Campaign Finance Policy and a Lapse in Federal Appropriations: Frequently Asked Questions

Campaign Finance Policy and a Lapse in Federal Appropriations: Frequently Asked Questions

INSIGHTi

Campaign Finance Policy and a Lapse in
Federal Appropriations: Frequently Asked
Questions
September 27, 2023
Current appropriations for the federal government expire on September 30, 2023. If federal funds are not
appropriated for FY2024 before October 1, only certain functions may continue at federal agencies, and
many employees would be furloughed. This CRS Insight provides brief answers to frequently asked
questions concerning potential implications for campaign finance policy and Federal Election
Commission (FEC) operations. Several other CRS products discuss various aspects of past government
“shutdowns” resulting from a lapse in appropriations.
An appropriations lapse that affected the FEC would most directly affect campaign finance policy. The
FEC is an independent federal agency charged with civil enforcement and administration of federal
campaign finance law and regulation. A lapse in appropriations affecting other agencies, such as the
Department of Justice (DOJ), which enforces criminal law; or the Internal Revenue Service (IRS), which
administers parts of the Presidential Election Campaign Fund, also might affect campaign finance policy,
albeit less directly than a lack of funding for the FEC.
Is the FEC funded by federal appropriations?
Yes. FEC operations and personnel expenses are funded through annual appropriations acts. (The FEC
charges modest fees for some training conferences.) Enforcement penalties, such as those assessed
through the FEC’s Administrative Fine Program, are deposited into the general fund of the U.S. Treasury.
They do not affect the FEC’s budget or operations. Recent Congresses have provided funds for the FEC
through the annual Financial Services and General Government (FSGG) appropriations measures or
through omnibus bills.
The FY2023 Consolidated Appropriations Act (P.L. 117-328, Division E) provided $81.7 million for the
FEC. For FY2024, the FEC requested $93.5 million. That amount would be 14.4% more than the FY2023
enacted appropriation. In its report accompanying FY2024 FSGG bill H.R. 4664, the House
Appropriations Committee recommended $74.5 million. That amount would be 8.8% less than the
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FY2023 enacted appropriation. In its report accompanying Senate bill S. 2309, the Senate Appropriations
Committee recommended $81.7 million, the same amount as appropriated in FY2023.
What might happen at the FEC during a lapse in federal appropriations?
As discussed in other CRS products (such as this one), the Antideficiency Act requires that federal agency
operations cease during appropriations lapses, except in specific cases. Agencies publish shutdown plans
per Office of Management and Budget (OMB) guidance (OMB Circular A-11, Section 124).
On September 26, 2023, the FEC issued an updated plan outlining what would happen at the agency
during a FY2024 lapse in appropriations. The agency issued a similar version of the plan in July 2023.
The plan explains that “[v]irtually all core agency functions” would cease, including “[a]ll management,
legal, [human resources], financial and [information technology] functions not related to continuation of
permissible operations during furlough” would halt. These include, for example, enforcement of the
Federal Election Campaign Act (FECA), review of campaign finance disclosure reports, work on advisory
opinions and rulemakings, and assistance to political committees and members of the public regarding
campaign finance law. Functions that would continue, according to the FEC plan, include “[p]rotection
against imminent threats to Commission property, principally in electronic form”; and management, legal,
and human resources functions related to limited permissible operations, or restoration of operations upon
approved appropriations.
Approximately 90% of the FEC’s 309 full-time equivalent employees (FTEs), as of September 25, 2023,
would be furloughed during a shutdown. The September 26, 2023, shutdown plan identifies 32 FTE
positions that would be necessary to conduct excepted duties. The FEC staff director would serve as
furlough manager and would remain on duty. The general counsel also would remain on duty. Limited
personnel in FEC legal, human resources, information technology, and financial positions also would
continue working. Commissioners may continue working but, as with other personnel, would be unpaid
during a shutdown. Commissioner staffs are expected to be furloughed.
Provided that at least four commissioners remained in their positions during a shutdown, the commission
would not lose its policymaking quorum. However, because funds may not be expended or obligated, the
commission could not engage in regulatory or enforcement activity. Enforcement investigations or other
actions (e.g., assessing penalties) could be pursued after agency operations resumed. Enforcement
investigations that were ongoing before a shutdown also would be delayed during a shutdown. FECA
specifies a five-year statute of limitations.
Is campaign finance law still in effect during a lapse in federal
appropriations?
Yes. The FECA and other provisions in federal law and regulation affecting campaign finance policy
remain in effect.
Do campaign finance disclosure reports still have to be submitted during
a lapse in federal appropriations?
Yes. FECA requires disclosure reports, which summarize political committee financial activity, to be
submitted by specified deadlines. Most disclosure reports are due quarterly or monthly. The FEC
shutdown plan notes, however, that personnel would be unavailable to assist filers during an
appropriations lapse. Reports submitted during a shutdown would not be reviewed for compliance or, if
requiring manual processing, not be available for public review, until normal FEC operations resumed.

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May Members of Congress or other candidates fundraise or conduct
other campaign operations during a lapse in federal appropriations?
Yes. Political campaigns and other political committees (e.g., political action committees [PACs]) are
nongovernmental entities. Their operations are not affected by appropriations, and their strategic
decisionmaking generally is not subject to federal law or regulation, provided that the conduct is
otherwise lawful. During previous shutdowns, according to media reports, some political committees
have elected to continue fundraising; others have not. As with non-shutdown scenarios, Members and
congressional staff with questions about compliance with chamber rules may contact the House or Senate
Ethics Committees for individual guidance.

Author Information

R. Sam Garrett

Specialist in American National Government

Disclaimer
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to congressional committees and Members of Congress. It operates solely at the behest of and under the direction of
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information that has been provided by CRS to Members of Congress in connection with CRS’s institutional role.
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