I hear Cancun is nice
U.S. Sen. Ted Cruz did not run afoul of campaign finance laws when the company that syndicates his podcast contributed nearly $1 million through a series of payments to a super PAC supporting Cruz’s reelection bid, the Federal Election Commission ruled.
In a 5-1 decision, the agency dismissed a complaint filed by campaign finance watchdog groups, who alleged that Cruz could have violated campaign funding rules if he played any role in iHeartMedia’s contributions to the pro-Cruz Truth and Courage PAC. Under federal law, candidates can only direct or solicit up to $5,000 in donations to super PACs, which can otherwise raise unlimited sums to support candidates.
iHeartMedia, a radio distribution and marketing giant, picked up Cruz’s podcast, “Verdict with Ted Cruz,” in 2022. The company gave $961,435 to Truth and Courage PAC through a series of seven donations between March 2023 and August 2024.
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A spokesperson for an iHeartMedia subsidiary has said the payments to Truth and Courage PAC were associated with the revenue it received from selling ads on Cruz’s podcast, for which Cruz himself is not paid. The watchdog groups, End Citizens United and the Campaign Legal Center, argued in a complaint that the “most reasonable and logical inference to be drawn from these circumstances” is that Cruz “requested or directed” iHeartMedia to donate to the super PAC “either directly or through his agents.”
In its Jan. 14 ruling, the FEC said that there was “no available information to indicate that Cruz solicited, directed, received, transferred, or spent the funds iHeart paid to the PAC.”
“Instead, it appears that the PAC and iHeart formed a business relationship regarding the Podcast in which iHeart would pay the PAC for the rights to air the Podcast,” the FEC’s decision reads. “Cruz’s role was limited to hosting the Podcast and he does not appear to have been involved with the decision for iHeart to pay the PAC, meaning that he did not direct or solicit any funds.”
The FEC noted that Cruz and the PAC, in a joint response denying the complaint’s allegations, acknowledged that Cruz attended a meeting with iHeart representatives to discuss its acquisition of “Verdict,” while Cruz’s campaign consultant, Jeff Roe, “attended additional discussions.” Still, the agency concluded, “the available information does not indicate that Cruz or Roe suggested how the Podcast’s profits were to be allocated.”
See here for the background. There were two other complaints filed over the same payments, but they were with the Senate Ethics Committee and are thus not part of this case. I don’t expect anything to happen there, but as far as I know they still exist. This is a situation where it would probably make sense for the rules to be clarified, but I don’t expect anything to happen there, either.