Your web browser is not supported You're using Internet Explorer, some features might not work. Please switch to another browser like Chrome, Firefox, or Edge for a better experience.


An official website of the United States government Here's how you know
 **Official websites use .gov**
            
            A **.gov** website belongs to an official government organization in the United States.
 **Secure .gov websites use HTTPS**
            
            A **lock** ( A locked padlock ) or **https://** means you've safely connected to the .gov website. Share sensitive information only on official, secure websites.


Federal Election Commission | United States of America Calendar
           Glossary
          Search
              Search


Menu
      Home
      Campaign finance data
        All data
            Raising
            Spending
            Loans and debts
            Filings and reports
            Candidates
            Committees
            Bulk data
            Campaign finance statistics
        Find elections. Search by state or ZIP code
          Look up contributions from specific individuals
      Help for candidates and committees
        All compliance resources
            Guides
            Forms
            Dates and deadlines
            Trainings
        Learn about electronic filing
          Find and contact your committee's analyst
      Legal resources
        All legal resources
            Advisory opinions
            Enforcement
            Statutes
            Legislation
            Regulations
            Court cases
            Policy and other guidance
        Search across legal resources
          Search guidance documents
      About
        All about the FEC
            News and announcements
            Commission meetings
            Mission and history
            Leadership and structure
            Reports about the FEC
            Careers
            Working with the FEC
            Contact
        Introduction to campaign finance and elections


- Home
- ›
      FEC Record: Advisory opinions
- ›
      AO 2005-11: Use of campaign funds to pay for legal expenses

FEC Record: Advisory opinionsAO 2005-11: Use of campaign funds to pay for legal expensesNovember 1, 2005 Representative Randall "Duke" Cunningham may use campaign funds for expenses incurred in connection with a grand jury investigation related to his campaign activities and his duties as a federal officeholder. Background Representative Cunningham is the U.S. Representative from the 50th Congressional District of California and is a member of the Permanent Select Committee on Intelligence and the House Appropriations Defense Subcommittee. The U.S. Attorney for the Southern District of California convened a grand jury to investigate Representative Cunningham's conduct in office and his campaign fundraising activities. The investigation appears to be based upon two principal allegations: In November 2003, Mitchell Wade, founder and president of federal defense contractor MZM, Inc., purchased a house owned by Representative Cunningham allegedly at a price that was above market value, allegedly in order to support MZM's efforts to secure defense contracts; andMr. Wade allegedly allowed Representative Cunningham to live rent-free on his yacht for 13 months. Representative Cunningham and his campaign committee intend to use campaign funds to pay for: Legal fees and expenses incurred in connection with the grand jury investigation and legal proceedings arising from the investigation; andLegal fees and expenses involved in responding to the press regarding the matter. Legal Analysis The Act and Commission regulations generally prohibit the conversion of campaign funds to "personal use," which occurs when funds are used for expenses that would exist "irrespective" of the candidate's campaign or duties as a federal officeholder. 11 CFR 113.1(g). Permissible uses of campaign funds include: Expenditures in connection with a candidate's campaign for federal office; andOrdinary and necessary expenses incurred in connection with a federal officeholder's duties. The question of whether the payment of legal fees constitutes personal use is dealt with on a case-by-case basis. In previous advisory opinions, the Commission has concluded that legal fees and expenses incurred in legal proceedings involving allegations that relate to a candidate's campaign activities or duties as a federal officeholder pass the "irrespective" test and therefore may be paid with campaign funds. (See AOs 2003-17, 1998-1, 1997-12, 1996-24 and 1995-23). Based on the representations in the request, the Commission concluded that legal fees and expenses associated with the grand jury investigation would not exist irrespective of Representative Cunningham's campaign activities and federal officeholder duties. Accordingly, the Commission determined that he may use campaign funds to pay for the legal fees and expenses incurred in connection with the investigation and any legal proceedings stemming from the investigation. If at some point the grand jury investigation involves allegations not related to Representative Cunningham's campaign activities or officeholder duties, the use of campaign funds to pay for those legal expenses would constitute impermissible "personal use" of campaign funds. Similarly, Representative Cunningham may use campaign funds to pay for legal fees and expenses incurred in responding to the press regarding allegations that relate to his campaign activities or officeholder duties because such fees and expenses would not exist irrespective of those activities and duties. (See AOs 1998-1 and 1997-12). However, in keeping with previous advisory opinions, the Commission cautioned that if the grand jury investigation involves allegations that are not related to Representative Cunningham's candidate or officeholder activities, then campaign funds can cover 100% of legal fees and expenses incurred in preparing press releases, press conferences or talking with reporters, and cover 50% of other press-related legal expenses. The campaign must maintain appropriate documentation of any disbursements made for legal fees in connection with the investigation, legal proceedings or press responses, and the committee must disclose these disbursements as "operating expenditures" on its regular reports filed with the FEC. AO 2005-11; Date issued: September 26, 2005; Length: 5 pages
 Author
          Gary Mullen


Read next: AO 2005-12: Fundraising and spending by a federal candidate/officeholder for his nonfederal exploratory committee
 Related: Explore campaign finance data »


This information is not intended to replace the law or to change its meaning, nor does this information create or confer any rights for or on any person or bind the Federal Election Commission or the public. The reader is encouraged also to consult the Federal Election Campaign Act of 1971, as amended (52 U.S.C. 30101 et seq.), Commission regulations (Title 11 of the Code of Federal Regulations), Commission advisory opinions and applicable court decisions.


About
          Careers
          Press
          Contact
   Privacy and security policy
          Plain language
          Accessibility statement
          Strategy, budget and performance
 No FEAR Act
          Open government
          Protected Voices
          USA.gov
          Inspector General
 FOIA
          OpenFEC API
          GitHub repository
          Release notes
          FEC.gov status


Federal Election Commission
 The FEC's Twitter page
            The FEC's YouTube page Sign up for FECMail
 This information is produced and disseminated at U.S. taxpayer expense.


Hide glossary Glossary Search terms