The SCAM PAC Act targets what Congress calls "scam PACs"—political committees that mislead donors by promising to support candidates but instead funnel most money to fundraising vendors, consultants, and organizers with financial ties to the committees' leadership. The bill prohibits political committees from disbursing funds to entities owned or controlled by the committee's executives, managers, fundraisers, employees, or their family members, unless the committee spends a majority of its funds on legitimate political activities like supporting candidates or making independent expenditures. The legislation applies 90 days after enactment and includes an exception for authorized candidate committees, party committees, and corporate or labor union political funds. The Federal Election Commission must issue implementing regulations within 90 days of the law's passage. The bill aims to combat what the FEC identified as a significant problem of election fraud and self-dealing that undermines public confidence in the political system.
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