Compliance Notes - Vol. 7, Issue 15

Campaign Finance & Lobbying Compliance

The U.S. House passed the Stop Foreign Funds in Elections Act (H.R. 3535) that would prohibit foreign funding of state and local ballot measures, referenda and recall elections. Proponents say the bill would extend existing prohibitions on foreign money in federal elections to state and local political contests, preventing foreign nationals from financing efforts that influence state and local elections. The bill was received in the Senate and referred to the Committee on Rules and Administration on July 14, 2026. (Thérèse Boudreaux, The Center Square)

The House Committee on Ways and Means advanced a package of bills on July 22, 2026, that would expand disclosure and compliance requirements for tax-exempt organizations, with a focus on foreign funding, political activity and fiscal sponsorship arrangements. The package included the Stopping Foreign Influence in Elections Act (H.R. 9771), which would penalize large tax-exempt organizations that receive contributions from foreign nationals and then donate to a political committee or 501(c)(4) organization within two years. Covered organizations would face a secondary excise tax, with penalties escalating for each prohibited contribution to a PAC and potentially resulting in a two-year suspension of tax-exempt status. The committee cited foreign-funded nonprofit networks and contributions routed through tax-exempt organizations to Super PACs as examples of the activity the bill is intended to address. (Ryan Murphy, EIN Presswire)

Government Ethics & Transparency

Colorado: The Colorado Elections Division is investigating gubernatorial nominee Victor Marx’s campaign over allegations that it accepted approximately $78,000 in excessive contributions during the 2026 primary election. The complaint alleges 197 contributions from 111 donors exceeded Colorado’s $1,450 contribution limit and the campaign accepted 10 cash contributions above the state’s $100 limit. The case stems from more than one hundred complaints filed by former Colorado GOP official Darcy Schoening, most of which were consolidated by election officials who concluded the campaign did not fully cure the alleged violations and have requested an administrative hearing. The Marx campaign said it is cooperating with regulators and working through the established process. (Marianne Goodland, Colorado Politics)

North Carolina: A newly disclosed search warrant in an ongoing North Carolina political corruption investigation alleges Greater Carolina, a nonprofit at the center of a lobbying probe, spent nearly $80,000 between 2022 and 2024 on entertainment and travel expenses, including Topgolf outings, Carolina Panthers events and a vacation rental among other expenditures. State investigators are examining whether the group’s spending, along with its organization of Kentucky bourbon-country trips for Republican lawmakers, was funded by liquor and gambling interests pursuing advantageous legislation. Four lobbyists have already been charged in connection with the Kentucky trips and have pleaded not guilty. While no lawmakers, Greater Carolina officials or the organization itself have been charged, investigators contend the spending records may provide evidence of additional criminal activity. Greater Carolina has previously characterized allegations related to the investigation as overstated. (Will Doran, WRAL)

Vermont: A first-of-its-kind report issued by the Vermont Secretary of State found approximately 20% of candidates seeking public office have failed to comply with the state’s campaign finance disclosure requirements. The Campaign Finance Transparency Report, published on July 16, 2026, revealed that 337 of the 422 candidates expected to appear on the August 2026 primary ballot have filed the required disclosures. Compliance rates varied significantly by office, with 97% of Vermont Senate candidates filing reports compared with fewer than 70% of county candidates. The Secretary of State’s office said it has contacted all noncompliant candidates who are published by name in the report and has offered to provide assistance to help campaigns meet the filing requirements. (Peter Hirschfeld, Vermont Public)

We read the news, cut through the noise and provide you the notes.

Compliance Notes from Nossaman’s Government Relations & Regulation Group is a periodic digest of the headlines, statutory and regulatory changes and court cases involving campaign finance, lobbying compliance, election law and government ethics issues at the federal, state and local level. Our attorneys, policy advisors and compliance consultants are available to discuss any questions or how specific issues may impact your business. If there is a particular subject or jurisdiction you’d like to see covered, please let us know.