Dark Money

Obfuscating Money in Politics: McCain-Feingold, USAID, and the NGO Network

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The debate over money in politics is defined by a core tension between the ideals of transparency, privacy, and mandated disclosure. Proponents of robust transparency and disclosure requirements (especially America Firsters) argue that voters have a fundamental right to know who is funding candidates, parties, and issue advocacy, as undisclosed “dark money” from wealthy individuals, corporations, unions, or foreign-linked entities can distort democratic outcomes, enable corruption or undue influence, and facilitate implementation of leftwing policies funded by US taxpayers without authorization or scrutiny. They push for lower reporting thresholds, real-time disclosures, and the closing of loopholes like super PACs and 501(c) organizations to let sunlight act as a disinfectant.

The US Treasury Department Goes After Dark Money

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On 23 April, the U.S. Treasury Department announced that the IRS plans to revise Form 990 — the annual information return filed by tax-exempt organizations — to improve transparency and strengthen oversight, specifically targeting reporting on government contracts, government grants, and fiscal sponsorship arrangements. The stated goals are to detect misconduct and hold wrongdoers accountable.

Treasury Secretary Scott Bessent framed it bluntly: “We are ending the days of hiding fraud, abuse, and extremist activity behind complicated nonprofit arrangements. When bad actors misuse charitable structures, directors and officers should understand that transparency can lead to scrutiny, accountability, and liability under the law.”