May 3, 2011

Federal Contractors May Face Increased Disclosure Requirements for Political Spending

Last year’s Citizens United decision upheld disclosure requirements for political spending, but current federal law still permits anonymous contributions to certain groups that make political expenditures. Thus far, efforts to require disclosure of these contributions have been unsuccessful. After the DISCLOSE Act died last year in Congress, it appears President Obama may now turn to an executive order.

According to a recent Federal Times article, the administration is circulating a draft order that would require bidders for federal government contracts to disclose, for the two years prior to the bid, (1)contributions to or expenditures on behalf of federal candidates, parties, or party committees (including those by the bidder’s directors, officers, and affiliates or subsidiaries) and (2) contributions made to third party entities that would then be used for independent expenditures or electioneering communications.