This election season has brought attention to the issue of foreign-influenced cash flowing into U.S. elections, posing a threat to national security and democracy. A survey conducted by OpenSecrets revealed that at least $163 million of foreign-influenced money was injected into state races between 2018 and 2022 across six states. This influx of cash from foreign sources has raised concerns about the integrity of U.S. elections and the impact on the democratic process.
The Supreme Court’s Citizens United v. FEC decision in 2010 inadvertently opened the door to foreign participation in U.S. elections. Multinational companies, fueled by foreign investor-financed dollars, have been spending large sums in state and federal elections. Companies like Uber, Lyft, and DaVita, with ties to foreign investors, have poured millions into campaigns to influence ballot measures and support their business interests. Foreign-influenced corporations are increasingly flexing their financial muscle in U.S. elections, raising alarms about the influence of foreign interests on American democracy.
Despite political divisions, there is widespread public agreement on the need to address foreign interference in U.S. elections. Civis Analytics/The Center for American Progress Action Fund found that nearly three-quarters of voters support banning corporations with any foreign ownership from contributing to candidates. The Urban-Brookings Tax Policy Center analysis showed a tenfold increase in foreign-owned U.S. corporate equity over the past four decades, making CEOs of American corporations increasingly accountable to foreign investors.
Foreign influence in U.S. elections can lead to rent-seeking behavior, where companies prioritize profits for overseas investors over the well-being of American citizens. Tax breaks passed by Congress in 2017 were found to predominantly benefit foreign investors, creating a financial burden on American taxpayers. Multinational corporations influenced by foreign investment may also prioritize profits over the health and welfare of U.S. citizens, as seen in the case of Big Pharma blocking Medicare from negotiating lower drug prices.
Efforts are underway to address the issue of foreign-influenced corporate spending in elections. States like Minnesota and Maine have passed laws prohibiting foreign-influenced corporate spending in elections, with other states following suit. Legislative measures are being introduced at the federal level to prevent companies with foreign ownership from using their resources for electioneering in the U.S. Restoring self-governance in U.S. elections is seen as a step towards leveling the playing field for American-owned businesses and safeguarding the integrity of the electoral process.
National security concerns have fueled bipartisan support for addressing foreign influence in U.S. elections, with the focus shifting towards protecting American interests. Reforming election laws to prevent foreign interference and ensuring that decisions about the country’s future are driven solely by American interests has become a priority. As the debate around foreign-influenced cash in U.S. elections continues, the push for legislative action to safeguard democracy and national security remains crucial.
