Despite federal laws prohibiting foreign funding of candidate elections, foreign individuals and entities are still able to fund campaigns related to state and local ballot initiatives in multiple jurisdictions, creating a loophole that hostile foreign actors can exploit to influence American elections.
Key points:
- Federal law prohibits foreign nationals from contributing to candidate campaigns or political parties, but not ballot propositions.
- Foreign nationals and corporations have spent money to influence state or local ballot measures, with one group spending $130 million over 10 years.
- Only 27 states ban either foreign individuals and/or corporations from participating in ballot initiatives.
- Of the 26 states featuring statewide citizen-led initiatives or referenda, 17 have bans on foreign funding.
- 48 states feature local ballot measures, with 21 states allowing foreign funding.
