In a significant move to protect the integrity of the U.S. electoral process, the White House has ordered a sweeping federal investigation into allegations of illegal political donations funneled through online fundraising platforms. The directive, issued in a formal memorandum, calls on the Attorney General—working in coordination with the Secretary of the Treasury—to use all legal means necessary to uncover and address potential violations of campaign finance laws.
At the center of the concern are so-called “straw donations” and foreign contributions—both strictly prohibited under federal law. According to 52 U.S.C. §§ 30121 and 30122, it is illegal for any individual to make political donations in the name of another person or for foreign nationals to contribute to political campaigns in the United States. However, recent press reports and congressional investigations suggest that some online platforms may have become unwitting—or even willing—participants in schemes designed to bypass these regulations.
One alarming strategy reportedly involves breaking down large political donations from a single source into numerous smaller contributions attributed to different individuals, some of whom may not even be aware their names and identities are being used. In some cases, these contributions appear to originate from “dummy” accounts and are made using gift cards or prepaid credit cards—tools that make it difficult to trace the true source of the funds.
Even more troubling is the reported involvement of foreign actors. A House of Representatives investigation recently revealed that ActBlue, a prominent Democratic fundraising platform, had detected at least 22 major fraud campaigns in recent years. Nearly half of these operations were linked to foreign entities. Within just a 30-day window during the 2024 campaign cycle, ActBlue flagged 237 donations originating from foreign IP addresses and using prepaid cards—a glaring indicator of ongoing attempts to circumvent U.S. election laws.
“These activities undermine the integrity of our electoral process,” the memo warns, underlining the urgency of the situation.
The President has given the Attorney General 180 days to conduct the investigation and report the findings to the White House. While the memorandum makes clear that it does not create any legal rights enforceable by individuals, it signals a strong federal commitment to closing loopholes and ensuring that all political contributions are lawful, transparent, and in line with longstanding campaign finance regulations.
With the 2026 midterm elections on the horizon, the directive serves as a stark warning to fundraising platforms and political operatives alike: the days of lax oversight and ambiguous accountability in online campaign financing may be coming to an end.
