Feds ask Ted Cruz's campaign to explain dozens of illegal donations it received

The Federal Election Commission wants U.S. Sen. Ted Cruz, R-Texas, to explain or return tens of thousands of dollars in recent campaign contributions that appear to violate federal legal limits.

Although individuals are prohibited under federal law from giving more than $3,300 to a candidate's election committee, an Aug. 7 letter from the FEC raises concerns that 45 Cruz campaign donors blew past that limit during the second quarter — some by thousands of dollars. The letter includes a 17-page list of donations that regulators called into question.

The inquiry comes as Cruz faces scrutiny over a controversial deal to distribute his podcast which has so far pumped $786,000 in corporate dollars into a super PAC focused on his reelection. Watchdog groups have filed at least two complaints with the FEC arguing the senator's syndication deal with San Antonio-based media group iHeartMedia breaks federal campaign finance laws.

The FEC's Aug. 7 letter to Cruz's campaign committee also asks for it to account for contributions from two groups, the Erath County Republican Party and the Republican Women of Kimble County, which it described as "possible unregistered organizations."

The letter gives the campaign until Sept. 11 of this year to either refund all the donations included in its list or offer a detailed explanation for them.

"Failure to adequately respond by the response date noted above could result in an audit or enforcement action," according to the document.  

Cruz's campaign office didn't respond to the Current's request for comment.

It's not unusual for the FEC to contact campaigns asking them to return or explain donations that exceed the federal limit, but the 17-page list sent to Cruz's reelection committee is unusually large, according to campaign finance experts.

The inquiry also comes as the FEC weighs whether to investigate Cruz's deal with iHeartMedia. In their complaints to the agency, watchdog groups Campaign Legal Center and End Citizens United argue that the syndication arrangement appears to be structured to skirt legal limits on corporate donations in politics.

Officials with Cruz's campaign have defended the deal as legal, saying the senator records his podcast, The Verdict With Ted Cruz, for free. For its part, iHeartMedia said the money it funnels into the Cruz-linked Truth and Courage super PAC is derived from ad revenue related to the show.

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