On April 1, 2019, Ted Cruz for Senate and Senator Ted Cruz (plaintiffs) filed suit against the Commission alleging that the limit on repayment of candidate loans at 52 U.S.C. § 30116(j) violates the First Amendment to the Constitution.
The Act prohibits campaigns from repaying more than $250,000 in personal loans incurred by the candidate in connection with that candidate’s election with contributions made after the date of that election. Plaintiffs allege that the $250,000 post-election repayment limitation in the statute and the Commission’s implementing regulation violate the First Amendment rights of candidates, their committees, and their donors. Plaintiffs also allege that the regulation is unlawful because it is contrary to the language of the statute. Plaintiffs further allege that the challenged statute and regulation unconstitutionally limit the time period in which a candidate may raise money to communicate a political message and “effectively limit the candidate’s ability to lend the campaign necessary funds.”
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