Commission approves revised regulations providing for candidate salaries (REG 2021-01)
On December 14, 2023, the Commission approved a final rule and explanation and justification revising its regulations at 11 CFR part 113 concerning the use of campaign funds by a candidate’s principal campaign committee to pay compensation to the candidate. These revisions change:
- The criteria for determining a candidate’s eligibility to receive compensation from campaign funds;
- The maximum amount of compensation a candidate may receive from campaign funds; and
- The period during which a candidate may receive compensation.
The new regulations reorganize the Commission’s current regulations at 11 CFR 113.1(g)(1) through (8) addressing personal use and add new paragraph (g)(6) to address candidate compensation. Current paragraphs (g)(6) through (8) are now designated (g)(7) through (9). New paragraph (g)(6) has seven subparagraphs:
- New subparagraph (g)(6)(i) provides that no incumbent federal officeholder may receive compensation from campaign funds.
- New subparagraph (g)(6)(ii) states that the use of campaign funds to pay compensation to a candidate is not personal use provided that the compensation does not exceed the lesser of either 50 percent of the minimum salary paid to a Member of the United States House of Representatives, or the average annual income that the candidate earned during the most recent five calendar years in which the candidate earned income prior to candidacy. Compensation will be calculated at a daily rate, rounded to the nearest dollar.
- New subparagraph (g)(6)(iii) defines “compensation” as direct payments to the candidate that are not otherwise permitted by law, such as the repayment of candidate loans and expenses.
- New subparagraph (g)(6)(iv) states that the campaign committee must reduce the maximum amount of compensation permissible under the new regulations by the amount of any earned income the candidate receives after filing a Statement of Candidacy.
- New subparagraph (g)(6)(v) defines the period of eligibility for the accrual of compensation as beginning on the date on which the candidate files a Statement of Candidacy and ending up to 20 days following the date on which the candidate wins a general election, special election, runoff election, or when the candidate otherwise ceases to be a candidate, such as by losing an election or withdrawing from the race.
- New subparagraph (g)(6)(vi) states that a principal campaign committee seeking to settle debts for less than the full value may not pay compensation to the candidate or settle or satisfy a debt to a candidate for compensation.
- New subparagraph (g)(6)(vii) states that a candidate must provide evidence of earned income from relevant years upon request from the Commission, and that any such evidence must be retained for three years after the report disclosing the disbursement is filed.
Before promulgating rules or regulations, the Commission must transmit them to the Speaker of the House of Representatives and the President of the Senate for a thirty-day legislative review period. The effective date of this final rule will be March 1, 2024.