Congress closes foreign-money loophole in ballot initiatives
H.R. 3535 — Stop Foreign Funds in Elections Act · Filed by Brian Fitzpatrick (R-PA) · 2 cosponsors · Introduced May 21, 2025 · Passed chamber
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What it does
This bill extends the existing federal ban on foreign contributions to U.S. elections to also cover ballot initiatives, referenda, and recall elections at the state and local level. Currently, foreign nationals are prohibited from donating to federal candidates and parties; this amendment closes a loophole by applying the same ban to direct-democracy ballot measures.
Why we flagged it
The bill's sole operative mechanism is a straightforward extension of existing foreign-contribution prohibitions to ballot initiatives and referenda. It is a narrow, technical amendment designed to close a regulatory gap in campaign finance law.
What the text implies
- The amendment may create enforcement challenges for state and local election officials unfamiliar with federal foreign-contribution rules, potentially requiring new training and compliance infrastructure.
- Foreign nationals and entities may face ambiguity about what constitutes a 'contribution or donation' to a ballot measure (e.g., does it cover advertising, polling, or only direct monetary transfers?), though existing FECA case law should provide guidance.
The full analysis lists 3 implications of this text.
Who it affects
Citizens voting on ballot measures gain protection against foreign financial interference in direct-democracy processes. The amendment closes a regulatory gap that previously allowed foreign money to flow into state and local ballot campaigns while federal elections were protected, strengthening the integrity of all electoral processes.