Commission approves regulations regarding use of campaign funds for candidate and officeholder security

On September 19, 2024, the Commission approved a final rule and explanation and justification amending its regulations at 11 CFR part 113 to clarify that federal candidates and officeholders may use campaign funds to pay for security measures so long as the security measures address ongoing dangers or threats that would not exist irrespective of the individual's status or duties as a federal candidate or officeholder.

Background

Under the Federal Election Campaign Act (the Act) and Commission regulations, contributions accepted by a candidate may not be converted to "personal use" by any person. "Personal use" is defined as the use of campaign funds "to fulfill any commitment, obligation, or expense of a person that would exist irrespective of the candidate's election campaign or individual's duties as a holder of Federal office." The Act and Commission regulations provide a non-exhaustive list of expenses that, when paid using campaign funds, constitute per se conversion of those funds to personal use. The Commission determines on a case-by-case basis whether the use of campaign funds to pay expenses other than those listed would be a prohibited conversion of the funds to personal use. In a series of advisory opinions, the Commission has authorized the use of campaign funds to pay for certain security measures. The final rule codifies several of these advisory opinions and addresses additional issues raised in those advisory opinions.

Final rule

The Commission's regulations at 11 CFR 113.1(g)(1) through (9) address the personal use of campaign funds. The final rule adds a new paragraph, 11 CFR 113.1(g)(10), that provides that the use of campaign funds for the reasonable cost of security measures for a federal candidate, federal officeholder, member of their family, and employees - as defined in 26 CFR 31.3401(c)-1 - of the candidate's campaign or the federal officeholder's office, is not personal use, so long as the security measures address ongoing dangers or threats that would not exist irrespective of the individual's status or duties as a federal candidate or officeholder. Payments for security measures must be made at the usual and normal charge for such goods and services.

The final rule also adds four subparagraphs, 11 CFR 113.1(g)(10)(i) through (iv), providing a non-exhaustive list of examples of security measures which would not be considered personal use:

• New subparagraph 11 CFR 113.1(g)(10)(i) lists non-structural security devices, such as hardware, locks, alarm systems, motion detectors, and security camera systems.
• New subparagraph 11 CFR 113.1(g)(10)(ii) lists structural security devices, such as wiring, lighting, gates, doors, and fencing, so long as such devices are intended solely to provide security and not to improve the property or increase its value.
• New subparagraph 11 CFR 113.1(g)(10)(iii) lists security personnel that are bona fide, legitimate, and professional.
• New subparagraph 11 CFR 113.1(g)(10)(iv) lists cybersecurity software, devices, and services.

Before promulgating rules or regulations, the Commission must transmit them to the Speaker of the House of Representatives and the President of the Senate for a thirty-legislative-day review period. The effective date of this final rule will be January 1, 2025.

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