“The loan-repayment limit does not serve that interest, and the government’s arguments to the contrary boil down to hypothetical concerns about influence and access to incumbents,” the panel wrote. “Such justifications are not sufficient under the First Amendment to uphold a statute that burdens political speech.”
The FEC declined to comment.
The case arose from Cruz’s 2018 run for Senate. He made two loans the day before the general election for a total of $260,000. After he won the election, Section 304 prevented Cruz from paying himself back the final $10,000.
Election and campaign lawyers said the decision could make it even easier for wealthy candidates to run for office.
“The constitutionality of this provision has long been in doubt, so this decision is not a surprise,” campaign finance lawyer Brett Kappel said. “It will make it marginally easier for both parties to recruit self-funding candidates.”
