United States Chamber of Commerce - Electoral Activities

Electoral Activities

In the 2008 election cycle, aggressive ads paid for by the USCC attacked a number of Democratic congressional candidates (such as Minnesota's DFL Senate candidate Al Franken) and supported a number of Republican candidates including John Sununu, Gordon Smith, Roger Wicker, Saxby Chambliss and Elizabeth Dole.

During the 2010 campaign cycle, the Chamber spent $32 million, 93 percent of which was to help Republican candidates. The Chamber's spending out of its general funds was criticized as illegal under campaign finance laws. In a front-page article titled "Large Donations Aid U.S. Chamber in Election Drive", The New York Times reported that the Chamber used contributions in campaigns without separating foreign and domestic contributions, which if true would appear to contravene prohibitions on lobbying by foreign nations and groups. In question was the Chamber's international branches, "AmChams," whose funds are unaccounted for and perhaps mix into the general collection. All branches, corporations, and members of the Chamber pay dues; the question is how they divide the money for expenses in national campaigns.

The truth of these allegations is unknown, as neither the Chamber nor its detractors can provide any concrete evidence to support or refute the allegations. In reference to the matter, Tom Donohue wrote his council and members on October 12, 2010. He stated, “Let me be clear. The Chamber does not use any foreign money to fund voter education activities—period. We have strict financial controls in place to ensure this. The funds we receive from American Chambers of Commerce abroad, bilateral business councils, and non-U.S. based global companies represent a small fraction of our more than $200 million annual revenues. Under our accounting system, these revenues are never used to support any political activities. We are in full compliance with all laws and regulations.” Organizations Moveon.org, Think Progress, and People for the American Way rallied against the Chamber at the Justice Department to start an injunction for a criminal investigation. As of yet, the Justice Department has not taken any inquiries as a serious legal threat. The Chamber is not required to produce records of its coffers or fundraising.

President Barack Obama and other legislators asked the IRS and Federal Elections Commission to ensure that the foreign funds that the Chamber receives are not used for political activities. Obama criticized the Chamber for not disclosing its contributors. The Chamber has responded that “No foreign money is used to fund political activities.” After the election, the Chamber reiterated the nature of Obama's policy dictated action from the Chamber, however the conflict would not be made "personal".

In addition to the expenditures from the Chamber's own funds, in 2010 its political action committee gave $29,000 (89 percent) to Republican candidates and $3,500 (11 percent) to Democratic candidates. The Chamber's PAC received a total of 76 donations from individual donors ($200 or more donation) totaling $79,852 in 2007-2008, or an average of three donations per month.

In 2011, the Chamber hosted a "GOP Holiday Party" honoring the Republican National Committee.

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