Government watchdogs Campaign Legal Center and End Citizens United have accused Senator Ted Cruz of violating federal campaign finance laws by allegedly directing ad revenue from his podcast to a super PAC. The complaint was filed with the Federal Election Commission after the pro-Cruz Truth and Courage PAC received hundreds of thousands of dollars from iHeartMedia, the company that produces Cruz’s podcast.
The controversy began in October 2022, when Cruz announced that iHeartMedia would fund and market his podcast, “Verdict with Ted Cruz.” Despite concerns raised by Campaign Legal Center, Cruz’s office maintained that the deal was legitimate and above board, comparing it to appearances on network television or cable news shows. The Senate Ethics panel also found no violation of federal law and declined to take further action in February.
However, a new complaint filed with the FEC alleges that Cruz may have directed funds from iHeartMedia to the super PAC supporting his re-election, Truth and Courage. The super PAC reported receiving payments totaling $630,000 from iHeartMedia, with the most recent payment described as “digital revenue.” According to Campaign Legal Center and End Citizens United, these payments violate campaign finance laws that prohibit coordination between candidates and super PACs.
The complaint argues that the funds should have been reported as contributions rather than “Other Federal Receipts (Dividends, Interest, etc.)” and accuses Truth and Courage of misreporting the money it received from iHeartMedia. The nonpartisan nonprofit organizations are calling on the FEC to investigate the matter and determine if Cruz played a role in directing the transfer of funds to the super PAC.
While it may take time for the FEC to conclude its investigation, iHeartMedia’s payments to Truth and Courage may already be dwindling. After news of the connection between advertising revenue and political contributions surfaced, at least one advertiser, BP America, requested its ads be removed from podcasts linked to campaigns or PACs. Cruz has faced other complaints in the past, including allegations of misusing campaign funds to promote a book and his alleged role in the January 6 insurrection.
The Campaign Legal Center and End Citizens United are committed to upholding democracy and advocating for transparency in campaign finance laws at the federal, state, and local levels. The organizations are urging the FEC to swiftly investigate Senator Cruz’s alleged involvement in directing ad revenue to the super PAC supporting his re-election. As the investigation unfolds, the future of iHeartMedia’s payments to Truth and Courage PAC remains uncertain.
It is essential to uphold campaign finance laws to prevent wealthy special interests from influencing political campaigns and potentially corrupting the political process. The outcome of the investigation into Senator Cruz’s actions regarding the ad revenue from his podcast could shed light on the extent of coordination between candidates and super PACs, and the potential consequences of violating campaign finance laws.
As the 2023 election approaches, voters in Texas and across the country are watching closely to see how the FEC handles the allegations against Senator Cruz. The issue highlights the importance of transparency and accountability in campaign finance, as well as the need for strong enforcement of laws that govern the flow of money in politics. Stay tuned for updates on this developing story.
