Harry Reid - Improper use of campaign funds

Summary

For several years, Senator Reid donated funds from his re-election campaign to an employee holiday fund for the employees of the building where he resides.  Although this appears to be in violation of federal election law and Senator Reid has reimbursed his campaign fund with his own money, Senator Reid insists the use of the money was legal. 

 

Federal election law

Federal election law permits campaigns to provide "gifts of nominal value" but prohibits candidates from using political donations for personal expenses, such as mortgage, rent or utilities for "any part of any personal residence."  The law specifically defines prohibited personal use expenses as any "obligation or expense of any person that would exist irrespective of the candidate's campaign or duties as a federal officeholder."

 

REC Employee Holiday Fund

Senator Reid and his wife live at Ritz-Carlton in Washington where they purchased a condo at the hotel for $750,000 in March of 2001.  The residents of the hotel can donate money for the holiday bonuses of the employees there through the Residents Executive Committee Holiday Fund.  The fund has been in existence for many years.

 

Donations made by Senator Reid

Senator Reid gave the following donations to the holiday fund:

• $600 in 2002
• $1200 in 2004
• $1500 in 2005

For two of those years, the donations are listed as campaign "salary" and one year, they are listed as a contribution.

When asked about the donations, Senator Reid stated:

These donations were made to thank the men and women who work in the building for the extra work they do as a result of my political activities, and for helping the security officers assigned to me because of my Senate position.

Larry Noble, the Federal Election Commission's former chief enforcement lawyer, said Reid's explanation is aimed at a "gray area" in the law by suggesting the donations were tied to his official Senate and political work.

What makes this harder for the senator is that this is his personal residence and this looks like an event that everybody else at the residence is taking out of their personal money as they're living there.

References

[1] Website: USA Today Article: Reid used campaign money for Christmas bonuses at personal condo Author: NA Accessed on: 06/15/2010

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