Democratic Fundraising Platforms Under Attack by Trump
Firing Up the Heat:
President Trump's latest move aims to scrutinize Democratic fundraising platforms, starting with ActBlue — their primary crowdfunding tool. In a stark announcement last Thursday, the Trump administration set the wheels in motion for an investigation into these online fundraisers.
The White House published an executive order on their website, which accusingly suggests "foreign nationals" might be infiltrating American election funds via platforms like ActBlue. This order empowers the newly appointed Attorney General, Pam Bondi, and the Treasury Secretary, Scott Bessant, to delve deep into these websites, searching for evidence of misconduct. The order elucidates:
...reports and ongoing investigations by congressional committees have uncovered troubling evidence that online fundraising platforms are complicit in schemes to illegally contribute funds to political candidates and committees.
The order goes on to elaborate:
Specifically, these reports question whether ill-intentioned actors are bypassing federal contribution limits by breaking down enormous sums from one source into numerous smaller contributions, disguised as hundreds of other contributors — potentially without their knowledge or consent. The reports also raise fears that such "straw donations" are being made using fake accounts, often via gift cards or pre-paid credit cards to evade detection.
The order authorizes Bondi and Bessant to utilize "all legal means necessary" to probe these fundraising tools for indications of foreign intervention. Gizmodo reached out to the Trump administration for further clarification.
Interestingly, the order refers back to a previously conducted probe by House Republicans, allegedly corroborating evidence of fraudulent activities on ActBlue's platform.
It's essential to note that Republicans also have their own crowdfunding operation, which took off during Trump's first term. Known as WinRed, it was established in 2019 as a for-profit fundraising tool and the Republicans' response to Democrats' ActBlue. The Trump administration has been actively pushing Republicans to utilize this tool, which, surprisingly, hasn't seen the same level of success compared to its Democratic counterpart. The platform has been criticized by Republicans themselves in the past and has faced inquiries by several state attorneys general due to its fundraising tactics.
Enrichment Insights:- Congressional investigations and reports have uncovered 22 suspected "fraud campaigns" involving ActBlue, with nearly half having a foreign connection. However, these were primarily identified by ActBlue itself and mostly consisted of small donations, typically $1.- During a 30-day period in the 2024 campaign, ActBlue detected 237 donations from foreign IP addresses using pre-paid cards.- Critics argue that ActBlue's structure for small-dollar donations makes it implausible for foreign donors to constitute a significant portion of its fundraising. Republicans have not provided substantial evidence of widespread straw-donor schemes.- Some reports suggest that the suspected foreign contributions were part of scams targeting platform users rather than efforts to influence elections.- Federal law prohibits foreign nationals from making political contributions and bans donations made in the name of another person. The alleged use of pre-paid cards or gift cards to avoid detection is a concern.
- Gizmodo reported that the Trump administration's executive order empowers the Attorney General, Pam Bondi, and the Treasury Secretary, Scott Bessant, to investigate online fundraisers like ActBlue, citing concerns about potential foreign infiltration in American election funds.
- The executive order references a previously conducted probe by House Republicans, which allegedly corroborated evidence of fraudulent activities on ActBlue's platform, but it's essential to note that the Republicans also have their own tech-based fundraising tool, WinRed, which has faced criticism and inquiries due to its fundraising tactics.
- Despite the ongoing investigation, critics argue that ActBlue's structure for small-dollar donations makes it implausible for foreign donors to constitute a significant portion of its fundraising, and reports suggests that suspected foreign contributions were part of scams targeting platform users rather than efforts to influence elections.
