House Rule 23, clause 6(b)
“[a] Member . . . may not convert campaign funds to personal use in excess of an amount representing reimbursement for legitimate and verifiable campaign expenditures; and . . . may not expend funds from [the Member’s] campaign account . . . that are not attributable to bona fide campaign or political purposes.”
On December 30, 2024, at the end of the last Congress, the House Committee on Ethics issued guidance to Members of Congress and their staff regarding the personal use of campaign funds, as prohibited by House Rule 23, clause 6(b). This guidance reiterates the Committee’s longstanding advice on compliance with the rule, which is broader than the federal law prohibiting personal use of campaign funds. It also includes new guidance on how to ensure that campaign expenditures comply with the Rule’s requirement that they be “legitimate and verifiable,” with a focus on recordkeeping requirements.
The full memo from the Committee, which is available here, contains examples of permissible and impermissible campaign expenditures, as well as what records should be kept by campaigns in order to comply with House Rules.
Please consult with counsel if you have any questions regarding the permissibility of a specific campaign expense, or about your compliance with the requirements to verify the legitimacy of campaign disbursements. Additionally, the guidance notes heightened requirements for payments by a Member’s campaign to the Member or their family. Those are not summarized herein, but please reach out to counsel for a summary of those additional requirements.
Background: Prohibition on Personal Use of Campaign Funds
Both federal law and House Rules prohibit the personal use of campaign funds. House Ethics reiterated that under House Rule 23, campaign funds include a Member’s principal campaign committee funds, leadership PAC funds, campaign funds for elections to state and local office, and campaign funds for any other political committee that is affiliated with the Member. House Rule 23 requires that all campaign expenditures be: (a) legitimate and (b) verifiable campaign expenses.
Legitimate campaign expenditures are those that serve a bona fide campaign or political purpose. In its new guidance, the Committee restated previous guidance that “[c]ampaign funds may not be used to enhance an individual’s lifestyle, for personal enjoyment or entertainment, or to pay an individual’s personal obligations.” Further, the guidance emphasizes that the verification requirement in House Rule 23 is “separate from and in addition to FEC recordkeeping requirements.” As discussed in more detail below, compliance with this verification requirement means that Members’ campaigns must maintain records that document the primary purpose* of every campaign expense.
The new guidance makes clear that Members themselves are responsible for their campaign’s compliance regarding personal use of campaign funds. Thus, it is important that Members work with their compliance firms to ensure that their records verify the legitimacy of each expense.
New Guidance for Complying with the House Rule 23 Personal Use Prohibition
Members’ campaigns must ensure that every campaign expense serves a campaign or political purpose and must maintain records to verify that primary purpose. Notably, the Committee says that relevant records must be maintained for at least three Congresses. This timeframe is beyond the 36-month recordkeeping requirement imposed by the Federal Election Commission and the five-year statute of limitations imposed under federal campaign finance law.
What is a Legitimate Campaign Expense?
In its guidance, the Committee reiterated that House Rule 23 requires that each campaign disbursement be for a legitimate “bona fide campaign or political purpose.” There must be a “reasonable connection” between a specific expense and its primary purpose. Primary purpose can be determined in a number of ways, including by evaluating: (i) the amount of time devoted to the expenditure’s purpose, (ii) the main reason for making the expenditure, or (iii) whether the Member would be making the expenditure if not for the campaign or political purpose. The Committee’s guidance emphasizes that “[i]t is not enough that a Member can articulate a campaign benefit for an expense; what matters is the primary purpose of the disbursement.”
The guidance provides examples of how to determine whether an expense is a legitimate campaign expense. For example, if a Member plans a family ski trip and decides to meet with potential donors while on the trip, the trip is not converted from a personal trip to a campaign trip simply by virtue of the meeting with donors. Personal funds would still need to be used to pay for the trip because the Member would still be taking the trip and incurring the cost regardless of whether the Member met with donors during the trip. Campaign funds may be used to pay for a meal with potential donors if the expense is legitimate and verifiable.
For questions about the legitimacy of a specific expense, please consult with counsel.
Is the Campaign Expense Verifiable?
Through its new guidance, the Committee also provided more insight into how to verify the legitimacy of a campaign expense. As mentioned above, the Committee now advises that Members keep records associated with expenses for at least three Congresses (i.e., six years). Each Member should work with their team to ensure compliance with this requirement.
The Committee provides examples of information to retain to verify the primary purpose of each expenditure.
- The date, time, and location of each event, activity, or purchase;
- The specific campaign, political, or official purpose of the expenditure;
- The specific politically or officially related activities in which the Member or other participant engaged, including a description of the event or topics of discussion;
- The names of all people present at any meal or activity paid with campaign funds; and/or
- Destinations and purposes for any travel expenditures, including mileage and gas.
The Committee identified a non-exhaustive list of documents that may already exist and that may help Members comply with the verification requirement. Those include:
- Accurate and detailed calendars on both the campaign and official side that contain relevant information;
- Briefing memos prepared for campaign and official events; and
- Vehicle mileage logs as required by the FEC.
Additionally, the Committee recommends that Members keep receipts, document the relevant participants, and note the specific campaign or political purpose for each expenditure (e.g., by making a record of the topics of a discussion).
We recommend consulting counsel if you have questions about which documents to retain to comply with the verification requirement.
* Per the Committee, the “primary purpose” is the main reason for the expenditure; the expenditure would not happen but for the primary purpose.
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