[Congressional Record Volume 145, Number 11 (Friday, January 22, 1999)]
[Senate]
[Page S900]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SHELBY:
  S. 298. A bill to amend the Federal Election Campaign Act of 1971 (2 
U.S.C. 431 et seq.) to clarify that donations of hard and soft money by 
foreign nationals are prohibited; to the Committee on Rules and 
Administration.


             prohibition of donations by foreign nationals

 Mr. SHELBY. Mr. President, I rise today to speak in support of 
legislation that I am introducing which is intended to prevent foreign 
nationals from making financial contributions to federal elections.
  Last October, in the trial of Charlie Trie, Judge Paul L. Friedman 
ruled that the Federal Election Campaign Act (FECA) does not prohibit 
foreigners from making campaign donations to political parties or 
Congressional Campaign Committees. The holding of this case is based on 
an extremely narrow reading of the language of the FECA. Judge Friedman 
ruled that because the FECA specifically prohibits foreign nationals 
from making direct contributions to the campaigns of candidates for 
federal office but does not specifically prohibit donations, or ``soft 
money'' expenditures to the parties, such donations are not prohibited 
by the FECA. While we can argue the merits of this decision and 
question whether it merely tracks the letter rather than the entire 
spirit of the FECA, it is quite clear that this ruling opens up our 
system of federal elections to the possibility of foreign influence.
  My bill clarifies the law by amending the FECA to prohibit donations 
by foreign nationals to ``a national committee of a political party or 
a Senatorial or Congressional Campaign Committee of a national 
political party for any purpose.'' This new provision along with the 
existing prohibition of direct contributions by foreign nationals, will 
provide the Federal Election Commission with the ability to prosecute 
those who illegally attempt to influence federal elections. Ultimately, 
my bill will get us closer to achieving the desired effect originally 
contemplated by the FECA--ensuring that federal campaigns are free of 
foreign money.
  Mr. President, regardless of any member's views concerning the 
direction that campaign finance reform should take, I believe that 
amending the FECA to prohibit foreign influence in federal campaigns 
requires swift action.
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