Democrats' Digital Fundraising Operations Under Attack by Trump Administration
President Trump's Latest Move:
The democratic fundraising powerhouse, ActBlue, is under the spotlight as President Trump targets online political fundraising platforms that predominantly serve the Democrats. In an unusual executive order, the administration has initiated a probe into ActBlue, claiming potential involvement in questionable funding practices.
Thursday's executive order published on the White House website indicates concerns that "foreign nationals" may be exploiting fundraising sites like ActBlue to meddle in American elections. The order empowers the new Attorney General, Pam Bondi, and the Treasury Secretary, Scott Bessant, to scrutinize such sites for any signs of malfeasance.
...press rumors and congressional investigations have raised serious doubts about online fundraising platforms' role in laundering excessive and prohibited contributions to political candidates and committees. The order suggests that malign actors might be using these platforms to circumvent Federal source and amount limitations on political contributions by employing "straw donor" schemes and "dummy" accounts to make illicit donations, often using gift cards or prepaid credit cards to avoid detection.
The order grants Bondi and Bessant the authority to investigate these fundraising tools for evidence of foreign influence. In response to our inquiry, the Trump administration declined to provide further details.
Interestingly, this ongoing probe into ActBlue echoes a previous House Republican investigation, which allegedly uncovered evidence of foreign-based fraud on the platform.
A word about the Republicans: they too have their own fundraising operation, launched during Trump's term. WinRed, launched in 2019, operates as a for-profit fundraising tool, competing with the Democrats' ActBlue. The Trump administration has actively advocated for Republicans to utilize the platform, a move met with mixed responses, as the platform's success has been notable yet inconsistent compared to its Democratic counterpart, and has faced criticism from within the Republican party itself.
WinRed, too, has been subject to scrutiny, investigated by several state attorneys general for aggressive donation-encouragement tactics. It's worth noting that the debate around transparency and fraud prevention in political fundraising platforms is far from one-sided.
The American legal system outlaws foreign contributions to political campaigns, as defined by 52 U.S.C. 30121 and 30122.[1][2] The allegations against ActBlue, primarily, revolve around two key concerns:1. "Straw Donor" Schemes: The use of multiple smaller donations, possibly without the donors' knowledge, to circumvent contribution limits. This practice is facilitated by "dummy" accounts and prepaid cards to evade detection.2. Foreign Contributions: Ongoing investigations hint at foreign nationals using online platforms to influence American elections. ActBlue has reportedly detected at least 22 "significant fraud campaigns," with nearly half having a foreign component. During a 30-day window in the 2024 campaign cycle, the platform identified 237 donations from foreign IP addresses using prepaid cards.[1][2]3. Fraud Prevention Practices: Critics argue that ActBlue's fraud-prevention measures are inadequate, potentially allowing foreign actors to make unlawful political donations. This shortcoming has been a recurring theme in ongoing investigations.[5]
Tech news outlet Gizmodo reported that the ongoing probe into ActBlue, a major political fundraising tool for Democrats, has sparked debates about the role of technology in policy-and-legislation and politics, as well as general news. The investigation, fueled by President Trump's executive order, centers on concerns about potential straw donor schemes, foreign contributions, and inadequate fraud prevention practices on ActBlue. The platform has allegedly identified numerous instances of foreign IP addresses using prepaid cards to make donations, highlighting the need for improved tech and policy solutions to safeguard the future of political fundraising.
