Obama Administration Considering Executive Order DISCLOSE-Like Rule for Federal Contractors

The White House is reportedly considering issuing an Executive Order that would require federal contractors to disclose their campaign contributions. The draft EO, just obtained by AGC, would amend the Federal Acquisition Regulation (FAR) to require federal contractors to disclose contributions to federal candidates or political parties or to third party entities that may make independent expenditures in the course of a political campaign. It would apply to contributions exceeding an aggregate of $5,000. It would also require the FAR Council to create a publicly searchable database of such contributions. The requirement is similar to the DISCLOSE Act legislation that was defeated in the Democrat-controlled 111th Congress that would have banned contractors from donating to federal candidates or parties. AGC is concerned about the chilling effect this may have on political participation by government contractors. The provision does not apply across the board evenly to grant recipients or unions who are negotiating contracts with the federal government. Provisions that single out just some entities for unique restrictions or reporting requirements have a history of violating First-Amendment protections. AGC is examining the potential effects of the Executive order. For more information, contact Marco Giamberardino at (703) 837-5325 or giamberm@agc.org.