The Democratic fundraising platform ActBlue is under scrutiny after a New York Times report alleged it misled Congress about its safeguards against foreign donations. The report centers on discrepancies between statements made by ActBlue’s leadership and internal legal counsel.

Allegations of Misleading Congress

In 2023, ActBlue CEO Regina Wallace-Jones informed the House Administration Committee that the platform employed “multi-layered screenings” to prevent contributions from foreign citizens. However, internal memos from the law firm Covington & Burling, ActBlue’s outside legal counsel, reportedly contradicted these claims.

Internal Legal Concerns

According to the New York Times, Covington & Burling warned of potential legal liability due to inaccuracies in ActBlue’s statements to Congress. The memos reportedly indicated that ActBlue did not consistently verify U.S. passport information for donors.

The legal counsel also noted that the platform permitted overseas transactions using prepaid cards. This is a critical concern, as U.S. law prohibits donations to federal candidates or political action committees from foreign nationals and non-permanent residents.

Concerns and Internal Impact

Scott Walter, President of the Capital Research Center, emphasized the responsibility of platforms processing billions in political donations to meticulously vet funding sources, particularly those potentially originating from foreign entities.

The reported warnings from Covington & Burling reportedly triggered an internal crisis at ActBlue, leading to the resignation of the entire general counsel’s office and the termination of the firm’s services. This underscored the seriousness of the legal concerns.

ActBlue's Response

ActBlue denies misleading Congress, stating that the New York Times report misinterprets privileged legal communications. The platform asserts it has fully cooperated with Congressional inquiries, providing thousands of documents and responding to detailed requests.

ActBlue maintains its commitment to platform integrity and a zero-tolerance policy towards illegal contributions. The platform also states that potential foreign contributions represent less than 1% of total donations, with many coming from Americans living abroad.

Broader Context

This investigation occurs amidst broader concerns about foreign influence in U.S. elections. Previous investigations, including those from the Trump administration and House committees, have focused on similar issues. The legal memos reportedly stated that ActBlue could be accused of accepting or facilitating foreign national contributions.