US Companies Move to Cut Off Funding for Politicians

Donation Streams Dry Up Amid Congressional Breach and Republican Presidential Election Fraud Claims

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Kwon Jae-hee] American companies, including big tech firms, are suspending political donations following the Capitol riot by supporters of President Donald Trump. This unprecedented breach of the Capitol and the disappointment over some Republican lawmakers' claims of 'election fraud' have led to a cutoff of financial support.

According to CNBC on the 11th (local time), Google, Facebook, and Microsoft (MS) announced in statements that they will completely halt political contributions through Political Action Committees (PACs) following the Capitol riot incited by President Trump's supporters.

A Facebook spokesperson stated, "In light of the horrific violence that occurred last week in Washington DC, we are suspending all PAC political donations for the first quarter of this year." Google and MS also announced that they are reviewing and reassessing the incident last week and will temporarily suspend donations to PACs.

This movement is spreading not only among big tech companies, which have traditionally leaned Democratic, but also across Wall Street and the broader business community. Telecommunications company AT&T and automobile manufacturer Ford also announced the suspension of political donations on the same day, while on Wall Street, Goldman Sachs, private equity firm Blackstone Group, and Coca-Cola declared they would stop political contributions.

Some companies have targeted the Republican Party, holding them responsible for the Capitol riot and election denial, by suspending political donations. The world's largest hotel chain, Marriott, decided to halt political donations to 147 Republican members of Congress who rejected President-elect Joe Biden's victory. Other notable companies include investment bank Morgan Stanley, credit card company American Express, home-sharing service Airbnb, and chemical company Dow. American Express stated, "We have decided to suspend political contributions to federal lawmakers who seek to overturn the election results and obstruct a peaceful transfer of power."

The Washington Post (WP) commented, "As major companies suspend political donations, the U.S. election funding system is being shaken," and assessed that "concerns among U.S. companies over election fraud and the violent incident have manifested in the suspension of political donations."

This content was produced with the assistance of AI translation services.