ActBlue’s Lawyers Raised Concerns About Illegal Foreign Donations

ActBlue in Conflict Over Foreign Donation Concerns

ActBlue, a significant player in Democratic fundraising, is reportedly taking a strong stance against a law firm it dismissed last year for raising concerns about potential foreign donation concealment, as highlighted by The New York Times recently.

Covington & Burling issued two “alarming” memos in early 2025, indicating that ActBlue’s President and CEO, Regina Wallace-Jones, may have misled Republican Representative Brian Steil regarding the platform’s verification processes for ensuring donations originate from U.S. sources, as mandated by law. This situation prompted significant unrest within ActBlue, described by the Times as one of the Democratic Party’s critical financial entities.

One memo expressed concern that “aggressive prosecutors” could interpret a letter from November 2023 not just as a false claim but as an attempt to hide foreign contributions. It also identified substantial risk that some funds received by ActBlue might be “impermissible contributions from foreign persons.”

In her response to Steil, Wallace-Jones asserted that ActBlue’s fraud prevention measures are thorough, involving multiple steps to confirm donor identity. She stated that these systems are designed to detect potential foreign donations and safeguard against financial fraud.

However, Covington countered that some of the fraud protection measures described might not be consistently enforced by fundraising platforms. For instance, while Wallace-Jones noted that ActBlue asks for U.S. passport details from donors with non-U.S. addresses, Covington’s memo pointed out that this wasn’t always the case, particularly for donations made through platforms like PayPal and Venmo.

In a statement following the reports, an ActBlue spokesperson defended the integrity of Wallace-Jones’ letter, emphasizing that it had been rigorously vetted by legal counsel before being sent. They also highlighted that foreign contributions represent a small fraction of total donations to ActBlue, primarily from U.S. citizens living abroad.

Steil, whose inquiry into ActBlue is ongoing, expressed dissatisfaction with the platform’s fraud prevention measures. He, along with other Republican leaders, indicated that their investigation revealed the possibility of misleading statements made to Congress regarding the handling of foreign donations. They vowed to pursue the investigation diligently, considering all options for uncovering the truth.

Steil, along with Florida’s then-Senator Marco Rubio, previously raised alarms about ActBlue’s failure to request credit verification codes, a critical safeguard against fraudulent donations. Although ActBlue has since updated its interface to require CVV for credit card transactions, the ability to donate through platforms that allow gift cards without such verification remains unaddressed.

Additionally, the Safe Handling of Internet Electronic Donations (SHIELD) Act was implemented in September 2024, mandating CVV for online donations and banning prepaid gift cards. Despite passing in the House, it has not yet progressed through the Senate.

In February 2025, reports emerged of several resignations among ActBlue executives, further highlighting internal strife. ActBlue serves as a pivotal fundraising platform for Democratic candidates nationwide, regardless of their specific electoral ambitions.