Foreign-influenced cash is pouring into U.S. elections, posing a threat to national security and the integrity of our democracy. Multinational companies have been allowed to spend hundreds of millions of foreign investor-financed dollars in state and federal elections, opening the door for foreign influence in American politics. The Supreme Court’s Citizens United v. FEC decision in 2010 inadvertently created this loophole, leading to companies like Uber, Lyft, and DaVita spending millions to influence election outcomes in their favor.
Opposition to this foreign meddling in elections is growing across party lines, with a majority of voters supporting efforts to ban corporations with foreign ownership from contributing to candidates. The increasing influence of foreign-owned U.S. corporate equity, now accounting for 40% in 2020, has raised concerns about rent-seeking behavior and the prioritization of profits over American interests. A Tax Notes report found that foreign investors benefited significantly from corporate tax breaks in 2017, passing on the burden to American taxpayers while increasing the national debt.
Foreign-influenced companies may prioritize profits over the well-being of American citizens, as seen in the lobbying efforts of Big Pharma to prevent Medicare from negotiating lower drug prices. The influence of overseas investors has also been linked to the funding of events like the insurrection at the U.S. Capitol on Jan. 6, 2021, highlighting the risks of allowing foreign entities to finance U.S. elections and politicians. Efforts are underway at the state and federal levels to address foreign-influenced corporate spending in elections, with legislation passed in Minnesota and Maine, and bills advancing in states like New York, Hawaii, and Washington.
Restoring self-governance in U.S. elections is crucial for the integrity of the democratic process and the fair representation of American interests. Prohibiting companies with significant foreign ownership from using their corporate treasuries for electioneering would level the playing field for American-owned businesses, especially small and medium-sized enterprises that are often drowned out by multinational corporations. By limiting foreign investor participation in elections, the focus can shift back to American interests and safeguard national security from undue foreign influence on election outcomes.
In a time when bipartisan support for safeguarding American interests and strengthening national security is growing, reforming election laws to prevent foreign influence is a critical step. By aligning the financing of our elections with 100% American interests, without the confusion of fiduciary duty to foreign investors, we can protect the integrity of our democracy and ensure that politicians work for the interests of the American people. The push for legislation at both the state and federal levels reflects a growing understanding among voters and experts that foreign-influenced cash has no place in U.S. elections.
