For more than a decade, America's election watchdog has been the epitome of dysfunction: Evenly split between three Republicans and three Democrats, the Federal Election Commission has often been the subject of political jokes, with investigations stalled, enforcement slow, and efforts to update guidelines for the internet age stalled.
Now the committee is suddenly at an impasse.
In a series of recent decisions that are upending the money landscape in American politics, a new coalition of three Republicans and one Democrat has voted together to eliminate limits on how politicians, political parties and super PACs can raise money and spend it.
Reform groups have been stunned to see longstanding constraints being quickly lifted, and conservatives who have long dreamed of deregulation are celebrating, even though many of the rulings were written by one of the Democratic Party's most prominent lawyers, Marc Elias, who has sought political advantage and transparency for his client.
One thing people on both sides of the ideological divide agree on is that the changes represent some of the most significant regulatory overhauls since the McCain-Feingold campaign finance law was enacted two decades ago.
“These decisions mark a landmark shift in the law at the commission,” said Federal Election Commission Chairman Sean Cooksey, a Republican. “Deregulation is winning.”
New Swinging Vote
At the center of this shift is Chairwoman Dara Lindenbaum, a Democrat who has repeatedly disagreed with her Republican colleagues since being appointed by President Biden and confirmed by the Senate by a 54-38 vote in 2022. The rifts within the once-united Democratic Party have become so tense that at one point an actual peace offer, raised for $16 on Etsy, was offered as a peace offer but was rejected.
“We're in a new era,” said Adab Noti, executive director of the Campaign Legal Center, which advocates for stricter interpretation and enforcement of the law. “The speed with which rules are being gutted is breathtaking. There has been more pumping of money into the system in the last two years than in the previous 20 years combined.”
One decision this spring that is already changing the face of the 2024 presidential election is allowing super PACs and campaigns to work together for the first time to plan and carry out expensive door-to-door canvassing efforts. Previously, politicians were barred from coordinating strategies with super PACs, which can raise unlimited amounts of money, in an effort to limit the influence of big donors on candidates.
But the commission ruled that election campaigns are exempt because they don't constitute “communications to the public,” allowing politicians and super PACs to work more closely together than ever before.
Another recent ruling allowed federal candidates for the first time to raise unlimited funds for state-level ballot measures.
The commission has ruled that wealthy donors can place money in trusts that then distribute the money to campaigns, but the sources of the contributions must remain anonymous. It also loosened restrictions in 2022, ruling that certain types of mass text messages don't qualify as “official communications.”
All of these decisions, along with many others, were made by 4-2 votes, with Lindenbaum serving as swing commissioner.
“It's inexplicable and astonishing,” said Sen. Sheldon Whitehouse, a Rhode Island Democrat and one of his party's leading voices for curbing the influence of money in politics. Mr. Whitehouse said he initially hoped Lindenbaum was making strategic concessions to gain other “strategic wins.” That's no longer the case. “I'm not seeing any indication that this is a deal,” he said. “This just looks like a surrender.”
“We were taken by surprise.”
In a wide-ranging interview, Lindenbaum downplayed his role and the impact of the ruling. “I don't think it necessarily changes anything,” he said. Instead, he said it simply followed the law and formalized what was actually happening — such as the 4-2 ruling that lawmakers could legally use PACs for personal gain.
“We don't need to stretch the law to cover behavior that we find bad or distasteful,” she said. “What the law says is different from what some people would like the law to say.”
At first glance, Lindenbaum seems like an unlikely left-wing apostate: She once marched with the left-wing anti-war group Code Pink and later served as lead counsel for Stacey Abrams, the progressive Georgia gubernatorial candidate, and her voting rights group.
“I think it came as a surprise to everyone because she comes from a progressive community,” said Craig Holman, a lobbyist for the consumer advocacy group Public Citizen.
But Lindenbaum's supporters and opponents alike say it's her work on the front lines of campaigns, where lawyers sort through the gray areas of the law to determine what can and can't be done, that has influenced her thinking.
Lindenbaum said her perspective as a lawyer who has defended politicians who faced “absurd” allegations of misconduct would be valuable to the committee. “I have the practical experience and I can explain why someone behaved the way they did,” she said.
Noti said he feared a backlash if he publicly aired his dissatisfaction with Lindenbaum, and that when Lindenbaum was a private attorney, a mutual acquaintance had challenged comments Noti had made publicly about one of his clients.
“I thought speaking out could make things worse, not better,” he said, “but with the recent string of rulings, I'm not sure how much worse it could get.”
Republican election lawyer Jason Torchinsky welcomed the recent string of rulings.
“Many of the issues facing the Federal Election Commission require practical application of campaign finance law, and Commissioner Lindenbaum brings that to the Commission from her many years of experience working as an attorney in this area,” he said.
Real olive branch
Established in the wake of the Watergate scandal, the committee experienced brief periods of cordiality, but for 15 years the body seemed to be in 3-3 stalemate on every issue.
Donald F. McGahn II, who became commissioner in 2008 and later became first White House counsel to President Donald J. Trump, imposed discipline on the Republican campaign upon his arrival. The Democratic opposition leader was Commissioner Ellen Weintraub, who had served on the commission since 2002.
The dysfunction was so bad that by 2021, Weintraub had pressured Democrats to adopt the unusual tactic of refusing to end the stalled investigation in hopes of suing the committee for inaction. Democrats then refused to provide lawyers to defend the committee in court.
Lindenbaum unravelled that strategy almost immediately, voting a fourth time to end all litigation, including some dating back to 2016.
It marked the beginning of what some say was a frosty relationship between Messrs. Lindenbaum and Weintraub, both Democrats, and it caused particular tension between them and Weintraub's longtime attorney, Tom Moore.
At some point in late 2022, Moore ordered an actual reconciliation branch on Etsy and presented it to Lindenbaum at the committee's holiday party, with a handwritten letter attached asking for the relationship to be repaired.
“I was sincere,” Moore said.
He heard no reply.
While Lindenbaum said it would be inappropriate to discuss another commissioner's aide in detail, he said of the incident, “Forgiveness can only come with a true apology and a true admission of wrongdoing. If I don't have a true admission of wrongdoing and admit what I did to arrive at the apology, then it's not an apology, and I will not accept it.”
Moore, who declined to comment on Lindenbaum's response, will leave the commission in 2023 and has watched with frustration as the commission moved from gridlock to deregulation.
“When nothing is happening, nothing bad is happening,” said Moore, now a senior fellow at the Center for American Progress. “Right now, bad things are happening.”
Lindenbaum has received a warmer welcome among Republicans, with Cooksey saying he knows her through their past political activism and the fact that they are both parents to young children.
“I doubt there's a single mainstream policy issue on which we can agree,” he said, “but I think we both agree that the current campaign finance system is cumbersome, overly complicated and often unfair.”
Lindenbaum said he is fighting for increased funding for the agency and is lobbying Congress to remove donors' addresses from online donation records.
Outside watchdog groups have raised concerns about the slow pace of investigations: A little-noticed footnote in Weintraub's recent statement said the Justice Department was actively investigating just three cases nationwide.
“Dara has taken the FEC from dysfunctional to functionally evasive of enforcement,” Holman said.
A partisan twist
A striking feature common to many of Lindenbaum’s most significant decisions is that they were sought by Elias, who has become the face of left-wing voting rights litigation.
But on the committee, Elias is known for pushing hard for loosening financial restrictions for his Democratic clients, including enacting new rules to allow super PACs and candidates to work together on campaigns, allowing federal employees to raise unlimited funds for ballot measures and relaxing rules on text messaging.
His role reveals a key ideological split on the left between those who oppose the influence of money and practitioners who want to elect more Democrats.
“Some advocacy groups are fighting over assumptions,” Elias said. “They're regulating something that's not real.”
Interestingly, the Senate Republican campaign organization has lobbied against some of the loose rules that Elias successfully pursued, warning against making significant changes in an election year.
“Our campaign finance system has to work,” Elias said, praising Lindenbaum for providing “clear guidance.”
Democrats and Republicans alike are keenly aware that Lindenbaum's term runs through 2027. “It's not over yet,” Cooksey said.
“Who would have thought that gridlock and dysfunction would become the good old days?” said Whitehouse, the Democratic senator.