HF2601: Campaign Finance Restrictions

Prohibits foreign nationals from contributing to or otherwise influencing ballot issue campaigns, either directly or indirectly. Political committees must now obtain affirmations from donors that they are not foreign nationals and have not accepted significant foreign funds in the preceding four years. Treasurers must affirm compliance with these rules in campaign filings. The bill also introduces strong privacy protections for donors to tax-exempt organizations during investigations, limiting disclosure and collection of donor identities unless directly related to violations. Violations incur substantial civil and criminal penalties. Effective 7/1/2026.

Key Points & Impacts:

• Defines 'directly or indirectly' and 'foreign national' for campaign finance law, expanding the scope of prohibited foreign involvement.

• Requires political committees advocating on ballot issues to obtain affirmations from donors that they are not foreign nationals and have not received over $100,000 from foreign nationals in the last four years.

• Mandates that political committee treasurers include affirmations in reports stating no receipt of prohibited foreign funds or donations from prohibited sources.

• Prohibits foreign nationals from making independent expenditures or influencing ballot issue campaigns, directly or indirectly.

• Strikes the previous, narrower definition of 'foreign national' from existing law and replaces it with a broader, more detailed definition.

• Requires independent expenditure statements regarding ballot issues to affirm that no foreign funds over $100,000 have been or will be accepted during the relevant period.

• Establishes strict privacy protections for donors to tax-exempt organizations during campaign finance investigations, with disclosure only allowed in cases of proven violation.

• Imposes civil penalties (minimum $10,000 or triple the unlawful amount) and makes willful violations a serious misdemeanor, including potential jail time and fines.