Democrats' Digital Fundraising Operations Face Scrutiny from Trump Administration
President Trump's latest move has stirred up a storm in the political arena, targeting online fundraising platforms that largely power Democratic campaigns. In a bold step, Trump initiated an investigation into ActBlue, the Democratic Party's primary grassroots fundraising tool, through an executive order published on the White House website.
The executive order, reminiscent of a thriller plot, raises red flags about foreign nationals potentially using these fundraising sites to influence American elections. The order empowers newly appointed Attorney General, Pam Bondi, and Treasury Secretary, Scott Bessant, to delve into these platforms, hunting for evidence of malfeasance. The claims made in the order are based on press reports and congressional committee investigations that suggest online fundraising platforms may have knowingly participated in schemes to launder excessive and prohibited contributions to political candidates and committees.
These reports hint at a sinister game—one where malign actors evade Federal source and amount limitations on political contributions by breaking down large contributions into many smaller contributions, attributed to multiple individuals, without their consent or knowledge. These "straw donations" might be made through "dummy" accounts, often using gift cards or prepaid credit cards to dodge detection.
The order gives Bondi and Bessant carte blanche to investigate these fundraising tools for signs of foreign influence. Gizmodo reached out to the Trump administration for further insights.
Interestingly, the order references a previous probe by House Republicans into ActBlue that supposedly uncovered evidence of foreign-based fraud on the platform.
It's important to note that the Republicans also have their own fundraising operation, WinRed, launched during Trump's first term in 2019. This for-profit fundraising tool was designed to compete with the Democrats' ActBlue. However, the Trump administration actively lobbied Republicans to use WinRed, despite its lackluster performance compared to its Democratic counterpart and criticism from within its own ranks. WinRed too has faced scrutiny, probed by several state attorneys general for its fundraising tactics.
Background
While the investigation into ActBlue for foreign influence in American elections appears to be a political move, it also raises legitimate concerns about the vulnerability of online fundraising platforms to unlawful "straw donor" contributions and foreign contributions. Federal law strictly prohibits political contributions by foreign nationals (52 U.S.C. 30121 and 30122). Online fundraising platforms like ActBlue have attracted scrutiny for potentially allowing malign actors to circumvent these laws by breaking down large contributions into smaller donations attributed to multiple individuals or using prepaid cards and "dummy" accounts.
Details
- Presidential Memorandum: On April 24, 2025, President Donald Trump issued a Presidential Memorandum directing the Attorney General to investigate these allegations, with a particular focus on ActBlue's possible role in facilitating foreign contributions.
- Congressional Investigations: Chairman Bryan Steil of the House Committee on Administration led investigations into ActBlue. This included sending letters to several Attorneys General and issuing subpoenas to obtain documents related to donor verification policies and vulnerabilities to foreign interference.
- Evidence of Fraud: There were reports of significant fraud campaigns on ActBlue, including 22 "significant fraud campaigns" with a foreign nexus. Over a 30-day period during the 2024 campaign, ActBlue detected 237 donations from foreign IP addresses using prepaid cards.
Implications
- Political Impact: Perceived by some as an attack on democracy, the investigation is seen by others as a political maneuver by President Trump to target his political opponents. Republicans view it as an effort to uncover hidden sources of funding and ensure election integrity.
- Legal Ramifications: The investigation could lead to legal actions against ActBlue or individuals involved in facilitating illegal contributions. It underscores the ongoing challenge of maintaining the integrity of American elections against foreign interference.
- Public Perception: The investigation may heighten scrutiny of online fundraising platforms and their measures to prevent foreign influence. It could also contribute to broader discussions about election security and political donation regulations.
- The investigation initiated by President Trump targets online fundraising platforms, primarily ActBlue, which are major powerhouses for Democratic campaigns.
- The executive order empowers Attorney General Pam Bondi and Treasury Secretary Scott Bessant to investigate these platforms for potential malfeasance, citing evidence of foreign entities evading political contribution rules.
- Malign actors are suspected of using the platforms for "straw donations" and "dummy" accounts, breaking down large contributions into smaller amounts and using prepaid cards to evade detection.
- In response, Gizmodo reached out to the Trump administration for further insights on the investigation, but received no immediate comment.
- Interestingly, the order references a previous probe by House Republicans into ActBlue that claimed to uncover evidence of foreign-based fraud, and Republicans have their own fundraising tool, WinRed, often criticized for its tactics.
- Despite these controversies, the ongoing investigation raises legitimate concerns about the vulnerability of online fundraising platforms to unlawful foreign contributions, sparking debates on election security and political donation regulations.
