House Dems sue FEC accusing GOP of exploiting campaign loophole

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Sen. Daines 'concerned' over fundraising disparity but predicts 'we will win' majority

National Republican Senatorial Committee chair Steve Daines, in a Fox Digital interview, for the first time definitely says the GOP will recapture the Senate majority in November.

The House Democrats' campaign arm filed a lawsuit against the Federal Election Commission (FEC) Thursday, alleging the agency's failure to take action has led to Republican candidates using a campaign finance loophole in their television advertisements. 

The Democratic Congressional Campaign Committee (DCCC) filed its initial complaint for declaratory judgment and injunctive relief in D.C. District Court, which was first reported by Axios. The DCCC is arguing that Republicans are disguising attack ads paid for by joint fundraising committees as fundraising ventures, therefore circumventing fundraising caps.  

The suit comes after Senate Democrats previously accused Republicans of using the tactic and appealed to the FEC to rule if such a strategy is allowed. The commission voted 3-3 along party lines last week, thus allowing the GOP to continue with its ads. 

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"Federal law is clear that party committee expenditures coordinated with candidates are subject to limits. Republican candidates are so cash strapped that they’re now brazenly exploiting a self-created loophole to spend party committee money on candidate ads, well in excess of applicable limits, at the lowest unit charge," Rachel L. Jacobs, general counsel for the DCCC, told Fox News Digital in a statement. 

The DCCC is arguing that Republicans are disguising attack ads paid for by joint fundraising committees as fundraising ventures, therefore circumventing fundraising caps. (Getty Images)

"Their actions require DCCC and Democratic House candidates to make a choice between engaging in conduct they think is illegal at the risk of getting penalized by the FEC and/or Department of Justice, or being at a competitive disadvantage to their Republican counterparts to the tune of tens of millions of dollars."

The DCCC is now asking the federal court to rule on whether the practice is illegal ahead of the Nov. 5 election.

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FEC Chairman Sean Cooksey told Axios, "I fully expect the FEC to prevail in this frivolous lawsuit. We will see the DCCC in court." 

The FEC declined to provide additional comment on ongoing litigation when asked for a statement by Fox News Digital. 

In a statement to Axios, National Republican Senatorial Committee General Counsel Ryan Dollar called the suit "a desperate stunt," saying the television ads were "approved unanimously in 2007 and reaffirmed last week."

The DCCC is now asking the federal court to rule on whether the practice is illegal ahead of the Nov. 5 election. (Getty Images)

"I'd be curious to hear what Harris Victory has to say about this ridiculous lawsuit, given that they have engaged in these ads themselves," Dollar told the outlet. 

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With just a few weeks out from Election Day, Republicans are fighting to maintain control of the House and take over the Senate. The Congressional Leadership Fund (CLF), the leading outside group supporting House Republicans and closely aligned with House Speaker Mike Johnson, reported its highest fundraising quarter ever earlier this month, announcing an $81.4 million haul during the July-September third quarter of 2024 fundraising.  

The Congressional Leadership Fund, the leading outside group supporting House Republicans and closely aligned with House Speaker Mike Johnson, reported its highest fundraising quarter ever earlier this month, announcing an $81.4 million haul during the July-September third quarter of 2024 fundraising. (Tom Williams/CQ-Roll Call, Inc via Getty Images)

The CLF also announced at the time that it would be funneling another $11 million in new ad reservations, sharing the news first with Fox News Digital. 

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Likewise, the Senate Leadership Fund, the leading super PAC supporting Republican incumbents and candidates, announced it hauled in $114.5 million during the same fundraising quarter. 

Fox News' Paul Steinhauser contributed to this report.