Since the landmark Citizens United decision in 2010, super PACs have become a fixture of U.S. political campaigns. But despite the initial anticipated boom in corporate influence in elections, most super PAC funding to date has come from wealthy individuals, closely-held corporations, and nonprofits, not from large for-profit corporations.

However, there is an emerging shift in the super PAC landscape. Not only are larger corporations making sizeable contributions to super PACs, but corporations are now banding together to support even larger super PACs focused on the interests of a specific industry. Companies and industries considering starting or funding one of these new types of super PACs—what we refer to as “mega PACs” due to their increased size and prominence—should consider a series of issues before getting involved, as detailed below.

Background on Super PACs

Super PACs are a special type of political committee or PAC, sometimes known more formally as “independent expenditure-only political committees.” As a result of the Supreme Court’s decision in Citizens United, a related lower court decision, and opinions of the Federal Election Commission (“FEC”) and its state counterparts, a PAC that does not coordinate with candidates or parties but remains wholly independent can accept funds from most individuals, corporations, and other entities in unlimited amounts. Super PACs register with the FEC or state regulators and publicly disclose both their receipts and disbursements. They do not contribute to candidates like a traditional PAC, but spend their money on advertising and other public outreach. Super PACs have come to play a prominent role in U.S. elections, supporting candidates for president, a party’s candidates for House and Senate, and increasingly state and local candidates, as well.

What’s New?

When super PACs first arrived on the scene, the media focused on how corporations could start contributing unlimited amounts in federal elections to support these PACs. But the reality so far has been that relatively few large, for-profit corporations do so. Super PACs have remained the domain of wealthy individuals, nonprofits, and closely-held corporations.

Now, however, we are seeing the emergence of super PACs that are focused on, and often funded by, single industries. Public disclosures and reporting to date indicate these “mega PACs” are funded by a combination of industry companies themselves and executives and employees from those companies. The amounts of money involved in these industry-focused “mega PACs”—some of them raising well in excess of $100 million—is fundamentally transforming the federal campaign finance landscape, rivaling even those super PACs associated with House and Senate leadership or Presidential candidates.

Considerations for Corporate and Industry Activity

Despite the popular imagination that super PACs are an anything-goes world of unlimited giving and spending, there are numerous important compliance considerations when contributing to, and operating, a super PAC. These issues are especially relevant to corporations and their executives who want to engage in giving to or running these industry-focused mega PACs. These include:

• Disclosure. As noted above, and contrary to common belief, super PACs must file reports with the FEC or relevant state regulator, publicly disclosing their donors and spending. Therefore, donors not comfortable with being associated with a super PAC and its activities need to consider options carefully before giving.
• Federal contactor ban. Federal law prohibits federal government contractors from making contributions to federal campaigns, parties, and PACs. While there is reason to question the constitutionality of this law as applied to super PAC contributions after Citizens United, it remains on the books and the FEC continues to enforce it, regularly investigating and collecting fines from contractors that contribute to super PACs. Some states have similar laws. Companies should consider their internal activities thoroughly and consult with counsel on this issue.
• Foreign national ban. Federal law prohibits foreign nationals from making contributions or expenditures, or participating in the decision making of others about the same, in any U.S. election—federal, state, or local. A “foreign national” includes any individual who is not a U.S. citizen or lawful permanent resident (“green card” holder), as well as foreign corporations and other foreign organizations. This means, for example, that a company’s foreign national executives cannot weigh in on making a contribution to or the management of a super PAC. Especially for cross-national companies, this can be an important consideration in getting involved with these industry-focused mega PACs.
• Corporate in-kind support. Any support to a super PAC can be a contribution to that PAC, including nonmonetary support. Corporations may have experience using company time and resources to administer their own “separate segregated funds,” where such support is generally not a contribution under FEC regulations. But employee time and corporate resources devoted to operating a super PAC will often be considered in-kind contributions to the super PAC and subject to reporting and disclosure. Understanding when this is the case is important in evaluating the issues outlined above.
• Coordination. Super PACs must operate independently of candidates and parties. The parameters of what constitutes impermissible coordination are complicated and vary among jurisdictions, but it is important that those running the organization understand these risks. This can prove especially challenging with a mega PAC associated with multiple companies within an industry that also want to engage in lobbying and other interactions with those same candidates the PAC might want to support.

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We are entering a new world of corporate and industry super PAC activity. Covington is one of the very few firms that have experience advising on the structure and operations of these industry-focused “mega PACs.” Our bipartisan Election and Political Law practice is ranked Band 1 by Chambers Partners and regularly advises potential contributors as well as operators of super PACs at the federal, state, and local levels. We have also just released our comprehensive document, Forming and Operating Super PACs: A Practical Guide for Political Consultants in 2026, that goes into the practicalities of running these complex operations.

If you have any questions concerning the material discussed in this client alert, please contact the following members of our Election and Political Law practice.