Political fundraising in the US keeps growing in scale and complexity, and the run-up to the 2026 midterm elections is accelerating that trend.

Candidates, party committees and political action committees are raising money earlier and spending harder, especially in tightly contested races, according to StarCompliance.

Every company and individual must comply with strict campaign finance rules under the Federal Election Campaign Act (FECA), alongside state-level legislation. These rules are designed to stop straw donor and reimbursement schemes, as well as the reputational fallout that can follow.

For firms that work with government bodies or bid for public contracts, the stakes are higher. They must track, pre-clear and report employee donations, because a single contribution can trigger “pay-to-play” restrictions.

The consequences range from penalties to outright bans on contracting with affected government entities, while unusually large aggregate donations may draw scrutiny as potential bribery. With conflicts of interest and disclosure duties spanning federal, state and local jurisdictions, supervising donations is both difficult and prone to error.

Recent cycles have seen billions of dollars raised and spent on political and judicial races at county, state and federal level. As volumes climb, so does the chance that staff will take part, and not only senior leaders.

Employees in any function may donate without realising their role or client relationships could create a regulatory problem. Those in public sector business development or client coverage are particularly exposed. Without consistent oversight, firms often lack visibility into who is giving and where, with gaps surfacing only when remediation is harder.

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