Congress’ budget deal halts political disclosure efforts

A budget deal struck by congressional leaders would temporarily block efforts to force more disclosure of political contributors, a blow to advocates who have sought to curb the use of secret money in campaigns. The omnibus legislation would prohibit the Internal Revenue Service from using any federal funds in the coming fiscal year to revise or issue new rules governing the political spending of tax-exempt advocacy groups. The measure would effectively halt a two-year-long attempt by the IRS to set a clear limit on how much money such nonprofit groups, set up under Section 501(c)(4) of the tax code, can spend on politics.

House Speaker Paul Ryan (R-WI) heralded the measure as a win, saying that with the budget deal, Congress is “stopping the IRS from suppressing civic participation in 501(c)(4) organizations.” But advocates for greater transparency of political donations said the ban would make it harder for voters to know who is behind politically active groups. “It’s outrageous that lawmakers are interfering with the most modest measures to increase disclosure of political spending,” said Lisa Gilbert, who directs the watchdog group Public Citizen’s Congress Watch division. “The American people want -- and deserve -- to know who is trying to buy our elections.”