Skip to content

Wednesday, Feb. 28, 2024

Can foreigners indirectly fund political ads by giving money to a US nonprofit that then gives money to a US super PAC?


yes

Federal law prohibits a foreign national — someone who is not a U.S. citizen and not lawfully a permanent resident — from making contributions in connection with any federal, state or local election.

But there’s a loophole.

Foreign nationals can donate money to social welfare organizations, also known as 501(c)(4) groups. Those nonprofits, such as the NRA and an arm of Planned Parenthood, can contribute to super PACs.

A super PAC can spend unlimited sums to advocate for or against political candidates.

Federal Election Commission chair Sean Cooksey told the U.S. House Administration Committee that the loophole is legal, as long as a foreign national donor doesn’t direct the nonprofit to channel money to a super PAC.

Committee chair, Republican Rep. Bryan Steil, who represents southeast Wisconsin, introduced a bill in July 2023 to restrict foreign nationals’ contributions to 501(c)(4) groups. The House of Representatives has not voted on the measure.

See a full discussion of this at Wisconsin Watch

This fact brief is responsive to conversations such as this one.

About fact briefs

Fact briefs are bite-sized, well-sourced explanations that offer clear "yes" or "no" answers to questions, confusions, and unsupported claims circulating online. They rely on publicly available data and documents, often from the original source. Fact briefs are written and published by Gigafact contributor publications.

See all fact briefs

Wisconsin Watch, the news arm of the nonpartisan, nonprofit Wisconsin Center for Investigative Journalism, increases the quality and quantity of investigative reporting in Wisconsin, while training current and future investigative journalists. Its work fosters an informed citizenry and strengthens democracy.

Learn More

Be a Friend of facts

Help us fund more great fact briefs like this one.