The landmark Supreme Court ruling in the Citizens United case paved the way for explosive growth in political spending during the 2012 election cycle. However, for government contractors and their principals, a growing number of “pay-to-play” laws restrict political contributions and fundraising, and can result in severe penalties, including the loss of contracts. This alert looks at recent developments with pay-to-play laws and identifies key steps for staying in compliance.

States and Municipalities -

So-called pay-to-play laws have proliferated in recent years, with states and municipalities leading the way in imposing limits or even outright bans on political contributions by government contractors, their principal owners, officers, and those employees involved in the contracting process. Many of these laws also restrict political fundraising, as well as require contractors to disclose political contributions in conjunction with bids and during the pendency of a contract.

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