UJ
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ActBlue, a major fundraising entity for progressive candidates and initiatives, is under increased examination and criticism from Republican lawmakers and supporters of former President Donald Trump, as the GOP asserts its influence in Washington and sets its sights on a vital component of the Democratic Party’s financial framework.
Three Republican representatives, including the chairmen of the House Oversight and Administration Committees, are calling on Trump’s Treasury Department to share information with Congress regarding suspicious financial activities linked to ActBlue. Other Republican lawmakers are demanding investigations by both Treasury and the FBI into whether the platform has facilitated organizations involved in terrorism or breached federal campaign finance regulations.
Moreover, billionaire Trump supporter Elon Musk, who heads a controversial initiative to downsize the federal government, has publicly criticized ActBlue, attempting to link it to demonstrations and vandalism associated with his electric vehicle company, Tesla. He has claimed, without providing evidence, that some notable Democrats, including one who passed away in 2019, were financing ActBlue and these protests.
“There’s something off about ActBlue,” Musk wrote on his social media platform, X, earlier this month.
ActBlue representatives deny any allegations of misconduct.
“ActBlue has consistently faced attacks and unfounded accusations from the Right intended to weaken the influence of the small-dollar contributors who depend on our platform,” stated spokesperson Megan Hughes in a UJ report. “This latest coordinated onslaught is merely a matter of scale, and our team remains committed to defending against these bad-faith assaults.”
She emphasized that the platform will persist in its “mission to broaden access to political contributions and ensure that grassroots movements continue to prosper.”
ActBlue, a nonprofit organization, stands as a significant fundraising engine for Democrats and progressive factions, directing small-dollar contributions to candidates, party committees, and others. Since its inception in 2004, it has garnered over $16 billion, according to a continuously updated total on its website.
While it has rivals, ActBlue has historically led in online payment processing for the party. The platform reports that more than 14 million users have saved their contact and payment details, facilitating one-click donations.
Nonetheless, the intensified criticism from Republicans arises as ActBlue has experienced internal challenges, including the recent exit of several senior personnel, first highlighted by The New York Times. Additionally, some Democratic consultants and figures within liberal circles are questioning whether the platform adequately protects donors from misleading practices.
Last December, dozens of individuals and progressive organizations penned an open letter to ActBlue, advocating for reforms, including barring political committees that fundraise on the platform from employing misleading language in their solicitations.
However, some Democrats fret that, with Republicans currently controlling all aspects of government in Washington, this increased scrutiny could foreshadow a Republican effort to completely dismantle the platform and disrupt Democratic fundraising efforts in upcoming elections.
Josh Nelson, CEO of the advertising platform Civic Shout and a signatory of last year’s letter advocating changes to ActBlue’s policies, expressed that his concerns about the platform’s internal operations have been overshadowed this year by his increasing alarm over what he perceives as “illegitimate assaults” from the GOP.
“I believe Republicans are aware that ActBlue has been an exceptionally effective fundraising platform for countless Democratic campaigns and progressive entities,” Nelson stated. “They are merely attempting to wield their power to damage their political adversaries in future elections.”
“The concern is how far Republicans will go.”
In recent years, GOP lawmakers have increased their scrutiny of ActBlue, questioning the platform’s fraud prevention measures and how it stops foreign contributions to U.S. political campaigns. Among the issues raised is that ActBlue did not consistently require donors to input the CVV number on every credit card transaction.
(ActBlue has implemented the CVV requirement but maintains that it has long employed various reliable methods to combat fraud and prohibit illegal foreign contributions, including an address verification system to confirm that cardholder addresses match those registered with the issuing banks. Americans residing abroad, for example, are also required to provide a copy of their passport photo.)
However, the current month has witnessed a surge of new activity regarding ActBlue from GOP lawmakers who are requesting executive branch investigations or access to sensitive documents from Treasury, such as “suspicious activity reports” (SARs) that financial institutions file to indicate suspected instances of money laundering, fraud, or other questionable transactions.
Wisconsin GOP Rep. Bryan Steil, who leads the House Administration Committee, along with others, has expressed dissatisfaction that the Biden administration provided only limited information in response to inquiries about reports involving ActBlue.
He recently joined House Oversight and Accountability Committee Chairman, Kentucky Rep. James Comer, and New York Rep. Nick Langworthy in a letter seeking all suspicious activity reports mentioning ActBlue filed at any time since January 1, 2023.
It remains uncertain whether Treasury Secretary Scott Bessent will comply with this request.
At present, the House Administration Committee “is in communication with the Treasury Department regarding the review of SARs,” a source informed UJ this week. A spokesperson for the Treasury declined to comment.
Other GOP lawmakers advocating for investigations into the fundraising platform include Trump supporters, California Rep. Darrell Issa and Arizona Rep. Andy Biggs.
In the interim, Democrats are leveraging the GOP’s scrutiny to attract more political donations.
“Republicans are attacking ActBlue because small-dollar donations from individuals like you are a significant advantage for Democratic campaigns at all levels,” declared a recent fundraising email from the Democratic National Committee.
The message subsequently directed users to ActBlue to support Democrats in their “fight back” efforts.
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