Government watchdogs Campaign Legal Center and End Citizens United have filed a complaint with the Federal Election Commission accusing Ted Cruz of violating federal campaign finance laws. The complaint alleges that Cruz directed ad revenue from his podcast, “Verdict with Ted Cruz,” to a super PAC supporting his re-election campaign. This comes after the Truth and Courage PAC received hundreds of thousands of dollars from iHeartMedia, the company that produces Cruz’s podcast.
In October 2022, Cruz announced that iHeartMedia had offered to fund and market his podcast, calling it a “big damn deal.” iHeartMedia is a registered lobbyist and has spent millions on lobbying efforts, raising concerns about potential violations of federal laws. Despite a previous complaint filed with the Senate Select Committee on Ethics, Cruz’s office maintained that the deal was legitimate, as the senator does not receive any financial benefits from the podcast.
Campaign Legal Center and End Citizens United point out notable differences between Cruz’s podcast arrangement and a typical television appearance. The super PAC, Truth and Courage, reported receiving payments totaling $630,000 from iHeartMedia, with the latest payment of $215,000 labeled as “digital revenue.” The watchdogs argue that these payments violate campaign finance laws by allowing Cruz to indirectly benefit from contributions that exceed legal limits.
The complaint alleges that Cruz may have directed iHeartMedia to transmit funds to the super PAC in support of his candidacy. It also accuses Truth and Courage of misreporting the funds received from iHeartMedia, stating that they should have been classified as contributions. While Cruz, the super PAC, and iHeartMedia have not responded to requests for comment, Campaign Legal Center is calling for a swift investigation by the FEC to determine Cruz’s involvement in the alleged transfer of funds.
The FEC investigation into Cruz’s campaign finance practices may take years to conclude, but iHeartMedia’s payments to Truth and Courage could be affected by recent controversies. Following the revelations about the super PAC’s funding sources, at least one advertiser has requested that its ads be removed from Cruz’s podcast. This adds to previous complaints made against Cruz, including allegations of misusing campaign funds and his role in the January 6 insurrection, which are still under review by the relevant authorities.
Campaign Legal Center and End Citizens United, both nonpartisan organizations, are committed to promoting democracy and removing big money from politics. Campaign Legal Center was founded by a former FEC chair, while End Citizens United consists of experienced Democratic operatives. As the FEC investigates the latest complaint against Cruz, the outcome could have implications for his re-election campaign and future political activities.
