Corporate donations hit $646M record as firms brace for House probes

U.S. companies poured a record $646 million into federal campaigns in the 18 months through June, up 40 percent from the entire 2024 cycle, as firms brace for potential Democratic-led investigations into their Trump ties.

"The rate at which corporate money is rushing into our elections should be a flashing warning sign," said Rick Claypool, research director at Public Citizen, the watchdog group that analyzed Federal Election Commission filings.

The surge spans industries from crypto to sports betting to tobacco. Crypto, online betting and AI firms together accounted for $344 million — more than half of all company donations. Koch Inc. gave $20 million in June to Americans for Prosperity Action, while Reynolds American donated $5 million to Trump's MAGA Inc. super PAC in late April. Six cannabis companies, including Curaleaf and Trulieve, contributed $11.5 million to America First Agriculture Action Inc. in June. Crypto entrepreneurs Cameron and Tyler Winklevoss made a $10 million donation to MAGA Inc. through Gemini Trust Co. on June 19.

The stakes are rising as Democrats hold an 84 percent probability of winning the House, according to Nate Silver's midterm forecast, and a 57.2 percent chance of taking the Senate. House Minority Leader Hakeem Jeffries, in line to become speaker, has pledged to hold companies accountable, and firms with close Trump ties are already preparing internal task forces and hiring Democratic operatives.

Meta, Palantir Prep for Subpoenas

Meta Platforms has given at least $30 million this year to political nonprofits across both parties, including $5 million each to House Majority Forward and Majority Forward, the Democratic-aligned groups, and $5 million each to American Action Network and One Nation on the Republican side, according to people familiar with the matter. The company also donated $10 million to a Trump-aligned committee in the spring.

Meta and Palantir are among companies whose executives have discussed the likelihood of facing requests for information, congressional hearings and even subpoenas, people involved in the discussions told the Wall Street Journal. Amazon, Chevron, Pfizer and UnitedHealth executives attended a U.S. Chamber of Commerce summer seminar on "managing potential congressional oversight and investigations." The law firm Cahill held a June seminar with House Oversight Committee Chairman James Comer on how companies should respond to congressional subpoenas.

Hedging Both Sides of the Aisle

Companies are also hiring Democratic operatives to build relationships. Paramount hired Shuwanza Goff, former legislative director to President Joe Biden, as vice president of U.S. government affairs. Kalshi, the prediction market operator that counts Donald Trump Jr. as a strategic adviser, hired former Obama aide Stephanie Cutter and former Biden aide John Bivona. OpenAI organized summer dinners in Washington that included Democratic lawmakers and CEO Sam Altman, according to a person familiar with the event.

"Get right with God," said Cooper Teboe, a Silicon Valley donor adviser and Democratic strategist, describing his advice to companies that have publicly aligned with Trump. "You're going to be totally f—ed next year or you're going to figure it out this year and you're going to make amends."

The corporate totals exclude dark money groups that don't disclose donors, and they leave out direct spending by executives. Elon Musk has already spent more than $90 million on federal elections and plans to spend over $100 million more to help Republicans keep control of Congress. Google co-founder Sergey Brin has spent $106 million-plus in California fighting a proposed wealth tax. Anthropic has donated $40 million to Public First Action, a nonprofit that has raised $100 million to spend on the midterms.

Sports betting companies DraftKings, FanDuel, Fanatics and bet365 gave $29 million in the second quarter to the industry's super PAC Win for America, bringing the sector's total contributions to $76 million so far. Prediction market Polymarket entered federal elections for the first time with a $1 million donation to CLF PAC in June. The super PAC aligned with ChatGPT developer OpenAI, Leading the Future, reported receiving $50 million so far, bringing the AI sector's campaign donations to $62 million, Public Citizen said.

Corporate spending has ramped up quickly since the Supreme Court lifted donation and spending restrictions in 2010, allowing companies and wealthy individuals to give unlimited sums to independent political groups. Of the $1.7 billion companies have donated to U.S. elections since then, about a third has come in this election cycle alone.

This article is for informational purposes only and does not constitute investment advice.