3) effectively and efficiently monitoring and enforcing the limits on the use of personal funds by participating candidates; and “(4) monitoring the use of allocations from the Freedom From Influence Fund established under section 541 and matching contributions under this title through audits of not fewer than 1⁄10 (or, in the case of the first 3 election cycles during which the program under this title is in effect, not fewer than 1⁄3 ) of all participating candidates or other mechanisms.
- “(b) Amounts described.—The amounts described in this subsection are as follows: “(1) The amount referred to in section 502(b)(1) (relating to the minimum amount of qualified small dollar contributions included in a request for payment). “
- (2) The amounts referred to in section 504(a)(1) (relating to the amount of a qualified small dollar contribution).
- “(3) The amount referred to in section 512(a)(2) (relating to the total dollar amount of qualified small dollar contributions).
- “(7) The amount referred to in section 532(a)(3) (relating to the total dollar amount of qualified small dollar contributions for a candidate seeking an additional payment under subtitle D).
501. Benefits for participating candidates Read Opens in new tab
Summary AI
A candidate for a Congressional office, who is certified as a participating candidate, is eligible to receive payments amounting to 600% of the small dollar contributions they've gotten since the last payment. However, there is a cap on the total payments a candidate can receive during an election cycle, which is set at 50% of the average expenditures of the 20 most spending winning candidates from the previous cycle, rounded to the nearest $100,000.
Money References
- (b) Amount of payment.—The amount of a payment made under this title shall be equal to 600 percent of the amount of qualified small dollar contributions received by the candidate since the most recent payment made to the candidate under this title during the election cycle, without regard to whether or not the candidate received any of the contributions before, during, or after the Small Dollar Democracy qualifying period applicable to the candidate under section 511(c). (c) Limit on aggregate amount of payments.—The aggregate amount of payments made to a participating candidate with respect to an election cycle under this title may not exceed 50 percent of the average of the 20 greatest amounts of disbursements made by the authorized committees of any winning candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress during the most recent election cycle, rounded to the nearest $100,000.
502. Procedures for making payments Read Opens in new tab
Summary AI
The text outlines the process for candidates to request and receive payments as certified participants under a specific section of a bill. Candidates must submit a statement detailing their small donations and anticipated payment amounts, with certain restrictions and timing guidelines for these requests, ensuring payments are made promptly within two business days.
Money References
- (a) In general.—The Commission shall make a payment under section 501 to a candidate who is certified as a participating candidate upon receipt from the candidate of a request for a payment which includes— (1) a statement of the number and amount of qualified small dollar contributions received by the candidate since the most recent payment made to the candidate under this title during the election cycle; (2) a statement of the amount of the payment the candidate anticipates receiving with respect to the request; (3) a statement of the total amount of payments the candidate has received under this title as of the date of the statement; and (4) such other information and assurances as the Commission may require. (b) Restrictions on submission of requests.—A candidate may not submit a request under subsection (a) unless each of the following applies: (1) The amount of the qualified small dollar contributions in the statement referred to in subsection (a)(1) is equal to or greater than $5,000, unless the request is submitted during the 30-day period which ends on the date of a general election.
503. Use of funds Read Opens in new tab
Summary AI
A candidate must use campaign funds provided under this title only to directly pay for goods and services that are allowed to be used for campaign purposes. These funds cannot be used for legal expenses, fines, or any penalties related to disputes or claims.
504. Qualified small dollar contributions described Read Opens in new tab
Summary AI
The section defines "qualified small dollar contribution" as a direct donation by an individual to a candidate or their authorized committees, ranging from $1 to $200. It outlines the eligibility conditions for such contributions, restrictions on further nonqualified contributions during the election cycle, and the necessary disclosure statements candidates must provide when soliciting these contributions.
Money References
- SEC. 504. Qualified small dollar contributions described.
- (a) In general.—In this title, the term “qualified small dollar contribution” means, with respect to a candidate and the authorized committees of a candidate, a contribution that meets the following requirements: (1) The contribution is in an amount that is— (A) not less than $1; and (B) not more than $200. (2)(A) The contribution is made directly by an individual to the candidate or an authorized committee of the candidate and is not— (i) forwarded from the individual making the contribution to the candidate or committee by another person; or (ii) received by the candidate or committee with the knowledge that the contribution was made at the request, suggestion, or recommendation of another person. (B) In this paragraph— (i) the term “person” does not include an individual (other than an individual described in section 304(i)(7) of the Federal Election Campaign Act of 1971), a political committee of a political party, or any political committee which is not a separate segregated fund described in section 316(b) of the Federal Election Campaign Act of 1971 and which does not make contributions or independent expenditures, does not engage in lobbying activity under the Lobbying Disclosure Act of 1995 (2 U.S.C. 1601 et seq.), and is not established by, controlled by, or affiliated with a registered lobbyist under such Act, an agent of a registered lobbyist under such Act, or an organization which retains or employs a registered lobbyist under such Act; and (ii) a contribution is not “made at the request, suggestion, or recommendation of another person” solely on the grounds that the contribution is made in response to information provided to the individual making the contribution by any person, so long as the candidate or authorized committee does not know the identity of the person who provided the information to such individual.
- (3) The individual who makes the contribution does not make contributions to the candidate or the authorized committees of the candidate with respect to the election involved in an aggregate amount that exceeds the amount described in paragraph (1)(B), or any contribution to the candidate or the authorized committees of the candidate with respect to the election involved that otherwise is not a qualified small dollar contribution.
- (b) Treatment of my voice vouchers.—Any payment received by a candidate and the authorized committees of a candidate which consists of a My Voice Voucher under the Government By the People Act of 2021 shall be considered a qualified small dollar contribution for purposes of this title, so long as the individual making the payment meets the requirements of paragraphs (2) and (3) of subsection (a).
- — (A) IN GENERAL.—An individual who makes a qualified small dollar contribution to a candidate or the authorized committees of a candidate with respect to an election may not make any subsequent contribution to such candidate or the authorized committees of such candidate with respect to the election cycle which is not a qualified small dollar contribution.
- (B) EXCEPTION FOR CONTRIBUTIONS TO CANDIDATES WHO VOLUNTARILY WITHDRAW FROM PARTICIPATION DURING QUALIFYING PERIOD.—Subparagraph (A) does not apply with respect to a contribution made to a candidate who, during the Small Dollar Democracy qualifying period described in section 511(c), submits a statement to the Commission under section 513(c) to voluntarily withdraw from participating in the program under this title.
- (2) TREATMENT OF SUBSEQUENT NONQUALIFIED CONTRIBUTIONS.—If, notwithstanding the prohibition described in paragraph (1), an individual who makes a qualified small dollar contribution to a candidate or the authorized committees of a candidate with respect to an election makes a subsequent contribution to such candidate or the authorized committees of such candidate with respect to the election which is prohibited under paragraph (1) because it is not a qualified small dollar contribution, the candidate may take one of the following actions: (A) Not later than 2 weeks after receiving the contribution, the candidate may return the subsequent contribution to the individual.
- In the case of a subsequent contribution which is not a qualified small dollar contribution because the contribution fails to meet the requirements of paragraph (3) of subsection (a) (relating to the aggregate amount of contributions made to the candidate or the authorized committees of the candidate by the individual making the contribution), the candidate may return an amount equal to the difference between the amount of the subsequent contribution and the amount described in paragraph (1)(B) of subsection (a).
- (B) The candidate may retain the subsequent contribution, so long as not later than 2 weeks after receiving the subsequent contribution, the candidate remits to the Commission for deposit in the Freedom From Influence Fund under section 541 an amount equal to any payments received by the candidate under this title which are attributable to the qualified small dollar contribution made by the individual involved.
- (3) NO EFFECT ON ABILITY TO MAKE MULTIPLE CONTRIBUTIONS.—Nothing in this section may be construed to prohibit an individual from making multiple qualified small dollar contributions to any candidate or any number of candidates, so long as each contribution meets each of the requirements of paragraphs (1), (2), and (3) of subsection (a). (d) Notification requirements for candidates.
- — (1) NOTIFICATION.—Each authorized committee of a candidate who seeks to be a participating candidate under this title shall provide the following information in any materials for the solicitation of contributions, including any internet site through which individuals may make contributions to the committee: (A) A statement that if the candidate is certified as a participating candidate under this title, the candidate will receive matching payments in an amount which is based on the total amount of qualified small dollar contributions received. (B) A statement that a contribution which meets the requirements set forth in subsection (a) shall be treated as a qualified small dollar contribution under this title. (C) A statement that if a contribution is treated as qualified small dollar contribution under this title, the individual who makes the contribution may not make any contribution to the candidate or the authorized committees of the candidate during the election cycle which is not a qualified small dollar contribution. (2) ALTERNATIVE METHODS OF MEETING REQUIREMENTS.—An authorized committee may meet the requirements of paragraph (1)— (A) by including the information described in paragraph (1) in the receipt provided under section 512(b)(3) to a person making a qualified small dollar contribution; or (B) by modifying the information it provides to persons making contributions which is otherwise required under title III (including information it provides through the internet). ---
511. Eligibility Read Opens in new tab
Summary AI
A candidate running for Congress can become a participating candidate if they meet several requirements, including filing a statement of intent, meeting certain qualifications, and agreeing to campaign rules. They must also get on the ballot through their party or state law. The "Small Dollar Democracy qualifying period" is 180 days starting when the intent is filed but must end 30 days before the general election.
Money References
- (a) In general.—A candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress is eligible to be certified as a participating candidate under this title with respect to an election if the candidate meets the following requirements: (1) The candidate files with the Commission a statement of intent to seek certification as a participating candidate. (2) The candidate meets the qualifying requirements of section 512. (3) The candidate files with the Commission a statement certifying that the authorized committees of the candidate meet the requirements of section 504(d). (4) Not later than the last day of the Small Dollar Democracy qualifying period, the candidate files with the Commission an affidavit signed by the candidate and the treasurer of the candidate's principal campaign committee declaring that the candidate— (A) has complied and, if certified, will comply with the contribution and expenditure requirements of section 521; (B) if certified, will run only as a participating candidate for all elections for the office that such candidate is seeking during that election cycle; and (C) has either qualified or will take steps to qualify under State law to be on the ballot.
- (b) General election.—Notwithstanding subsection (a), a candidate shall not be eligible to be certified as a participating candidate under this title for a general election or a general runoff election unless the candidate’s party nominated the candidate to be placed on the ballot for the general election or the candidate is otherwise qualified to be on the ballot under State law. (c) Small Dollar Democracy qualifying period Defined.—The term “Small Dollar Democracy qualifying period” means, with respect to any candidate for an office, the 180-day period (during the election cycle for such office) which begins on the date on which the candidate files a statement of intent under section 511(a)(1), except that such period may not continue after the date that is 30 days before the date of the general election for the office. ---
512. Qualifying requirements Read Opens in new tab
Summary AI
Candidates running for the U.S. House of Representatives or similar positions must secure contributions from at least 1,000 people, raising a minimum of $50,000 in small donations to qualify during a specific period. Each donation must be traceable with proper documentation, and the Commission is responsible for verifying the legitimacy of these contributions.
Money References
- (a) Receipt of qualified small dollar contributions.—A candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress meets the requirement of this section if, during the Small Dollar Democracy qualifying period described in section 511(c), each of the following occurs: (1) Not fewer than 1,000 individuals make a qualified small dollar contribution to the candidate.
- (2) The candidate obtains a total dollar amount of qualified small dollar contributions which is equal to or greater than $50,000.
- (b) Requirements relating to receipt of qualified small dollar contribution.—Each qualified small dollar contribution— (1) may be made by means of a personal check, money order, debit card, credit card, electronic payment account, or any other method deemed appropriate by the Commission; (2) shall be accompanied by a signed statement (or, in the case of a contribution made online or through other electronic means, an electronic equivalent) containing the contributor’s name and address; and (3) shall be acknowledged by a receipt that is sent to the contributor with a copy (in paper or electronic form) kept by the candidate for the Commission. (c) Verification of contributions.—The Commission shall establish procedures for the auditing and verification of the contributions received and expenditures made by participating candidates under this title, including procedures for random audits, to ensure that such contributions and expenditures meet the requirements of this title. ---
513. Certification Read Opens in new tab
Summary AI
The section outlines the certification process for candidates seeking to be recognized as "participating candidates" in an election. It details how the Commission certifies or revokes such status based on the candidate's compliance with requirements, and allows for penalties, including barring candidates from future elections if they have multiple revocations. The section also allows candidates to withdraw voluntarily during the qualifying period.
Money References
- (4) PROHIBITING PARTICIPATION IN FUTURE ELECTIONS FOR CANDIDATES WITH MULTIPLE REVOCATIONS.—If the Commission revokes the certification of an individual as a participating candidate under this title pursuant to subparagraph (A) or subparagraph (C) of paragraph (1) a total of 3 times, the individual may not be certified as a participating candidate under this title with respect to any subsequent election. (c) Voluntary withdrawal from participating during qualifying period.—At any time during the Small Dollar Democracy qualifying period described in section 511(c), a candidate may withdraw from participation in the program under this title by submitting to the Commission a statement of withdrawal (without regard to whether or not the Commission has certified the candidate as a participating candidate under this title as of the time the candidate submits such statement), so long as the candidate has not submitted a request for payment under section 502. (d) Participating Candidate defined.—In this title, a “participating candidate” means a candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress who is certified under this section as eligible to receive benefits under this title.
521. Contribution and expenditure requirements Read Opens in new tab
Summary AI
The section outlines the rules for campaign contributions and expenditures for candidates participating in elections. It specifies the sources from which candidates can receive contributions, limits on personal funds usage, exceptions for certain prior contributions and expenditures, rules for coordinated party expenditures, and prohibits participating candidates from forming joint fundraising committees or associating with leadership PACs during the election cycle.
Money References
- (a) Permitted sources of contributions and expenditures.—Except as provided in subsection (c), a participating candidate with respect to an election shall, with respect to all elections occurring during the election cycle for the office involved, accept no contributions from any source and make no expenditures from any amounts, other than the following: (1) Qualified small dollar contributions.
- (3) Contributions from political committees established and maintained by a national or State political party, subject to the applicable limitations of section 315. (4) Subject to subsection (b), personal funds of the candidate or of any immediate family member of the candidate (other than funds received through qualified small dollar contributions). (5) Contributions from individuals who are otherwise permitted to make contributions under this Act, subject to the applicable limitations of section 315, except that the aggregate amount of contributions a participating candidate may accept from any individual with respect to any election during the election cycle may not exceed
- $1,000.
- may use personal funds (including personal funds of any immediate family member of the candidate) so long as— (A) the aggregate amount used with respect to the election cycle (including any period of the cycle occurring prior to the candidate’s certification as a participating candidate) does not exceed $50,000; and (B) the funds are used only for making direct payments for the receipt of goods and services which constitute authorized expenditures in connection with the election cycle involved.
- , the term “immediate family member” means, with respect to a candidate— (A) the candidate’s spouse; (B) a child, stepchild, parent, grandparent, brother, half-brother, sister, or half-sister of the candidate or the candidate’s spouse; and (C) the spouse of any person described in subparagraph (B). (c) Exceptions.— (1) EXCEPTION FOR CONTRIBUTIONS RECEIVED PRIOR TO FILING OF STATEMENT OF INTENT.—A candidate who has accepted contributions that are not described in subsection (a) is not in violation of subsection (a), but only if all such contributions are— (A) returned to the contributor; (B) submitted to the Commission for deposit in the Freedom From Influence Fund established under section 541; or (C) spent in accordance with paragraph (2). (2) EXCEPTION FOR EXPENDITURES MADE PRIOR TO FILING OF STATEMENT OF INTENT.—If a candidate has made expenditures prior to the date the candidate files a statement of intent under section 511(a)(1) that the candidate is prohibited from making under subsection (a) or subsection (b), the candidate is not in violation of such subsection if the aggregate amount of the prohibited expenditures is less than the amount referred to in section 512(a)(2) (relating to the total dollar amount of qualified small dollar contributions which the candidate is required to obtain) which is applicable to the candidate. (3) EXCEPTION FOR CAMPAIGN SURPLUSES FROM A PREVIOUS ELECTION.—Notwithstanding paragraph (1), unexpended contributions received by the candidate or an authorized committee of the candidate with respect to a previous election may be retained, but only if the candidate places the funds in escrow and refrains from raising additional funds for or spending funds from that account during the election cycle in which a candidate is a participating candidate. (4) EXCEPTION FOR CONTRIBUTIONS RECEIVED BEFORE THE EFFECTIVE DATE OF THIS TITLE.—Contributions received and expenditures made by the candidate or an authorized committee of the candidate prior to the effective date of this title shall not constitute a violation of subsection (a) or (b).
522. Administration of campaign Read Opens in new tab
Summary AI
Each authorized committee of a participating candidate must maintain separate accounting for different types of contributions and payments received under this title. Additionally, the committee is required to identify individuals making qualified small dollar contributions and ensure that all related financial information is accessible to the public online in a searchable and downloadable format.
Money References
- — (1) MANDATORY IDENTIFICATION OF INDIVIDUALS MAKING QUALIFIED SMALL DOLLAR CONTRIBUTIONS.—Each authorized committee of a participating candidate under this title shall, in accordance with section 304(b)(3)(A), include in the reports the committee submits under section 304 the identification of each person who makes a qualified small dollar contribution to the committee.
523. Preventing unnecessary spending of public funds Read Opens in new tab
Summary AI
An authorized committee of a participating candidate cannot spend public funds unless they also spend an equal amount from certain private funds they have. This rule only applies if the private funds are available when the committee wants to use the public funds.
524. Remitting unspent funds after election Read Opens in new tab
Summary AI
Participating candidates in elections must return any leftover funds they received to the Commission within 180 days after the election, which will be added to the Freedom From Influence Fund. However, if candidates plan to run in the next election cycle, they can keep up to $100,000 of these unspent funds by filing an affidavit, but they cannot use this money until they are confirmed to participate in the future election, and must return it if they do not qualify.
Money References
- (b) Permitting candidates participating in next election cycle To retain portion of unspent funds.—Notwithstanding subsection (a), a participating candidate may withhold not more than $100,000 from the amount required to be remitted under subsection (a) if the candidate files a signed affidavit with the Commission that the candidate will seek certification as a participating candidate with respect to the next election cycle, except that the candidate may not use any portion of the amount withheld until the candidate is certified as a participating candidate with respect to that next election cycle.
- If the candidate fails to seek certification as a participating candidate prior to the last day of the Small Dollar Democracy qualifying period for the next election cycle (as described in section 511), or if the Commission notifies the candidate of the Commission’s determination does not meet the requirements for certification as a participating candidate with respect to such cycle, the candidate shall immediately remit to the Commission the amount withheld.
531. Enhanced support for general election Read Opens in new tab
Summary AI
The section outlines that the Commission will provide additional funding to eligible candidates for general elections, which must be spent on authorized election-related expenses.
532. Eligibility Read Opens in new tab
Summary AI
A candidate can receive extra payments if they meet certain conditions: being on the ballot for the general election, being certified as a participating candidate, collecting at least $50,000 in small contributions during a specific time period, and submitting the necessary documentation without requesting additional payments later. This specific time period starts 60 days before and ends 14 days before the election.
Money References
- (3) During the enhanced support qualifying period, the candidate receives qualified small dollar contributions in a total amount of not less than $50,000.
- (4) During the enhanced support qualifying period, the candidate submits to the Commission a request for the payment which includes— (A) a statement of the number and amount of qualified small dollar contributions received by the candidate during the enhanced support qualifying period; (B) a statement of the amount of the payment the candidate anticipates receiving with respect to the request; and (C) such other information and assurances as the Commission may require.
533. Amount Read Opens in new tab
Summary AI
The section outlines the rules for additional payments to eligible candidates, stating that such payments should be 50% of certain contributions unless the candidate has already hit the payment limit, in which case it considers hypothetical amounts. It also specifies that these additional payments cannot exceed $500,000 and do not count toward the overall payment limit for the election cycle.
Money References
- (a) In General.—Subject to subsection (b), the amount of the additional payment made to an eligible candidate under this subtitle shall be an amount equal to 50 percent of— (1) the amount of the payment made to the candidate under section 501(b) with respect to the qualified small dollar contributions which are received by the candidate during the enhanced support qualifying period (as included in the request submitted by the candidate under section 532(a)(4)); or (2) in the case of a candidate who is not eligible to receive a payment under section 501(b) with respect to such qualified small dollar contributions because the candidate has reached the limit on the aggregate amount of payments under subtitle A for the election cycle under section 501(c), the amount of the payment which would have been made to the candidate under section 501(b) with respect to such qualified small dollar contributions if the candidate had not reached such limit.
- (b) Limit.—The amount of the additional payment determined under subsection (a) with respect to a candidate may not exceed $500,000.
534. Waiver of authority to retain portion of unspent funds after election Read Opens in new tab
Summary AI
A candidate who receives extra funding for an election is not allowed to keep any leftover money; they must return all unspent funds to the Commission.
541. Freedom From Influence Fund Read Opens in new tab
Summary AI
The "Freedom From Influence Fund" is a Treasury fund set up to provide payments to candidates participating in elections and other specified programs. The fund collects money from fines, settlements, and specific deposits and ensures payments are made based on available funds, with no taxpayer money allowed; if funds are insufficient, payments may be reduced and adjusted accordingly.
542. Reviews and reports by Government Accountability Office Read Opens in new tab
Summary AI
The Government Accountability Office is required to review the Small Dollar financing program after each Federal election, considering factors like contribution amounts, candidate diversity, and overall satisfaction. They may suggest changes to Congress regarding the amount and number of small dollar contributions candidates need, and the maximum funds candidates can receive. A report with the findings and recommendations will be submitted to the House of Representatives, and funding is authorized to support these activities.
Money References
- (a) Review of Small Dollar financing.
- — (1) IN GENERAL.—After each regularly scheduled general election for Federal office, the Comptroller General of the United States shall conduct a comprehensive review of the Small Dollar financing program under this title, including— (A) the maximum and minimum dollar amounts of qualified small dollar contributions under section 504; (B) the number and value of qualified small dollar contributions a candidate is required to obtain under section 512(a) to be eligible for certification as a participating candidate; (C) the maximum amount of payments a candidate may receive under this title; (D) the overall satisfaction of participating candidates and the American public with the program; (E) the extent to which the program increased opportunities for participation by candidates of diverse racial, gender, and socio-economic backgrounds; and (F) such other matters relating to financing of campaigns as the Comptroller General determines are appropriate. (2) CRITERIA FOR REVIEW.—In conducting the review under subparagraph (A), the Comptroller General shall consider the following: (A) QUALIFIED SMALL DOLLAR CONTRIBUTIONS.—Whether the number and dollar amounts of qualified small dollar contributions required strikes an appropriate balance regarding the importance of voter involvement, the need to assure adequate incentives for participating, and fiscal responsibility, taking into consideration the number of primary and general election participating candidates, the electoral performance of those candidates, program cost, and any other information the Comptroller General determines is appropriate. (B) REVIEW OF PAYMENT LEVELS.—Whether the totality of the amount of funds allowed to be raised by participating candidates (including through qualified small dollar contributions) and payments under this title are sufficient for voters in each State to learn about the candidates to cast an informed vote, taking into account the historic amount of spending by winning candidates, media costs, primary election dates, and any other information the Comptroller General determines is appropriate. (3) RECOMMENDATIONS FOR ADJUSTMENT OF AMOUNTS.—Based on the review conducted under subparagraph (A), the Comptroller General may recommend to Congress adjustments of the following amounts: (A) The number and value of qualified small dollar contributions a candidate is required to obtain under section 512(a) to be eligible for certification as a participating candidate. (B) The maximum amount of payments a candidate may receive under this title. (b) Reports.—Not later than each June 1 which follows a regularly scheduled general election for Federal office for which payments were made under this title, the Comptroller General shall submit to the Committee on House Administration of the House of Representatives a report— (1) containing an analysis of the review conducted under subsection (a), including a detailed statement of Comptroller General’s findings, conclusions, and recommendations based on such review, including any recommendations for adjustments of amounts described in subsection (a)(3); and (2) documenting, evaluating, and making recommendations relating to the administrative implementation and enforcement of the provisions of this title. (c) Authorization of appropriations.—There are authorized to be appropriated such sums as are necessary to carry out the purposes of this section. ---
543. Administration by Commission Read Opens in new tab
Summary AI
The section tasks the Commission with creating rules to oversee several aspects of campaign funding. This includes verifying candidates' small contributions, ensuring personal funds are used appropriately, and auditing allocations and matching funds for compliance.
Money References
- The Commission shall prescribe regulations to carry out the purposes of this title, including regulations to establish procedures for— (1) verifying the amount of qualified small dollar contributions with respect to a candidate; (2) effectively and efficiently monitoring and enforcing the limits on the raising of qualified small dollar contributions; (3) effectively and efficiently monitoring and enforcing the limits on the use of personal funds by participating candidates; and (4) monitoring the use of allocations from the Freedom From Influence Fund established under section 541 and matching contributions under this title through audits of not fewer than 1⁄10 (or, in the case of the first 3 election cycles during which the program under this title is in effect, not fewer than 1⁄3 ) of all participating candidates or other mechanisms. ---
544. Violations and penalties Read Opens in new tab
Summary AI
The section describes penalties for candidates who break campaign contribution and spending rules, such as fines up to triple the amount of the violation and repaying misused funds with interest. It also states that candidates with multiple civil or criminal penalties may be disqualified from participating as candidates in future elections.
545. Appeals process Read Opens in new tab
Summary AI
Any decision made by the Commission under this title can be challenged in the United States Court of Appeals for the District of Columbia if a petition is filed within 30 days of the decision. The process for this judicial review will follow the rules set out in chapter 7 of title 5 of the United States Code.
546. Indexing of amounts Read Opens in new tab
Summary AI
In this section, starting from 2026, certain financial limits related to political contributions will be adjusted annually for inflation, similar to other existing limitations. These specific limits include various amounts related to small dollar contributions, personal funds usage by candidates, and the maximum contributions and payments candidates can receive or retain.
Money References
- (b) Amounts described.—The amounts described in this subsection are as follows: (1) The amount referred to in section 502(b)(1) (relating to the minimum amount of qualified small dollar contributions included in a request for payment). (2) The amounts referred to in section 504(a)(1) (relating to the amount of a qualified small dollar contribution). (3) The amount referred to in section 512(a)(2) (relating to the total dollar amount of qualified small dollar contributions). (4) The amount referred to in section 521(a)(5) (relating to the aggregate amount of contributions a participating candidate may accept from any individual with respect to an election). (5) The amount referred to in section 521(b)(1)(A) (relating to the amount of personal funds that may be used by a candidate who is certified as a participating candidate). (6) The amounts referred to in section 524(a)(2) (relating to the amount of unspent funds a candidate may retain for use in the next election cycle). (7) The amount referred to in section 532(a)(3) (relating to the total dollar amount of qualified small dollar contributions for a candidate seeking an additional payment under subtitle D).
547. Election cycle defined Read Opens in new tab
Summary AI
In this section, the term “election cycle” refers to the time period that starts right after the last general election for a particular office and ends on the day of the next general election for that office. If there's a runoff election, the cycle starts or ends on those runoff dates instead.
202. Contributions and expenditures by multicandidate and political party committees on behalf of participating candidates Read Opens in new tab
Summary AI
The section outlines that political committees can only contribute to certain candidates if the money comes from a special account made up of small donations that meet specific criteria. It also allows political parties to spend without limit on these candidates’ general election campaigns, as long as the spending comes from the same type of special account and is the only financial support provided to the candidate.
Money References
- (a) Authorizing Contributions Only From Separate Accounts Consisting of Qualified small dollar contributions.—Section 315(a) of the Federal Election Campaign Act of 1971 (52 U.S.C. 30116(a)) is amended by adding at the end the following new paragraph: “(10) In the case of a multicandidate political committee or any political committee of a political party, the committee may make a contribution to a candidate who is a participating candidate under title V with respect to an election only if the contribution is paid from a separate, segregated account of the committee which consists solely of contributions which meet the following requirements: “
- (A) Each such contribution is in an amount which meets the requirements for the amount of a qualified small dollar contribution under section 504(a)(1) with respect to the election involved.
- (b) Permitting Unlimited Coordinated Expenditures From Small Dollar Sources by Political Parties.—Section 315(d) of such Act (52 U.S.C. 30116(d)) is amended— (1) in paragraph (3), by striking “The national committee” and inserting “Except as provided in paragraph (6), the national committee”; and (2) by adding at the end the following new paragraph: “(6) The limits described in paragraph (3) do not apply in the case of expenditures in connection with the general election campaign of a candidate for the office of Representative in, or Delegate or Resident Commissioner to, the Congress who is a participating candidate under title V with respect to the election, but only if— “(A) the expenditures are paid from a separate, segregated account of the committee which is described in subsection (a)(10); and “(B) the expenditures are the sole source of funding provided by the committee to the candidate.”. ---
203. Prohibiting use of contributions by participating candidates for purposes other than campaign for election Read Opens in new tab
Summary AI
The section amends a law to ensure that candidates running for certain Congressional offices, who receive small dollar financing, can only spend contributions on their election campaigns, following specific rules.
Money References
- Section 313 of the Federal Election Campaign Act of 1971 (52 U.S.C. 30114) is amended by adding at the end the following new subsection: “(d) Restrictions on Permitted Uses of Funds by Candidates Receiving Small Dollar Financing.—Notwithstanding paragraph (2), (3), or (4) of subsection (a), if a candidate for election for the office of Representative in, or Delegate or Resident Commissioner to, the Congress is certified as a participating candidate under title V with respect to the election, any contribution which the candidate is permitted to accept under such title may be used only for authorized expenditures in connection with the candidate’s campaign for such office, subject to section 503(b).”. ---
204. Assessments against fines and penalties Read Opens in new tab
Summary AI
The text describes the creation of a new requirement for organizations and corporate officers, among others, convicted of crimes or facing penalties under federal law. In addition to their existing fines or settlements, they must pay an extra 4.75% assessment, which is collected to support the Freedom From Influence Fund under the Federal Election Campaign Act.
Money References
- “(2) EXEMPT TAXPAYER.—For purposes of this subsection, a taxpayer is an exempt taxpayer for any taxable year if the taxable income of such taxpayer for such taxable year does not exceed the dollar amount at which begins the highest rate bracket in effect under section 1 with respect to such taxpayer for such taxable year.
3015. Special assessments for Freedom From Influence Fund Read Opens in new tab
Summary AI
The section requires courts to charge an extra 4.75% fee on any fines or settlement amounts for organizations or corporate officers convicted or settling federal criminal offenses. This money will be collected like other criminal fines and transferred to the Freedom From Influence Fund.
9706. Special assessments for Freedom From Influence Fund Read Opens in new tab
Summary AI
The section outlines that federal agencies can impose a special assessment of 4.75% on civil and administrative penalties, as well as settlement amounts, from organizations and their representatives, with exceptions related to the Internal Revenue Code. The collected funds are transferred to the Freedom From Influence Fund, except for cases under tax penalties and settlements.
6761. Special assessments for Freedom From Influence Fund Read Opens in new tab
Summary AI
Each person who has to pay certain fines or penalties must also pay an extra 4.75% that goes into a special fund called the Freedom From Influence Fund. However, if a person’s income is below a certain level, they don't have to pay this extra amount.
Money References
- (2) EXEMPT TAXPAYER.—For purposes of this subsection, a taxpayer is an exempt taxpayer for any taxable year if the taxable income of such taxpayer for such taxable year does not exceed the dollar amount at which begins the highest rate bracket in effect under section 1 with respect to such taxpayer for such taxable year.
205. Study and report on small dollar financing program Read Opens in new tab
Summary AI
The Federal Election Commission must conduct a study and produce a report two years after the first election using the small dollar financing program, assessing the payment amounts and their effectiveness in meeting the program's goals. The study and report will be updated every two years, with the requirements ending 10 years after the first report is submitted to Congress.
Money References
- Study and report on small dollar financing program.
- (a) Study and report.—Not later than 2 years after the completion of the first election cycle in which the program established under title V of the Federal Election Campaign Act of 1971, as added by section 201, is in effect, the Federal Election Commission shall— (1) assess— (A) the amount of payment referred to in section 501 of such Act; and (B) the amount of a qualified small dollar contribution referred to in section 504(a)(1) of such Act; and (2) submit to Congress a report that discusses whether such amounts are sufficient to meet the goals of the program. (b) Update.—The Commission shall update and revise the study and report required by subsection (a) on a biennial basis. (c) Termination.—The requirements of this section shall terminate 10 years after the date on which the first study and report required by subsection (a) is submitted to Congress. ---
206. Effective date Read Opens in new tab
Summary AI
The section states that the new rules and changes introduced by the bill will apply to elections starting in 2030 and afterward. It also mandates that the Federal Election Commission must have the necessary regulations in place by June 30, 2028, to implement these changes.