Texas Attorney General Ken Paxton has urged the Federal Election Commission to investigate ActBlue, accusing the Democratic donation platform of allowing impermissible anonymous donations via prepaid cards.
Just The News reported that Paxton has accused ActBlue of obscuring donor identities, raising significant election integrity concerns.
Paxton announced on Monday a formal petition to the Federal Election Commission, targeting ActBlue, a key Democratic fundraising platform.
Over the past year, the Texas Office of the Attorney General has scrutinized ActBlue under suspicion that the platform enables "straw donations" - donations made under false identities or those belonging to others without their knowledge.
The petitions stem from findings that suggest ActBlue has allowed contributors to use prepaid credit cards frequently associated with fraudulent activities. These cards can be used to mask the true identity of the donor, thus violating campaign finance laws that require transparency in donor information.
Paxton's scrutiny began in December last year, following which, in August, ActBlue added new security enhancements.
Despite these changes, Paxton has judged these measures, like the inclusion of CVV codes for transaction verification, to be inadequate. He argues that these steps are still insufficient to prevent contributions from obscured identities or untraceable sources.
According to Paxton, “Certain platforms appear to facilitate straw donor transactions, where a contributor disguises his identity by attributing his contribution to another, unaware person.”
This particular angle of the investigation suggests a systematic issue with how donations are handled on ActBlue, necessitating a broader regulatory response to tighten up the current shortcomings.
Results from the inquiry have prompted Paxton to warn of the ease with which bad actors could, if unchecked, funnel illegal foreign money into U.S. elections or surpass donation limits, disrupting the electoral integrity. “If not corrected by the FEC, bad actors can – with trivial ease – illegally funnel foreign money into American elections, exceed political contribution limits, and more,” Paxton cautioned.
Since its inception in 2004, ActBlue has raised over $15.8 billion, marking it as a significant portal for Democratic fundraising. Only in the third quarter of fiscal 2024, the platform processed more than $1.5 billion from 6.9 million unique donors, illustrating its critical role in the current political financing landscape.
ActBlue's contributions this quarter showcased a notable increase in small-dollar donations, particularly towards advocacy groups focusing on pro-abortion and pro-gun control issues.
The platform noted that a majority of these contributions were processed via saved payment methods or digital wallets, with many donations originating from mobile devices.
ActBlue itself highlighted the surge in grassroots support witnessed this year, “The record-breaking surge of small-dollar donations in Q3 2024 has demonstrated the power of grassroots energy in shaping America’s political landscape,” reflecting a strong momentum that could influence upcoming elections.
U.S. officials, including House Oversight Chair Rep. James Comer and Senator Marco Rubio, have echoed Paxton’s concerns. Rubio specifically criticized ActBlue, considering its "intentional lack of security" as opening doors for potential fraud.
“It should come as no surprise that ActBlue serves as a vessel for fraud, considering the intentional lack of security engrained within their donation processes and systems,” Rubio stated.
Such statements reflect a broader anxiety over the potential for misuse of platforms like ActBlue to bypass established campaign finance laws.
These concerns, compounded by Paxton's investigation, suggest a critical turning point wherein regulatory bodies like the FEC might be compelled to take stronger actions.
The unfolding situation encapsulates significant challenges to campaign finance integrity, particularly with evolving digital donation methods. As the FEC considers the petition, the broader implications for electoral transparency and fairness hang in the balance, prompting a national conversation about the adequacy of existing laws and measures in the digital age.