November 4, 2021
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The Federal Election Commission has ruled foreign donors can finance U.S. referendum campaigns, opening the door to foreign spending on fights over high-profile policy issues, Axios has learned.
Why it matters: Foreign nationals are barred from donating to U.S. political candidates or committees. But the FEC's decision — allowing them to support ballot committees — provides another avenue for foreigners to directly influence U.S. voters and domestic policy.
A major question stemming from the decision is whether foreign nationals are now permitted to spend money to influence the actual mechanisms of the U.S. democratic process.
That would include congressional redistricting, which is frequently subject to ballot referenda.
The FEC's ruling did not address that question, meaning it will likely be litigated in future fights at the commission.
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