You want to know the purposes for which members of Congress may use surplus campaign funds when they wind down and terminate their campaign committee.

SUMMARY

Under the Federal Election Campaign Act of 1971 (FECA) (2 USC § 431 et seq. ), as amended, a federal office candidate or officeholder who is no longer actively seeking election may use surplus campaign funds for a variety of purposes, other than his or her personal benefit. When these candidates or officeholders, including members of Congress, wind down and terminate their principal campaign committee, they must settle all debts and obligations. They may make expenditures or disbursements for specified purposes, including winding down costs, charitable donations, transfers to party committees, and candidate contributions. Alternatively, they may use surplus funds in connection with a future election. (However, candidates who lose the primary, or otherwise do not participate in the general election, must refund any contributions they accepted toward the general election limit or redesignate them in accordance with law. )

SURPLUS CAMPAIGN FUNDS UNDER FECA

FECA requires candidates for federal office to designate a principal campaign committee no later than 15 days after becoming a candidate (2 USC § 432(e)(1)). (They may also designate additional “authorized committees” to receive contributions or make expenditures on their behalf. ) Generally, a principal campaign committee may terminate only if it (1) has no outstanding debts and obligations and (2) will no longer receive contributions or make disbursements. In addition to filing a termination report with the Federal Election Commission, these committees must also file a final accounting of receipts and disbursements, including a statement of how any surplus funds will be used.

Permissible Surplus Fund Uses

Federal office candidates and officeholders may use surplus campaign funds to defray campaign expenses, as well as for the following non-campaign purposes:

1. defrayal of ordinary and necessary expenses incurred in connection with the recipient's duties as a federal officeholder, if applicable, including travel connected with official responsibilities;

2. costs associated with winding down of a federal officeholder's office for six months after leaving office;

3. donations to certain charitable organizations;

4. unlimited transfer to any national, state, or local party committee;

5. donations to federal, state, or local candidates, subject to applicable contribution limits; or

6. any other lawful purpose (11 CFR §§ 113. 1(g) and 113. 2(a)-(e)).

Federal office candidates may also use their residual funds for a future election. They may transfer funds between their authorized committees without limitation if the committee making the transfer has no debts outstanding (11 CFR § 110. 1). Or, they may redesignate a former committee as the principal campaign committee for a current campaign (AO 1980-30).

Personal Expenses Prohibited

The law prohibits federal office candidates and officeholders from using surplus funds for personal expenses. To determine whether expenses are for personal use, the FEC uses the “Irrespective Test. ” Under this test, personal use means using campaign funds to fulfill a commitment, obligation, or expense that would exist irrespective of a candidate's campaign or responsibilities as a federal officeholder. Among others, personal expenses include household food items and supplies; clothing, except for the cost of campaign t-shirts, hats, etc. ; and entertainment expenses, unless the event is part of a specific campaign activity or officeholder activity (11 CFR § 113. 1).

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