New Ethics Rule Allows Federal Employees to Accept $10K in Legal Funds Donations
Renzo Velez | POGO
The Office of Government Ethics (OGE) released a proposed rule this week removing limitations for federal employees who accept donations to pay their legal fees. The proposed rule aims to help employees avoid the perception that they are using their public positions for private gain by clarifying and broadening the list of individuals from whom federal employees can receive gifts.
According to OGE, the proposed regulation clarifies who cannot donate, imposes a cap on donations, and mandates transparency in the form of quarterly reports.
“There is currently no statutory or regulatory framework for establishing a legal expense fund in the executive branch, which has created concerns regarding the appearance of corruption in the creation and operation of legal expense funds for the benefit of executive branch employees,” reads the proposed rule.
Federal employees can circumvent gift limitations by setting up a legal defense fund. An individual that isn't a lobbyist, an agent of a foreign government, or acting on behalf of someone else can donate up to $10,000 per year to the employee's fund if the donor does not have business with the employee's agency. An individual regulated by the beneficiary's agency would be ineligible to donate. Organizations cannot contribute either.
Under the proposal, the funds are strictly for legal expenses, and federal employees must publicly report donations over $250 quarterly. Ethics office officials clarified the proposal covers the legal fees related to official duties in past or current positions and any prior positions on a campaign or a presidential transition team.
Federal employees accepting pro bono legal services would be subject to the same rules. Though established employee groups, such as unions, have the right to provide free legal services.
Before a final rule is issued, OGE will accept comments through June 21.