Policy Impact Analysis - 117/S/4822

Bill Overview

Title: DISCLOSE Act of 2022

Description: 2022 This bill addresses campaign finance, including by expanding the prohibition on campaign spending by foreign nationals, requiring additional disclosures of campaign expenditures, and requiring additional disclosures regarding certain political advertisements. Specifically, the bill expands existing foreign money prohibitions to include disbursements for paid web-based or digital communications and federal judicial nomination communications. It also prohibits foreign nationals from contributing to campaigns related to ballot initiatives and referenda. The Government Accountability Office must, for each four-year election cycle, study and report on the incidence of illicit foreign money in federal elections. Next, the bill makes it unlawful to establish or use a corporation, company, or other entity with the intent to conceal an election contribution or donation by a foreign national. A violator is subject to criminal penalties—a fine, a prison term of up to five years, or both. Covered organizations (e.g., corporations, labor organizations, and political organizations) must, within 24 hours, file reports with the Federal Election Commission to disclose campaign expenditures of more than $10,000 during an election cycle. The bill also requires organizations to provide additional disclosures regarding political advertisements, including the donors who contributed the most money to that organization in the last year.

Sponsors: Sen. Whitehouse, Sheldon [D-RI]

Target Audience

Population: People influenced by or participating in democratic elections worldwide

Estimated Size: 258000000

• The bill targets campaign finance, focusing on transparency and preventing foreign influence in US elections. This directly affects voters in the United States, as it aims to ensure fair elections without foreign interference.
• All voters in the United States will potentially be affected because their electoral processes might become more transparent and less influenced by undisclosed money and foreign entities.
• Foreign nationals are directly mentioned as being impacted since the bill expands prohibitions on their involvement in various campaign-related activities.
• Political organizations, corporations, and other covered entities will need to comply with new reporting requirements, impacting how they operate financially and report donations and expenditures.

Reasoning

• The DISCLOSE Act is related to campaign finance reform, which primarily impacts political organizations, corporations, and voters. These entities make up diverse groups in the U.S. population.
• Most voters may see some indirect benefits in terms of election integrity, but specific impacts will vary significantly.
• Organizations involved in political funding must comply with new regulations, making their experiences more directly impacted by the policy.
• The budget constraints mean not all aspects of the policy can be thoroughly implemented immediately. Thus, tangible benefits or changes in wellbeing for most everyday citizens may not be highly visible, particularly in the early years.

Simulated Interviews

Cost Estimates

Key Considerations

• Implementation costs are primarily driven by increased workload on the FEC and GAO for compliance monitoring and reporting.
• The transparency aims of the bill do not directly lead to financial savings but intend to enhance accountability in campaign financing.
• Long-term benefits may include a more robust democratic process but are challenging to monetize.