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In-Compliance - Holtzman Vogel's July 2025 Political Law Update

By: Michael Bayes, Daniel Bruce, Rebecca Layne, Joseph T. Burns, Kellen Dwyer, Erielle Davidson, Matthew Petersen, Mark I. Pinkert, William M. Klimon, Patrick Sternal, Esther Nies, Benjamin Paris, Karyann Parkinson, Abigail Putnam, Tom Rollins, and Nate Wertjes

In Compliance: Holtzman Vogel's Monthly Round-Up

In this issue of In-Compliance, we cover the following:

Supreme Court Preview: NRSC v. FEC

On June 30, 2025, the United States Supreme Court agreed to hear what may be the most significant campaign finance case since Citizens United freed corporate entities to spend unlimited sums on independent expenditures. In National Republican Senatorial Committee (NRSC) v. Federal Election Commission (FEC), the Court will consider whether limits on coordinated party expenditures violate the First Amendment. 

IRS Enters into Consent Decree Limiting Application of Johnson Amendment; New Position Allows Churches to Endorse Candidates in Certain Situations

On July 7, 2025, in National Religious Broadcasters, et al. v. Billy Long, Commissioner of the Internal Revenue Services, et al., the IRS agreed to enter into a consent decree in which it agreed that the Johnson Amendment, which has long conditioned section 501(c)(3) tax exempt status on refraining from partisan political activity, cannot be applied to churches and other houses of worship in certain specific circumstances. 

Court Upholds FEC’s Express Advocacy Interpretation but Finds Dismissal Reasoning Too Conclusory; Commissioners Issue Clarifying Statement Regarding Montana Senate Ads

On June 26, the U.S. District Court for the District of Columbia held that the FEC's dismissal of a complaint alleging that ads aired during Montana’s 2024 Senate primary should have been reported as independent expenditures was based on a permissible interpretation of the “express advocacy” standard. However, the court found that the Commission failed to adequately explain its conclusion that the ads did not meet that standard and, consequently, remanded the matter for a fuller rationale.

Second Circuit Overturns Conviction of Election Meme Poster Douglass Mackey 

On July 9, the Second Circuit overturned the conviction of Twitter (now X) user, Douglass Mackey, for posting memes prior to the 2016 presidential election indicating that Hillary Clinton supporters could vote by text message. The memes at issue were posted only briefly before being removed by Twitter, and the Clinton campaign was able to respond to persons who texted in response to the memes or similar postings circulating on the internet. 

Challenge to FEC’s Conduit Reporting Rules Dismissed; Appeal Filed

On July 9, the District Court for the Northern District of Texas dismissed a challenge to the constitutionality of the conduit disclosure requirement in the Federal Election Campaign Act. 

Defending America’s Sovereignty Through FARA – Sun Case Exposes States’ Vulnerabilities

Joe Burns and Kellen Dwyer wrote an article for The National Law Review on Linda Sun, a former top aide to New York Governor Kathy Hochul, who will stand trial in November for allegedly secretly acting as an agent of officials from the Chinese consulate in New York while serving in state government. 

Fuld v. PLO: A Victory for American Victims of Terror

In a landmark decision issued in June, a unanimous Supreme Court held in Fuld v. PLO that the Palestinian Authority and the Palestine Liberation Organization can be sued in U.S. courts for supporting terrorism abroad. 

U.S. House Ethics Committee Concludes AOC Violated Ethics Rules at Met Gala

On July 25, the U.S. House of Representatives Committee on Ethics issued a report finding Representative Alexandria Ocasio-Cortez in violation of ethics rules. The Committee’s investigation and findings related to Representative Ocasio-Cortez’s highly publicized attendance at the Met Gala.

Wisconsin Supreme Court Rejects Challenges to State’s Congressional Districting Maps

In late June, the Wisconsin Supreme Court declined to hear lawsuits challenging the state’s current congressional maps, leaving in place a map that favors Republicans ahead of the 2026 midterm elections. 

Federal Appeals Court Blocks Maine Law Restricting Campaign Spending by U.S. Companies with Foreign Ties

A federal appeals court upheld a lower court’s decision to block a Maine law that sought to restrict campaign spending by entities with foreign ties. The law prohibited campaign spending by entities with even minimal foreign ownership or influence. 

Latest Effort in Montana to Circumvent Citizens United Would Redefine Corporate Authority to Prohibit Election Spending

A new effort to circumvent the Supreme Court’s decision in Citizens United was recently unveiled in Montana. In Citizens United, the Supreme Court held that the First Amendment prohibits the government from restricting a corporation’s independent expenditures. Federal, state, and local laws that purport to do so are unconstitutional. The Transparent Election Initiative recently introduced a proposed state ballot initiative to amend Montana’s state constitution to “bypass[] Citizens United.”

New Yorkers Not Likely to See Musk’s America Party on a Ballot Anytime Soon

Joe Burns explains in The National Law Review that New York election law prohibits a political party from including the words “America,” “American,” or any abbreviation or plural thereof, in its name. The prohibition is designed to ensure that parties are not implying any sort of governmental authority or endorsement. 

Controversial New York Judicial Reorganization Bill Likely Headed to Governor’s Desk

Before adjourning for the year, the New York State Legislature passed a bill that could significantly reshape how many New Yorkers elect Justices of the New York State Supreme Court. The measure, if signed into law by Governor Kathy Hochul, would create two new judicial districts and redraw the lines of three existing ones within the Appellate Division, Fourth Department. 

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