Watchdog groups say Texas Sen. Ted Cruz 'brazenly violated' Federal Election Campaign Act

Two campaign finance watchdog groups on Tuesday formally asked the Federal Election Commission to investigate U.S. Sen. Ted Cruz, R-Texas, over possible violations connected to more than $630,000 in corporate contributions from iHeartMedia to Cruz's 2024 reelection campaign.

In their complaint, the Campaign Legal Center and End Citizens United, allege that Cruz violated the Federal Election Campaign Act after iHeartMedia, a San Antonio-based audio media company that publishes the senator's podcast, made deposits to a super political action committee connected to Cruz's reelection campaign, which then reported the payments as "digital revenue" or "digital income" as opposed to campaign contributions.

"This type of funding risks putting the priorities of wealthy special interests above everyone else and makes our political process more vulnerable to corruption," Erin Chlopak, Campaign Legal Center’s senior director of campaign finance, said in a statement after filing the investigation request.

In 2022, iHeartMedia entered into a syndication agreement with Cruz to be the host platform for the Texas junior senator's "Verdict with Ted Cruz" podcast.

Previously, the media titan has said the funds in question are "associated with ad sales" from Cruz's podcast and directed questions over the finance reporting to the Truth and Courage PAC, an arm of Cruz's reelection campaign.

Ethics complaints have arisen from the 2022 deal's announcement, and, in Tuesday's request to the Federal Election Commission, the two groups echoed those concerns, pointing to the arrangement and payments as possible violations of federal law.

"The most reasonable and logical inference to be drawn from these circumstances, however, is that Cruz requested or directed, and iHeartMedia agreed, that iHeartMedia would transmit these funds to TCP, which then would use the funds to support Cruz’s candidacy," the complaint filed Tuesday reads.

Citing five receipts dating back to 2023 that the watchdog groups allege have been incorrectly filed — the largest of which, nearly $215,000, was reported in February — they say the relationship and campaign finance reporting by the Truth and Courage PAC violate campaign finance law and should be seen as "soft money," or contributions received, transferred, solicited or spent outside of the parameters of federal campaign finance law.

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"By soliciting or directing $630,850.09 of iHeartMedia’s corporate funds to or on behalf of TCP in connection with his 2024 election, Cruz appears to have brazenly violated these federal campaign finance laws," the complaint reads. "Which are crucial to preventing real and apparent corruption in our federal elections, as well as promoting voters’ right to having a meaningful electoral voice through the democratic process."

Campaign Legal Center and End Citizens United are seeking the FEC to issue "appropriate sanctions for any and all violations," which could include "civil penalties sufficient to deter future violations, injunctive relief to remedy these violations and prohibit any and all future violations, and such additional remedies as are necessary and appropriate to ensure compliance with" the Federal Election Campaign Act.

Cruz's office and iHeartMedia representatives did not respond to the American-Statesman's requests for comment Tuesday. A representative for the Truth and Courage PAC could not be reached.

Cruz has previously brushed off concerns stemming from the podcast deal, equating them at the time of its announcement in late 2022 to be attempts by the "corrupt corporate media" to denigrate his platform to directly address the American people.

"This thing, for the podcast, is just a big damn deal. iHeartRadio is a monster," Cruz said during an episode of the "Verdict," in announcing the move in October 2022. "This was not something we were out looking for, but they came and they saw what was happening on this podcast, the work and incredible viewers and fans."

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After the deal was announced, with its specifics still not made public, the Campaign Legal Center filed a complaint with the U.S. Senate Select Committee on Ethics, making many of the same allegations over the financial concerns and pointing to Cruz's position as a ranking member of the Senate Committee on Commerce, Science and Transportation as a possible conflict of interest as legislation iHeartMedia has previously lobbied for has come before that committee.

After the legal center's initial 2022 letter to the leaders of the Senate Ethics Committee — Sen. Chris Coons, D-Del., its chairman, and Sen. James Lankford, R-Okla. the group's vice chair — the panel looked into the matter and said in 2023 that Cruz had not acted improperly and "did not violate federal law, Senate rules or standards of conduct.”

"Sen. Cruz receives no financial benefit from 'Verdict.' There is no difference between Sen. Cruz appearing on a network television show, a cable news show, or a podcast airing on iHeartMedia," a Cruz spokesperson said at the time of the original complaint.

This article originally appeared on Austin American-Statesman: Watchdog groups say $630K given by iHeartMedia to PAC, Cruz is illegal