An attempt to stem the use of “dark money” – in this case, political contributions by companies that contract with the federal government to independent groups that seek to influence political races – is back on the hot topics list for the White House. Administration officials say the executive order by President Barack Obama addressing the issue of transparency in donations during election periods is looming large again.
Such an order would require federal government contractors to disclose to the public their contributions to groups such as trade associations or advocacy groups seeking to influence political campaigns.
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One of the linchpins of Obama’s initial campaign for the presidency was to transform politics through campaign reforms. Congress, on the other hand, has not been friendly to such proposals, voting down the Disclose Act in 2012 that addressed campaign reform by seeking to have corporate interests disclose their political contributions. That legislation would have required independent groups to reveal the identity of their donors.
Since 2010, a Supreme Court ruling has been in place that prohibits the ban of political spending by corporations on political campaigns. That allowed unlimited donations for political campaigns by businesses and corporations.
Congress has previously approved language that would prevent an executive order that would require disclosure of contributions as part of the bidding process for those seeking to do business with the federal government. Some reform advocates are hopeful that an executive order issued now would include a provision to require disclosure from existing contractors.
This is an issue that federal government contractors and companies seeking to do business with the federal government should follow closely.