Senate targets foreign-donor loophole

Sign up for our daily briefingMake your busy days simpler with Axios AM/PM. Catch up on what’s new and why it matters in just 5 minutes.Catch up on the day’s biggest business storiesSubscribe to Axios Closer for insights into the day’s business news and trends and why they matterSign up for Axios Pro RataDive into the world of dealmakers across VC, PE and M&A with Axios Pro Rata. Delivered daily to your inbox by Dan Primack and Kia Kokalitcheva.Sports news worthy of your timeBinge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.Tech news worthy of your timeGet our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.Get the inside storiesGet an insider’s guide to the new White House with Axios Sneak Peek. Sign up for free.Catch up on coronavirus stories and special reports, curated by Mike Allen everydayCatch up on coronavirus stories and special reports, curated by Mike Allen everydayWant a daily digest of the top Denver news?Get a daily digest of the most important stories affecting your hometown with Axios DenverWant a daily digest of the top Des Moines news?Get a daily digest of the most important stories affecting your hometown with Axios Des MoinesWant a daily digest of the top Twin Cities news?Get a daily digest of the most important stories affecting your hometown with Axios Twin CitiesWant a daily digest of the top Tampa Bay news?Get a daily digest of the most important stories affecting your hometown with Axios Tampa BayWant a daily digest of the top Charlotte news?Get a daily digest of the most important stories affecting your hometown with Axios CharlotteWant a daily digest of the top Nashville news?Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.Want a daily digest of the top Columbus news?Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.Want a daily digest of the top Dallas news?Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.Want a daily digest of the top Austin news?Get a daily digest of the most important stories affecting your hometown with the Axios Austin newsletter.Want a daily digest of the top Atlanta news?Get a daily digest of the most important stories affecting your hometown with the Axios Atlanta newsletter.Want a daily digest of the top Philadelphia news?Get a daily digest of the most important stories affecting your hometown with the Axios Philadelphia newsletter.Want a daily digest of the top Chicago news?Get a daily digest of the most important stories affecting your hometown with the Axios Chicago newsletter.Sign up for Axios NW ArkansasStay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reportersWant a daily digest of the top DC news?Get a daily digest of the most important stories affecting your hometown with the Axios DC newsletter.Photo: Samuel Corum/Getty ImagesSen. Kirsten Gillibrand (D-N.Y.) is introducing legislation barring foreign nationals from financing U.S. referendum campaigns, after Axios revealed federal regulators recently okayed the practice.Why it matters: Gillibrand’s bill would close what good government advocates call a glaring loophole in federal election laws allowing foreign nationals to bankroll efforts to reshape state and local laws.Sen. Marco Rubio (R-Fla.) also said Wednesday he plans to introduce legislation to close the loophole.What’s happening: Gillibrand’s bill, the Stop Foreign Interference in Ballot Measures Act, would amend the prohibition on foreign national donations to U.S. political campaigns to include state and local ballot initiatives.The law as currently written has been interpreted to exclude such contests from the definition of “elections.”As a result, the Federal Election Commission ruled over the summer that bans on foreign national donations to U.S. political campaigns do not apply to ballot committees.What they’re saying: “It is absolutely chilling that foreign nationals can fund ballot initiatives, giving them significant influence on our laws and democracy. This loophole is frankly dangerous and must be closed swiftly,” Gillibrand said in a statement.“Foreign nationals should not be able to engage in America’s democratic process,” Rubio said in a statement on his upcoming bill. “We must do everything we can to protect the votes of American citizens.”