{"id":9517,"date":"2026-08-13T09:05:02","date_gmt":"2026-08-13T09:05:02","guid":{"rendered":"https:\/\/relocationtimess.com\/?p=9517"},"modified":"2026-08-13T09:05:02","modified_gmt":"2026-08-13T09:05:02","slug":"inside-the-drama-at-actblue-and-why-some-democrats-are-quietly-afraid-it-could-cost-them-in-the-midterms","status":"publish","type":"post","link":"https:\/\/relocationtimess.com\/?p=9517","title":{"rendered":"Inside the drama at ActBlue \u2013 and why some Democrats are quietly afraid it could cost them in the midterms"},"content":{"rendered":"
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\n On a Saturday morning last year, several of ActBlue\u2019s lawyers and executives gathered on a video call to discuss a sensitive matter with the fundraising platform\u2019s president and CEO.\n <\/p>

Read more This \u2018perfect invader\u2019 is spreading across the world. It\u2019s costing economies billions<\/a><\/p>\n

\n A review by an outside law firm had raised questions about whether the organization had always taken the steps to stop illegal foreign contributions that Regina Wallace-Jones had told Congress it had.\n <\/p>\n

\n Wallace-Jones was urged to alert ActBlue\u2019s board of directors about a potential legal vulnerability. But according to people with familiar with the discussion, Wallace-Jones flatly rejected the idea.\n <\/p>\n

\n \u201cI refuse to let you go to the board with this information,\u201d she said, according to one person.\n <\/p>\n

\n The confrontation led to the rapid departure of several key ActBlue employees and a chain of events that reverberates through Democratic campaigns more than a year later. It has given new life to probes by Republicans on Capitol Hill, who have sought to cast ActBlue as a conduit for foreign money.\n <\/p>\n

\n Among national Democrats worried about countering a deluge of Republican-aligned spending in the midterms, there are quiet concerns about the future of ActBlue and the management style of its leader.\n <\/p>\n

\n Anyone who has made an online donation to a Democratic candidate in recent years likely did so through ActBlue. In a midterm election cycle where national GOP-aligned groups are equipped to outspend their Democratic counterparts, any disruption to ActBlue would affect thousands of the party\u2019s campaigns that rely on small-dollar donations to keep up.\n <\/p>\n

\n \u201cFor people who work in the Democratic ecosystem, it\u2019s been a wake-up call to us that we have a vendor that is too big to fail, in effect,\u201d said one Democratic strategist who is encouraging campaigns to use more fundraising platforms. \u201cAnd we\u2019ve had to reckon with that.\u201d\n <\/p>\n

\n ActBlue defended Wallace-Jones, who declined to be interviewed, and rejected the characterization of how she handled the meeting with lawyers. The organization\u2019s spokeswoman, De\u2019Andra Roberts LaBoo, said in a statement that the CEO has kept the board abreast of \u201call material updates\u201d throughout her tenure.\n <\/p>\n

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\nRegina Wallace-Jones, CEO of ActBlue, prepares to testify during the House Administration Committee hearing on June 10. Wallace-Jones invoked her Fifth Amendment privilege.<\/span>\n<\/div>\n
Tom Williams\/CQ-Roll Call, Inc.\/Getty Images<\/figcaption>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

\n \u201cI was recruited in 2023 to grow our mission-driven, technology-focused organization to support more candidates, causes and small-dollar donors,\u201d Wallace-Jones said in a statement provided by ActBlue. \u201cWe have been able to steer the organization from a single-service startup into a diversified technology platform supporting campaign operations well beyond fundraising. Change on this scale isn\u2019t easy, but neither is protecting the integrity of small-dollar democracy.\u201d\n <\/p>\n

\n President Donald Trump last year ordered the Justice Department to investigate whether ActBlue allowed illegal straw donations and foreign contributions to infiltrate US elections. Last October, federal prosecutors in two separate US attorney\u2019s offices made initial inquiries about ActBlue\u2019s operations, according to a person familiar with the matter. Three separate GOP-led congressional committees have been probing the organization for years but have not publicly made good on threats to escalate the matter.\n <\/p>\n

\n \u201cThere\u2019s a lot of smoke coming out of that building. I think we need to find out if there\u2019s a fire,\u201d GOP Rep. Tom McClintock of California, who serves on one of the committees investigating ActBlue, told CNN.\n <\/p>\n

\n Former ActBlue employees and people inside the Democratic ecosystem in Washington also say Wallace-Jones\u2019 actions and management style have created momentum for Republicans. The three-year effort on Capitol Hill to investigate ActBlue appeared to be winding down until news of Wallace-Jones\u2019 potential mismanagement first broke in The New York Times.\n <\/p>\n

\n Wallace-Jones\u2019 reaction on last year\u2019s call was emblematic of her management style, according to critics who have worked inside ActBlue and spoke to CNN on condition of anonymity. They described a work atmosphere in which some employees were mocked or had their views dismissed out of hand by the CEO, who sometimes referred to herself in the third person in meetings.\n <\/p>\n

\n \u201cShe would say things like, \u2018Stop being so lawyerly. This is going to be OK,\u2019\u201d said one former employee, who was granted anonymity to candidly discuss the inner workings of the organization.\n <\/p>\n

\n Neither ActBlue nor any of its current or former employees have been charged with wrongdoing. And Democrats have roundly denounced the GOP-led probes as politically motivated attacks. Democratic lawmakers and strategists argue that investigations are instead aimed at destabilizing their party ahead of the midterms, now less than three months away.\n <\/p>\n

\n \u201cA lot of people just want to Monday morning quarterback,\u201d said Democratic strategist Mike Nellis, who runs the digital fundraising and advertising firm Authentic. \u201cRepublicans would have made hay out of anything. It doesn\u2019t matter what Regina said or did or anything else. This is all politically motivated.\u201d\n <\/p>\n

\n Why ActBlue matters\n<\/h2>\n

\n ActBlue is the small-dollar fundraising engine for the Democratic Party, with more than 20,000 campaigns and organizations using it to process online contributions. It is sustained through the fees it charges on transactions and \u201ctips,\u201d voluntary payments that contributors add on to help fund the platform\u2019s operating expenses. More than $19 billion has been processed through the platform since 2004, according to its website.\n <\/p>\n

\n ActBlue\u2019s express-giving feature is a signature strength. Over the years, donors have stored their credit card information with the platform, allowing them to easily contribute to any affiliated campaign or organization with just one click.\n <\/p>\n

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\nCampaign buttons for Abdul El-Sayed, US Democratic Senate candidate from Michigan, during the “The People v. The Powerful” campaign event at the Detroit Opera House in Detroit, Michigan, US, on July 18.<\/span>\n<\/div>\n
Nic Antaya\/Bloomberg\/Getty Images<\/figcaption>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

\n Federal law makes it illegal for foreign nationals to contribute to US candidates with the goal of preventing foreign influence in American elections. US citizens living abroad, however, are free to contribute to politicians back in the United States.\n <\/p>\n

\n Starting in 2023, Republicans on Capitol Hill, citing reporting by Fox News and others, how ActBlue vetted the contributions it sends to Democrats to guard against fraud.\n <\/p>\n

\n \u201cWe have to be above reproach because they will come up with reasons to investigate Democrats,\u201d said one Democratic strategist working in Senate campaigns. \u201cAnd any fodder that you give them, while it may be unfair that they take this route, it\u2019s still fodder.\u201d\n <\/p>\n

\n The warning from ActBlue\u2019s outside law firm\n<\/h2>\n

\n For some staffers who had grown frustrated with Wallace-Jones\u2019 leadership, the February 2025 confrontation on the video call proved a breaking point. Several departed within days of the meeting.\n <\/p>\n

\n The dispute revolved around memos from ActBlue\u2019s then-outside law firm, Covington & Burling, warning that some elements of a 2023 letter that Wallace-Jones had sent to Congress describing how the platform vetted contributions from foreign addresses may not have been accurate.\n <\/p>\n

\n Wallace-Jones said in the letter that ActBlue sought US passport numbers on its contribution form for donations from foreign addresses. That was in effect for contributions made with credit cards, but it wasn\u2019t necessarily the practice followed when the contribution came through a third-party platform, such as PayPal or Venmo, Covington indicated in a February 18, 2025, memo viewed by CNN.\n <\/p>\n

\n Additionally, Covington warned that ActBlue did not follow the level of review for contributions from foreign addresses as described by the Federal Election Commission, the agency that is charged with policing campaign contributions in presidential and congressional elections.\n <\/p>\n

\n \u201cThis creates a substantial risk that some of the funds received were impermissible contributions from foreign nationals,\u201d the lawyers concluded.\n <\/p>\n

\n The meeting occurred four days after Covington\u2019s memos landed and was described by people familiar as an effort to prod Wallace-Jones to act on the issues raised by the firm.\n <\/p>\n

\n Two days after the Saturday meeting, Aaron Ting, then the most senior in-house lawyer at ActBlue, resigned.\n <\/p>\n

\n \u201cI am concerned that leadership is not fully committed to transparently addressing with the Board the seriousness of our most pressing concerns: the legal compliance of ActBlue\u2019s past practices for screening political donations from abroad and its past representations to Congress regarding foreign donations and related matters,\u201d he said in his resignation letter, which was reviewed by CNN.\n <\/p>\n

\n Officials at Covington & Burling did not respond to CNN\u2019s inquiries. The firm no longer represents ActBlue, and ActBlue\u2019s leaders have publicly criticized the firm.\n <\/p>\n

\n Several days after the meeting, another in-house ActBlue attorney, Zain Ahmad, forwarded the law firm\u2019s memos and other internal documents to board members and top ActBlue executives before abruptly taking a leave of absence.\n <\/p>\n

\n ActBlue representatives contend that the original 2023 letter Wallace-Jones sent to Congress was accurate, and the organization did not mislead lawmakers.\n <\/p>

Read more Why Karoline Leavitt might be impossible for Trump to replace<\/a><\/p>\n

\n In a statement to CNN, ActBlue\u2019s full board of directors affirmed their support for Wallace-Jones, saying she has \u201cdemonstrated exceptional leadership across every dimension of the job,\u201d kept the board \u201cclosely apprised of evolving risks\u201d and \u201cbuilt an incredibly capable Legal and Compliance team, ensuring we operate at the highest standards of accountability.\u201d\n <\/p>\n

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\nDemocratic Party supporters cheer during the Michigan Democratic Party General Election Kickoff Rally at Renaissance High School in Detroit, Michigan, on August 7, 2026.<\/span>\n<\/div>\n
Jeff Kowalsky\/AFP\/Getty Images<\/figcaption>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

\n In a to Congress, several months after Covington\u2019s warning, ActBlue\u2019s current outside law firm said it had implemented new measures to protect against impermissible foreign contributions. ActBlue has opted to bar any contributions with a foreign mailing address or IP address, even those from US citizens living abroad who are legally allowed to contribute to candidates back at home.\n <\/p>\n

\n Soaring legal bills amid GOP scrutiny\n<\/h2>\n

\n Wallace-Jones became CEO of ActBlue in January 2023, having previously held executive positions in several tech companies, including eBay, Facebook and Yahoo. The Stanford-trained engineer also was active in politics, having served on the city council of East Palo Alto, California, and a stint as the city\u2019s mayor during the Covid-19 pandemic.\n <\/p>\n

\n Wallace-Jones has worked to change the organization from operating as a fundraising vendor to one that meets her vision of offering a full campaign in a box to candidates.\n <\/p>\n

\n Jaime Harrison, the former chairman of the Democratic National Committee, said innovations under Wallace-Jones \u2013 such as offering a website builder \u2013 are making it easier for down-ballot candidates to run their campaigns. \u201cI\u2019m a big fan of the work she\u2019s done,\u201d he said in an interview.\n <\/p>\n

\n Harrison said he believes the criticism of Wallace-Jones has been unfair. \u201cEven on the Democratic side, sometimes being a woman and a woman of color, you get some certain biases.\u201d\n <\/p>\n

\n During Wallace-Jones\u2019 tenure, ActBlue\u2019s spending has soared, with operating expenses so far this cycle topping $93 million, far exceeding the roughly $67 million spent during the entire midterm cycle in 2022, Federal Election Commission records show.\n <\/p>\n

\n Legal bills have jumped, as a battery of lawyers has been deployed to defend the organization and Wallace-Jones personally. ActBlue has spent more than $17 million on \u201clegal consulting\u201d in a 17-month period between January 1, 2025, and May 31, 2026, according to FEC records.\n <\/p>\n

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\n \u201cWe are committed to standing up for our rights, and the rights of all Americans who disagree with this administration,\u201d Wallace-Jones said of the rising the legal expenses. \u201cPart of fighting is retaining the best legal minds to help defend our work.\u201d\n <\/p>\n

\n Her critics have questioned some of her moves, such as spending $250,000 to help underwrite a conference of the Democratic Attorneys General Association. It raised eyebrows, given the role that state prosecutors have played in investigating fundraising platforms. The partnership with the attorneys general group was approved by ActBlue\u2019s board, spokesperson Roberts LaBoo said.\n <\/p>\n

\n The warnings from Covington & Burling \u2013 and whether ActBlue mischaracterized its vetting of potential foreign contributions in the 2023 letter to Committee on House Administration Chairman Bryan Steil \u2013 now sit at the center of the a renewed Republican probe into the organization that was first launched in October 2023.\n <\/p>\n

\n That probe has since expanded to the House Judiciary and Oversight committees as well, with the trio of GOP-led committees recently demanding access to internal documents and communications relating to potential misconduct. Republicans have threatened repercussions if they are not turned over to lawmakers.\n <\/p>\n

\n \u201cThe investigation now is about ActBlue misleading Congress,\u201d Steil told CNN.\n <\/p>\n

\n ActBlue\u2019s current outside legal firm says that the group\u2019s officials have worked in good faith to answer lawmakers\u2019 questions and provide documents, along with a log of material they say is covered by attorney-client privilege.\n <\/p>\n

\n The three committees subpoenaed five former ActBlue employees who invoked their Fifth Amendment rights against self-incrimination 146 times or cited attorney-client privilege in declining to answer questions. Wallace-Jones similarly followed suit at a public hearing in June before Congress, repeatedly declining to respond to inquiries, including whether she lied to Congress.\n <\/p>\n

\n In a video posted the same day she appeared on Capitol Hill, Wallace-Jones defended the platform and said invoking the Fifth is \u201cnot an admission or even an insinuation of guilt.\u201d\n <\/p>\n

\n \u201cIt is the only reasonable response to a highly partisan proceeding that is about harassing its largest political opponent\u2019s fundraising platform,\u201d she added.\n <\/p>\n

\n Wallace-Jones and her attorneys argue that Hill Republicans are working to advance a Department of Justice investigation of the platform that Trump first demanded last year, rather than engaging in legitimate congressional oversight.\n <\/p>\n

\n Democratic lawmakers, meanwhile, argue that Republicans are waging a one-sided partisan probe, pointing to the GOP\u2019s failure to scrutinize WinRed, a fundraising platform launched in 2019 as the Republicans\u2019 answer to blockbuster fundraising on ActBlue.\n <\/p>\n

\n A CNN investigation into allegations of deceptive fundraising practices targeting older donors found that from January 2022 through June 2024 WinRed had nearly seven times more complaints filed against it with the Federal Trade Commission than ActBlue had.\n <\/p>\n

\n \u201cIt\u2019s outrageous but hardly surprising that this Republican majority has flat-out refused to investigate critical, credible reports of fraud, abuse and corruption on the Republican fundraising platform WinRed,\u201d Democratic Rep. Joe Morelle, the top Democrat on the Committee on House Administration, said at the panel\u2019s June hearing with Wallace-Jones.\n <\/p>\n

\n Asked about that critique, Steil told CNN: \u201cThere\u2019s no accusation to my knowledge that WinRed ever misled or lied to Congress.\u201d\n <\/p>\n

\n WinRed did not respond to CNN\u2019s inquiries.\n <\/p>\n

\n ActBlue remains central to Democratic politics\n<\/h2>\n

\n As part of his order to investigate ActBlue, Trump also directed the attorney general to issue a report on its findings to the White House. It was due in October 2025, but nothing has been made public to date. Earlier this year while still the acting Justice Department head, Attorney General Todd Blanche indicated it remained a priority for the agency.\n <\/p>\n

\n The Justice Department declined to provide any details about status of the probe to CNN, citing a policy against discussing \u201congoing\u201d investigations.\n <\/p>\n

\n ActBlue scored a legal victory in June when a federal judge in Boston, where ActBlue is based, halted a lawsuit against the platform brought by Texas Attorney General Ken Paxton, who is running for the US Senate.\n <\/p>\n

\n Through it all, ActBlue has remained the primary fundraising engine for Democrats.\n <\/p>\n

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\"David<\/figure>\n<\/figure>\n\n<\/div>\n
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\nDavid Crowley, Democratic candidate for Wisconsin governor, shakes hands with supporters while campaigning with Wisconsin Gov. Tony Evers on August 7 in Sheboygan, Wisconsin.<\/span>\n<\/div>\n
Kayla Wolf\/AP<\/figcaption>\n<\/div>\n<\/div>\n<\/div>\n<\/div>\n

\n It recently announced raising $586 million during the second quarter of 2026 for Democratic causes, candidates and organizations. ActBlue officials said that marked the strongest fundraising period in a non-presidential election season in its 22-year history.\n <\/p>\n

\n But the alarm over potential threats to ActBlue has prompted some candidates to begin putting in place backup fundraising systems should the platform come under a debilitating attack from the Trump administration before November\u2019s election.\n <\/p>\n

\n One Democratic House candidate has had donors ask about other donating platforms because the contributors are nervous about ActBlue.\n <\/p>\n

\n The party strategist encouraging candidates to pursue backup fundraising tools is confident Democrats can adapt should ActBlue become seriously endangered.\n <\/p>\n

\n \u201cThe type of people who give to our campaigns are well informed,\u201d the person said. \u201cI think you\u2019d have to say, \u201cListen, Republicans have taken down ActBlue, and so I\u2019m deeply sorry, but you\u2019re going to need to put your credit card back in.\u2019\u201d\n <\/p>\n

\n \u201cThey\u2019ll do it,\u201d the person added. \u201cIt\u2019s a little more friction, but it\u2019ll happen.\u201d\n <\/p>

Read more Rep. Max Miller sued by ex-wife over release of \u2018sensitive\u2019 photo of child<\/a><\/p>\n<\/div>\n<\/div>","protected":false},"excerpt":{"rendered":"

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