Dccc v. Federal Election Commission

CourtDistrict Court, District of Columbia
DecidedNovember 1, 2024
DocketCivil Action No. 2024-2935
StatusPublished

This text of Dccc v. Federal Election Commission (Dccc v. Federal Election Commission) is published on Counsel Stack Legal Research, covering District Court, District of Columbia primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Dccc v. Federal Election Commission, (D.D.C. 2024).

Opinion

UNITED STATES DISTRICT COURT FOR THE DISTRICT OF COLUMBIA

DCCC,

Plaintiff,

v.

FEDERAL ELECTION COMMISSION, Civil Action No. 24-cv-2935 (RDM)

Defendant,

NRSC,

Intervenor-Defendant.

MEMORANDUM OPINION AND ORDER

Plaintiff Democratic Congressional Campaign Committee (“DCCC”) is a national

campaign committee for the Democratic Party dedicated to electing Democratic candidates to the

U.S. House of Representatives. Dkt. 1 at 5 (Compl. ¶ 14). As part of its mission, the DCCC

makes contributions and expenditures to support Democratic congressional candidates. Those

contributions and expenditures are subject to the Federal Election Campaign Act of 1971

(“FECA”), 52 U.S.C. § 30101 et seq. Id. The DCCC alleges that, in the run-up to the 2024

election, one of its competitors, the National Republican Senatorial Committee (“NRSC”), has

been circumventing FECA’s contribution and coordinated party expenditure limits by running

sham joint fundraising ads, which have very little to do with fundraising and very much to do

with election advocacy. According to the DCCC, the NRSC has used this strategy to spend “tens

of millions of dollars on television advertisements to expressly advocate for the election of

Republican candidates in full coordination with those candidates,” Dkt. 1 at 1 (Compl. ¶ 1), “well beyond the limits for contributions and coordinated party expenditures set forth in” FECA,

Dkt. 6 at 9.

Administrative proceedings leading up to this case began in September 2024, when the

Democratic Senatorial Campaign Committee (“DSCC”), which supports Democratic candidates

for the U.S. Senate, sought an advisory opinion from the Federal Election Commission (“FEC”

or “Commission”), asking whether funds spent on advertisements like those funded by the NRSC

and candidates that it supports should be counted as contributions for the purposes of FECA.

Dkt. 6-1 at 2. “In order to allow participants in the political process to operate with substantial

certainty regarding their legal obligations, [FECA] permits people to request advisory opinions

from the FEC regarding whether a ‘specific [proposed] transaction or activity by the person’ is

legally permissible.” Ready for Ron v. FEC, No. 22-3282 (RDM), 2023 WL 3539633, at *3

(D.D.C. May 17, 2023) (quoting 52 U.S.C. § 30108(a)(1)). If the FEC approves of a practice in

an advisory opinion, the party that requested the opinion, “and any person involved in an

identical transaction or activity to that described in the request, may rely in good faith on the

opinion and will be protected from any sanction under FECA that might otherwise attach to the

transaction or activity.” McCutcheon v. FEC, 496 F. Supp. 3d. 318, 324–25 (D.D.C. 2020)

(citing 52 U.S.C. § 30108(c)). FECA further provides, however, that no advisory opinion shall

be issued absent “the affirmative vote of [four] members of the Commission.” 52 U.S.C.

§ 30106(c); see also id. § 3010(a)(7). And because the Commission is composed of six

members, “[n]o more than” three of whom “may be affiliated with the same political party,” id.

§ 30106(a)(1), tie votes are both common and indecisive. That is what happened here. The FEC

split three-three in its consideration of the DSCC’s request for an advisory opinion, leaving that

committee—and others—without the benefit of the safe harbor.

2 At that point, the DSCC dropped the matter. Its sister campaign committee, the DCCC,

however, picked up where the DSCC left off. On October 17, 2024, the DCCC brought the

pending suit, alleging that that the NRSC and other campaign committees “are exploiting this

self-created loophole” to engage in coordinated spending in excess of the limits set in FECA.

Dkt. 1 at 15. By doing so, the DCCC alleges, the NRSC has unfairly tipped the playing field in

its favor, and by failing to issue an advisory opinion either rejecting or approving this loophole,

the FEC “has left the DCCC between a rock and a hard place during the most critical weeks of

campaigning,” Dkt. 6 at 9. It can either “mimic the Republicans’ newfound tactic, but at the risk

of exposing itself to future enforcement by the FEC,” or it can comply with the dictates of the

FECA, at the cost of accepting an uneven playing field. Id. According to the DCCC’s

complaint, “[t]he FEC’s failure to issue an advisory opinion was ‘not in accordance with law’

and [was] ‘contrary to constitutional right[s]’ in several respects,” in violation of the

Administrative Procedure Act (“APA”), 5 U.S.C. § 706(2). Dkt. 1 at 27 (Compl. ¶ 93). The

complaint seeks injunctive relief setting aside the FEC’s October 10, 2024 “closeout letter” and a

declaration “that expenditures made by a national party committee in cooperation, consultation,

or concert with a candidate for television advertisements with joint fundraising solicitations are

‘contributions’” within the meaning of FECA and are “thus subject to FECA’s limits.” Dkt. 1 at

27.

Shortly after filing suit, the DCCC filed a motion for a preliminary injunction requesting

that the Court consolidate the preliminary injunction with an expedited trial on the merits,

pursuant to Rule 65(a)(2), or, in the alternative, issue “a preliminary injunction that vacates and

sets aside the FEC’s October 10 final order as arbitrary and capricious and contrary to FECA.”

3 Dkt. 6 at 1–2, 38. The next day, the Court issued an order setting a scheduling conference for

October 21, 2024, and requiring the DCCC to ensure that the FEC received actual notice of that

order. Min. Order (Oct. 18, 2024). Then, at the scheduling conference, the Court set a briefing

schedule and a hearing date. Min. Entry (Oct. 21, 2024). The NRSC subsequently moved to

intervene, and the Court granted that motion. Dkt. 14; Min. Order (Oct. 23, 2024). Finally, the

Court heard argument from the DCCC, the FEC, and the NRSC on October 28, 2024.

For the reasons explained below, the Court will DENY the DCCC’s request to

consolidate its motion for a preliminary injunction with trial on the merits and will DENY the

DCCC’s motion for a preliminary injunction.

I. BACKGROUND

A. Statutory and Regulatory Background

The Federal Election Campaign Act sets forth a comprehensive scheme regulating federal

campaign finance. See Fed. Election Comm’n v. Akins, 524 U.S. 11, 14 (1998); Campaign Legal

Ctr. v. FEC, 31 F.4th 781, 784 (D.C. Cir. 2022). It imposes disclosure and reporting

requirements on candidates for public office and their campaign committees, 52 U.S.C.

§ 30104(b)(3)(A), and limits on the amounts that individuals and organizations may contribute to

a candidate for federal office, id. § 30121(a)(1)(A).

FECA defines a “contribution” to include “any gift, subscription, loan, advance, or

deposit of money or anything of value made by any person for the purpose of influencing any

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