Court To Review Ted Cruz Repayment Of Personnal Loans

In the Issue of, Federal Election Commission (FEC) v. Ted Cruz for Senate, the Justices are presented with a Jurisdictional Statement involving Restrictions on the Repayment of a Candidate’s “Personal Loans” made to Fund an Election Campaign.

Federal Law imposes Three relevant Restrictions on Campaign Funds:

- First: Candidates shall Not use Contributions made after the Election to Repay Personal Loans in Excess of $250,000.

- Second: Portions of a Personal Loan that Exceed $250,0000 may be Paid Back to the Candidate using Pre-Election Contributions, Only if Repayment is made within 20 days after the Election.

- Third: if a Loan in Excess of $250,000 remains Unpaid 20 days after the Election, any Portion over $250,000 must be Recharacterized as a Contribution rather than a Loan.

In 2018, Sen. Ted Cruz (R-TX), ran for Re-Election. One day before the General Election, Ted Cruz loaned $260,000 to his Committee.

After the 20-day Deadline following the Election Passed, $10,000 of the $260,000 Loan was Required to be Recharacterized as a Contribution.

Cruz was then Repaid the Statutory Maximum of $250,000.

This Series of Events was done with “the sole and exclusive motivation” to establish the Factual Basis to Challenge the Loan-Repayment Restrictions.

The District Court determined that the Senator had Standing to Sue based on the $10,000 “financial injury” he Suffered and held that the Loan-Repayment Limitation Violated the First Amendment.

The FEC Argues that such Contributions made After an Election, to Repay Personal Loans made by the Candidate, create a Heightened Risk of Corruption, and the Commission asks the Court to Remand for further Consideration of Standing or set the Case for Plenary Consideration to decide the Constitutional Question.

Issues:

(1) Whether Appellees have Standing to Challenge the Statutory Loan-Repayment Limit of 52 U.S.C. 30116(j).

(2) Whether the Loan-Repayment Limit Violates the Free Speech Clause of the First Amendment.










NYC Wins When Everyone Can Vote! Michael H. Drucker