WASHINGTON, D.C.—President Donald J. Trump on Thursday, April 24, signed an executive order to crack down on illegal “straw donor” and foreign contributions in American elections, following reports and congressional investigations regarding potentially unlawful activities through ActBlue and other online fundraising platforms.
Federal law (52 U.S.C. 30121 and 30122) strictly prohibits making political contributions in the name of another person, as well as contributions by foreign nationals.
The White House alleges that evidence suggests that online fundraising platforms such as ActBlue are being used to launder excessive and prohibited contributions to political candidates and committees. These bad actors evade Federal source and amount limitations by breaking down large contributions into smaller ones, often attributing them to numerous individuals without their consent or knowledge.
These “straw donations” are frequently made through “dummy” accounts, using methods such as gift cards or prepaid credit cards to avoid detection for which ActBlue, it alleges, has become notorious for its lax standards that enable unverified and fraudulent donations.
A recent House of Representatives investigation revealed that a platform named ActBlue had in recent years detected at least 22 “significant fraud campaigns”, nearly half of which had a foreign nexus. During a 30-day window during the 2024 campaign, the platform detected 237 donations from foreign IP addresses using prepaid cards, indicating that this activity remains a pressing concern.
Until recently, ActBlue accepted political contributions without requiring a card verification value (CVV), making it easy to contribute without identity verification. Before addressing this issue in response to a congressional investigation, ActBlue tested whether this would hurt its fundraising.
Further, there is evidence to suggest that foreign nationals are seeking to misuse online fundraising platforms to improperly influence American elections. These activities, the White House says, undermine the integrity of the U.S. electoral process.
President Trump hence signed an executive order on Thursday titled, “Investigation into Unlawful “Straw Donor” and Foreign Contributions in American Elections” directing Attorney General Pam Bondi, in consultation with the Secretary of the Treasury, to use all lawful authority, as necessary, to investigate allegations regarding the unlawful use of online fundraising platforms to make “straw” or “dummy” contributions or foreign contributions to political candidates and committees, and to take all appropriate actions to enforce the law.
The Attorney General has 180 days to report back to the Counsel to the President on the results of their investigation.
The Democratic National Committee, Democratic Senatorial Campaign Committee, Democratic Congressional Campaign Committee, and the Democratic Governors Association released a joint statement condemning Trump’s action:
“Donald Trump’s memorandum targeting ActBlue is designed to undermine democratic participation — and it’s no wonder why. He knows Americans are already fed up with his chaotic agenda that is driving the economy off a cliff, so he’s trying to block lawful grassroots donations from supporters giving just $5 or $10 to candidates who oppose him while further empowering the corrupt billionaires who already control his administration. As Democrats, we’re unified in standing with the millions of Americans who are fighting back against Trump’s dangerous abuses of power.”
Author: Mario Lotmore
