The GOP-led Committee on House Administration has spent over a year investigating whether the major Democratic fundraising platform ActBlue has complied with federal campaign finance laws and prevented illegal contributions.

Committee Chairman Bryan Steil (R-Wis.) issued a subpoena to ActBlue on Oct. 30 for documents related to its donor verification policies and to the potential for foreign actors — particularly from China, Iran, Russia, and Venezuela — to use the platform to launder illicit money into American political campaigns.

Steil announced Tuesday that ActBlue admitted in documents under subpoena that it did not automatically reject donations made with foreign gift cards prior to a policy change in September.

House Speaker Mike Johnson (R-La.) responded to the revelation, stating, "This is ILLEGAL."

Sen. Mike Lee (R-Utah) tweeted, "Federal campaign-finance laws apparently apply only to Republicans and exist to help Democrats."

Rep. Marc Molinaro (R-N.Y.) wrote, "Into the 3rd quarter of campaign fundraising Democrats were accepting foreign gift card donations through their Act Blue platform. As Congressional candidates were reporting millions of dollars in donations, they didn't require the CVV code verification and allowed foreign gift card donations! This is illegal and outrageous."

Joe Lonsdale, the American entrepreneur who co-founded Palantir Technologies, noted, "Those accusing the other side of collaborating with foreign powers to meddle in our elections were projecting."

The platform has since updated its donor verification policies to "automatically reject donations that use foreign prepaid/gift cards, domestic gift cards, are from high-risk/sanctioned countries, and have the highest level of risk as determined" by its anti-fraud solution provider, Sift.

'We must keep working to ensure that no foreign funds were illegally funneled into US political campaigns during this election cycle.'

Just the News reported that the policy change took place three days after Steil introduced the Secure Handling of Internet Electronic Donations Act on Sept. 6.

The bill would require political committees to collect the credit or debit card's verification value when accepting corresponding contributions over the internet.

ActBlue indicated in a Nov. 27, 2023, letter to Steil that the platform required and used card verification values on "many" but not all transactions across the site.

Furthermore, the so-called SHIELD Act would require that the card's billing address be located in the United States unless the contributor is an American national living abroad or lawfully admitted for permanent residence. In such cases, the contributor must provide the political committee with his registration address or identification document. The bill would also prohibit political committees from accepting contributions made via general-use prepaid cards, gift certificates, or store gift cards.

Steil noted in a statement that while ActBlue's policy change "is a positive step forward, there is still more work to be done to ensure our campaign finance system is fully protected from fraud and unlawful foreign interference."

"The documents provided to the Committee also confirm that ActBlue still accepted these concerning payment methods in July, a period when Democrats raised a record number of campaign money [sic] before implementing these safeguards," continued the Wisconsin congressman. "We must keep working to ensure that no foreign funds were illegally funneled into U.S. political campaigns during this election cycle. It is also critical that we enact lasting reforms to prevent illicit contributions in future election cycles."

Rep. Jim Jordan (R-Ohio), chairman of the House Judiciary Committee, penned a letter with Steil Monday to the CEO of Sift, Kris Nagel, requesting documents pertaining to the company's efforts to deter fraudulent transactions on ActBlue and related communications.

The Republican lawmakers noted that a recent data analysis of Federal Election Commission records "uncovered suspicious transactions made using ActBlue, including donations larger than the named donor could afford, 'uncharacteristic donations from registered voters suddenly contributing to candidates of the opposing party,' and 'unusually frequent' donations from vulnerable individuals, including senior citizens and first-time donors."

Jordan and Steil appear keen to know more about the security measures provided to ActBlue by Sift, given that the measures may have been exploited by bad actors at home and abroad.

The House Administration Committee is likely to explore these and other concerns about the platform at its Dec. 18 hearing on foreign interference in American elections.

ActBlue told its users in an Oct. 30 statement that it "holds itself to the highest legal and ethical standards, and all contributions made through ActBlue are disclosed in full compliance with federal, state, and local laws."

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