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Supreme Court to hear case by Texas GOP Sen. Cruz challenging campaign finance law

The 2002 Bipartisan Campaign Reform puts a $250,000 cap on a campaign committee's authority to repay the loans with donor contributions after the election.

Updated: October 1, 2021 - 12:00pm

The Facts Inside Our Reporter’s Notebook

The Supreme Court has agreed to hear Texas GOP Sen. Ted Cruz's challenge to a federal campaign finance law that limits the amount of money committees can raise after an election to reimburse loans made during a campaign.

Federal law allows candidates to make loans to their campaign committees without limit. However, the 2002 Bipartisan Campaign Reform puts a $250,000 cap on a campaign committee's authority to repay the loans after the election with donor contributions.

In Cruz's 2018 Senate reelection bid, he loaned his campaign $260,000, which is $10,000 over the limit and has resulted in him still being owed the money, according to CNN.

A lower court has already ruled in favor of Cruz, saying a loan-repayment restriction under federal campaign finance law violates the First Amendment.

A Cruz spokesman told CNN that existing Federal Election Commission rules "benefit incumbent politicians and the super wealthy by making it harder for challengers to run for office."

In his lawsuit, Cruz argued that the law imposed "arbitrary restrictions on core political speech."

The Biden administration supports the limits and says the loan was made with the "sole and exclusive motivation" to trigger the lawsuit, CNN also reports.

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