§ Constitutional Amendment
Federal Election Commission Reform
Current Status
Existing Law
- Federal Election Commission created by Federal Election Campaign Act (1974)
- Six commissioners with equal party representation (3-3 split)
- Requires four votes for action
Current Authority
- Civil penalty authority for campaign finance violations
- Limited criminal prosecution referral authority
- Investigatory powers over federal campaign finance
Existing Limitations
- Frequent deadlocks prevent enforcement due to partisan split
- Four-vote requirement creates gridlock
- Civil penalties often minimal
- Investigations delayed for years
- No real-time disclosure enforcement
- Budget insufficient for mission
Problem
Specific Harm
- 3-3 partisan split creates deadlock preventing enforcement
- Four-vote requirement for action enables obstruction
- Years-long investigation timelines allow violations to affect elections
- Super PACs and dark money groups operate with minimal oversight
- Shell companies hide funding sources without consequence
Who is Affected
- Voters lacking transparency about campaign funding sources
- Candidates competing against illegally funded opponents
- Democratic institutions undermined by unenforced laws
- Public trust in electoral integrity
Gaps in Current Law
- Minimal civil penalties insufficient to deter violations
- Limited criminal prosecution referral authority
- No injunctive authority to halt ongoing violations
- No real-time disclosure requirements
- No authority to pierce corporate veils
- Foreign money violations difficult to detect and prosecute
Accountability Failures
- Documented pattern of 3-3 deadlocks preventing enforcement
- Minimal penalties failing to deter violations
- Years-long investigations allowing illegal activity to affect multiple election cycles
- Super PAC spending totaling billions without effective oversight
- Dark money sources hidden through shell companies
- Foreign money violations detected but not prosecuted effectively
Proposed Reform
Primary Policy Change
- Restructure Commission to five or seven commissioners preventing partisan deadlock
- No single political party may hold more than a bare majority of seats
- Commissioners shall serve staggered fixed terms with removal only for cause
New Requirements
- Commission shall maintain public searchable databases updated in real-time
- 90-day investigation timeline for complaints absent extraordinary circumstances
- 30-day decision timeline following investigation completion
- All enforcement actions shall have expedited judicial review
- Minimum 200+ staff investigators, data scientists, forensic accountants, and attorneys
New Prohibitions
- All funds raised or spent in violation of law subject to forfeiture
- Willful violations of federal campaign finance law shall constitute felonies punishable by imprisonment and fines
Enforcement
- Criminal prosecution authority for knowing and willful violations with DOJ referral
- Injunctive authority to seek temporary restraining orders and preliminary injunctions
- Full investigatory and enforcement authority over all entities including super PACs, dark money organizations, shell companies, and fiscal sponsorship arrangements
- Authority to pierce corporate veils to reveal actual funding sources
- Asset forfeiture for illegal funds
What Changes
| Before | After |
|---|---|
| Six commissioners with 3-3 partisan split creating deadlock | Five or seven commissioners with no party holding more than bare majority |
| Four votes required for action enabling obstruction | Streamlined decision-making preventing partisan obstruction |
| Investigations take years allowing violations to affect elections | 90-day investigation timeline, 30-day decision timeline |
| Limited criminal prosecution authority | Authority to refer criminal violations to DOJ; willful violations are felonies |
| No injunctive authority | Authority to seek TROs and preliminary injunctions |
| Super PACs and dark money operate with minimal oversight | Full jurisdiction over super PACs and dark money groups |
| Shell companies hide funding without consequence | Authority to pierce corporate veils revealing actual funding sources |
ROI
Federal Budget Impact (10-Year, Estimated)
Note: Constitutional amendments are not CBO-scoreable. Estimates based on comparable programs, research, and implementing legislation projections.
Costs:
| Item | 10-Year | Source |
|---|---|---|
| FEC Restructuring & Expanded Staff (200+ additional personnel) | $0.60B | ¹ |
| Technology Modernization (Real-time disclosure systems) | $0.15B | ² |
| Enhanced Investigatory Capacity | $0.20B | ³ |
| Implementation & Transition | $0.05B | ⁴ |
| Contingency (15%) | $0.15B | |
| Total | $1.15B |
Savings:
| Item | Gross | Capture | Net | Source |
|---|---|---|---|---|
| Increased Civil Penalties & Fines Collection | $0.50B | 75% | $0.38B | ⁵ |
| Asset Forfeiture from Campaign Finance Violations | $0.25B | 50% | $0.13B | ⁶ |
| Reduced Deadlock (Efficiency Gains) | $0.15B | 80% | $0.12B | ⁷ |
| Total | $0.90B | $0.63B |
Result: Net -$0.52B (Estimated - Not CBO-Scoreable)
Societal Benefits
| Benefit | Annual | NPV (3%) | NPV (7%) | Source |
|---|---|---|---|---|
| Reduced Dark Money (Enhanced Transparency) | $0.50B | $4.26B | $3.51B | ⁸ |
| Increased Voter Confidence/Participation | $0.25B | $2.13B | $1.76B | ⁹ |
| Deterrence of Foreign Election Interference | $0.15B | $1.28B | $1.05B | ¹⁰ |
| Reduced Corruption Economic Costs | $0.20B | $1.71B | $1.41B | ¹¹ |
| Total | $1.10B | $9.38B | $7.73B |
Summary
| Category | 10-Year | Notes |
|---|---|---|
| Federal Budget | -$0.52B | Estimated - Not CBO-scoreable; net cost reflects expanded enforcement |
| Societal | $7.73B - $9.38B | NPV at 3-7%; transparency and democratic participation benefits |
Confidence: MEDIUM
Estimation Basis: Federal budget costs derived from FEC's FY 2025 requested funding level of $93.5 million representing a 14 percent increase from assumed FY 2024 appropriation, scaled for a 200+ staff increase from current staffing of 293 employees at the end of FY 2024, down from 309 at the end of FY 2023. Savings estimates based on FEC administrative fines of approximately $9.5 million from 2001 to May 2023 and potential for expanded penalties. Dark money societal costs informed by dark money groups spending at least $4.3 billion on federal elections since Citizens United and $1.3 billion in contributions from shell companies and 501(c) nonprofits to super PACs in the 2024 election cycle—more than in the prior two election cycles combined. Deadlock impact based on FEC data showing 531 MURs examined, with 269 (50.6%) having at least one vote where no position received four or more Commissioner votes, and between 1996 and 2006, the FEC tied in only 2.4% of MURs, but by 2016 commissioners deadlocked on more than 30% of substantive votes. Voter confidence benefits reflect research showing trust gaps can decide elections, as the number of voters deterred by low confidence exceeds the margin of victory in many key races and that 80 percent of U.S. adults say campaign donors have too much influence over congressional decisions, and 84 percent say special interest groups and lobbyists wield excessive power.
References
Needs references - to be added in future update
Change Log
- 2025-12-13 - ROI Research: Added researched ROI estimates via Opus 4.5 batch process
Date Change Source 2025-12-08 Amendment standardization: ROI set to TBD pending CBO scoring; removed unsubstantiated figures Batch processor 2025-12-08 Standardized to legislation template format Batch standardization