President Obama May Alter Disclosure Requirements For Political Contributions

Earlier this month, during his State of the Union address, President Barack Obama spoke of the need to “reduce the influence of money in our politics, so that a handful of families or hidden interests can’t bankroll our elections.”

The president went on to say, “And if our existing approach to campaign finance reform can’t pass muster in the courts, we need to work together to find a real solution – because it’s a problem.”

Not holding out much hope that Congress will act on his wishes, Obama last week indicated that he is considering an executive order that would require all federal contractors to reveal contributions they’ve made to political groups. This so-called “Dark Money” has flourished in the years since the 2010 Supreme Court decision in the Citizens United case, which allowed corporations, associations and labor unions to spend money in an effort to influence political campaigns. Many of the groups given this money are not required to make public the names of their contributors.

In both 2010 and 2012, separate versions of the DISCLOSE Act attempted to implement disclosure requirements for federal contractors. Both died in the Senate, and neither got to the president’s desk. Administration officials made clear the president’s preference for Congress to act on the issue, but they also admitted that such a move was unlikely. Obama’s potential action would require any company with a federal contract to disclose contributions to independent political groups. Contributions to actual candidates already are reported to and made public by the Federal Election Commission (FEC). The executive order would require contractors to release publicly their political spending, including money funneled through trade associations like the U.S. Chamber of Commerce.

“We have heard this order has been ready for the president’s signature for the last several years,” said Trevor Potter, formerly the chair of the FEC, “And I don’t know of anyone on the outside who really knows whether the presidential pen will move across that piece of paper or not, or when.”

There has been no further announcement since last week, when news outlets first reported the executive order might be imminent. 

This article originally published by Strategic Partnerships Inc.