HR 8720: Campaign Finance Transparency Act

HR 8720 in plain English: This bill tightens campaign finance rules for federal elections by requiring political committees to collect additional verification information for online credit and debit card donations, mandating that donor names match the card used, and removing the existing $200 threshold so that all contributions—regardless of amount—must be reported to the FEC.

Stated purpose

The bill aims to strengthen transparency and prevent fraud in federal campaign finance by requiring political committees to collect more verification information for online credit and debit card contributions and by expanding disclosure requirements for all contributions.

Key points

• Removes the $200 threshold, requiring political committees to report identifying information for all contributions, no matter the size
• Requires online card donations to include the card's verification code and billing ZIP Code
• Prohibits accepting contributions if the donor's name does not match the name on the card used
• Bans contributions made via gift certificates or store gift cards
• Requires reporting to the FEC any contribution suspected of being made in another person's name

Arguments supporters make

• Collecting card verification codes and billing addresses makes it much harder for foreign nationals or fraudsters to make illegal donations using stolen or misused card numbers.
• Removing the $200 reporting threshold means voters and watchdog groups can see every dollar flowing to campaigns, making money in politics more transparent.
• Requiring that the name on a card match the donor's name closes a known loophole that has allowed contributions to be made in someone else's name.

Arguments opponents make

• Eliminating the $200 disclosure threshold means even very small donors must have their names and addresses publicly reported, which could discourage ordinary people from participating or expose them to unwanted contact.
• The added verification steps and documentation requirements could be technically burdensome for smaller campaigns and committees that lack sophisticated online fundraising systems.
• Requiring overseas citizens to upload passport copies or other sensitive documents to donate online raises privacy concerns and could effectively prevent many eligible Americans abroad from participating in the political process.

Tradeoffs

Stronger fraud prevention and greater public transparency come at the cost of increased administrative burdens on campaigns and reduced privacy for small donors; stricter identity verification protects against illegal foreign money but may also make it harder for some eligible Americans to donate.

Current status in Congress: In committee.

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