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Contractor Political Contributions: Executive Order May Require Disclosure


Noting that President Obama “is committed to improving our federal contracting system, making it more transparent and more accountable,” White House press secretary Jay Carney said on April 20 that the President is drafting an executive order requiring companies seeking government contracts to disclose political campaign contributions. The order, according to Carney, will not go as far as the defeated DISCLOSE Act, which would have banned political spending by government contractors. Disclosure, however, is likely to be the rule in the near future. As the 2012 campaign season heats up, contractors who do business with the United States should proceed as if all political contributions will be fully disclosed.

If you have questions about this development or about your company’s policies and procedures, please contact the author of this alert or any of the members of Baker Donelson’s Construction Group.

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