HR7304-119

What This Bill Does

The OMAR Act amends the Federal Election Campaign Act to prohibit an authorized committee of a candidate, or another political committee established, maintained, or controlled by a candidate or federal officeholder other than a party committee, from directly or indirectly compensating the candidate's or officeholder's spouse for services to or on behalf of the committee. The same committees must include a separate statement in campaign finance reports for payments, including direct or indirect compensation, made to a spouse or immediate family member during the reporting period. Immediate family includes children, in-laws, parents, siblings, siblings-in-law, and grandchildren. If a covered committee violates the spouse-compensation or disclosure rule and the candidate or officeholder knew of the violation, the penalty is imposed on that candidate or officeholder, and the committee may not reimburse the penalty.

Who Benefits and How

Voters, campaign-finance watchdogs, journalists, and donors benefit because payments to spouses and immediate family members become easier to see and spouse compensation from candidate-controlled committees is banned. The Federal Election Commission benefits from clearer statutory rules for when penalties must be imposed on candidates or officeholders personally. Political opponents and ethics groups benefit from a stronger tool to challenge campaign spending that routes money to family members.

Who Bears the Burden and How

Candidates, federal officeholders, candidate spouses, immediate family members, and candidate-controlled committees face new compensation limits, disclosure work, and personal penalty exposure. Committees must identify and separately report family payments, stop direct or indirect spouse compensation, and avoid reimbursing candidates for penalties. Candidates and officeholders who know about violations must pay penalties personally. Campaign treasurers and compliance vendors must update reporting systems and internal controls.

Key Provisions

• Prohibits candidate-controlled federal political committees from directly or indirectly compensating a candidate's or officeholder's spouse.
• Requires separate disclosure of payments to spouses and immediate family members in campaign finance reports.
• Requires penalties for knowing violations to be imposed on the candidate or officeholder rather than the committee.
• Prohibits committees from reimbursing candidates or officeholders for penalties tied to spouse-compensation or family-payment violations.