Chairman Steil Introduces Legislation to Strengthen Campaign Finance Laws

WASHINGTON - Committee on House Administration Chairman Bryan Steil (WI-01), along with Reps. Stephanie Bice (OK-05), Laurel Lee (FL-15), and Anthony D'Esposito (NY-04) introduced the Secure Handling of Internet Electronic Donations (SHIELD) Act. The SHIELD Act would prohibit political committees from accepting contributions from debit or credit cards without the disclosure of the card verification value (CVV) and billing address associated with the card. The legislation would also prohibit the acceptance of contributions from gift cards, pre-paid credit or debit cards, or gift certificates. Finally, the SHIELD Act will prohibit aiding and abetting making a contribution in another person's name.

"American elections should always be free from foreign interference," Chairman Steil said. "The SHIELD Act will take a crucial next step in blocking foreign funding in our elections and certifying that every political contribution received is actually coming from the individual whose name is on the contribution. By passing the SHIELD Act, we will increase integrity and American trust in our elections."

"There should not be loopholes that allow donors to contribute beyond the maximum limit under the law," Rep. Bice said. "As we wait to hear from the FEC about political entities like ActBlue, which do not require CVV verification and allow donations from pre-paid credit cards and gift cards, Congress must act. The SHIELD Act is an important step in closing these loopholes and preventing fraud in campaign donations, regardless of party."

"The SHIELD Act is a crucial piece of legislation that will strengthen current donor verification standards to ensure foreign and fraudulent actors are not donating to American political campaigns," Rep. Lee said. "Thank you, Chairman Steil for your leadership on this issue as we work to bolster election security and voter confidence."

"I am proud to co-sponsor this commonsense legislation to hold political action committees, like ActBlue, accountable for faulty and questionable campaign practices," Rep. Anthony D'Esposito said. "This critical legislation being led by Chairman Steil will institute stronger safeguards against fraud committed by individuals and organizations who work on overdrive to skirt campaign finance laws and sow chaos in our election process."

Read the full text of the SHIELD Act here.

Background:

The SHIELD Act comes as reports indicate major Democrat fundraising platform ActBlue was accepting political contributions without requiring a CVV. There were also reports of ActBlue accepting contributions from prepaid gift cards, debit cards and credit cards, which are susceptible to illegal straw donations.

On September 20, 2023, Chairman Steil held the first full committee hearing with the Federal Election Commission in over a decade.

On October 31, 2023 Chairman Steil sent a letter demanding answers on ActBlue's practices, questioning if they are complying with federal campaign finance laws and preventing foreign and illegal contributions.

On November 27, 2023, ActBlue responded to Chairman Steil's letter saying it did not require a CVV in order to contribute on their website.

On August 5, 2024, Chairman Steil sent a letter to Federal Election Commission (FEC) Chairman Cooksey and Vice Chair Weintraub requesting the FEC immediately initiate an emergency rulemaking process to require political campaigns verify the CVV of donors who contribute online and a rulemaking to prohibit political committees from accepting online contributions from gift cards or credit and debit cards. However, the FEC has declined to take any action.

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