Prior Approval Reform Act
The Prior Approval Reform Act would amend the Federal Election Campaign Act of 1971 to remove the prior-approval requirement that trade associations must obtain before soliciting political contributions from the stockholders and executive or administrative personnel of their member corporations. The change applies to solicitations made on or after January 1, 2025. In effect, trade associations would have greater latitude to directly solicit contributions from individuals affiliated with member corporations, potentially expanding the pool of donors accessible to PACs or other political committees connected to those associations. The bill does not alter the general prohibition on corporate contributions, and other FECA provisions would remain in place.
Key Points
- 1What changes: The statute currently requiring prior approval for solicitations to stockholders and executives of member corporations would be eliminated by striking the relevant language in FECA (Section 316(b)(4)(D)) and ending the “prior approval” condition.
- 2Effective date: The removal of the requirement applies to solicitations made on or after January 1, 2025.
- 3Scope of change: Applies specifically to trade associations and their member corporations; allows solicitations directly to stockholders and executive/administrative personnel of those corporations.
- 4Non-impacted areas: The bill does not change the overall prohibition on corporate financial contributions to political committees or other FECA restrictions beyond the prior-approval requirement.
- 5Purpose and framing: Labeled as the “Prior Approval Reform Act,” signaling an intent to streamline or broaden fundraising activities for trade associations and their political committees.