According to Federal law, it is illegal for a foreign entity, whether a person, organisation, or government, to donate money to a political campaign or party. This should, in theory, ensure that our political system remains free from foreign influence. In practice, the picture is considerably more complicated.
The 501(c)(4) Loophole
There is a well-known, yet secretive, loophole embedded within the U.S. tax code for charities. Non-profit organisations that claim to serve "social well-being" under 501(c)(4) are not obligated to disclose their donors. They can funnel money into their "social cause" and donate an unrestricted amount to a candidate's Super PAC. If you believed that foreign interference was limited to social media campaigns, this loophole tells a different story. There are many documented cases where foreign nationals channelled money into U.S. campaigns. Many experts agree these are the tip of a much deeper iceberg.
What Can Be Done About It?
It is not that all politicians are corrupt. It is that the current system is corrupt, and the way we elect people reinforces that corruption. Many people serving in government genuinely believe in serving the country. They want to make changes and improve the lives of all Americans. But until the public demands changes to our election laws, frustrated government servants will continue to be crushed by the system.
Until we change who we elect, either by updating election laws in each state or by electing third-party candidates dedicated to changing those laws, government dysfunction will persist and corruption within the legislature will grow. The responsibility for this does not rest solely with politicians.
Further Reading
- FEC: Federal Law on Foreign Nationals and Political Contributions
- Voice of America: Foreign Money Flows Into U.S. Politics
The foreign money question is inseparable from the broader structural problem. Reforming how we elect candidates is the foundation upon which every other fix must be built.
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