One of the country's most hotly contested gubernatorial contests is taking place in North Carolina, where Lt. Governor Mark Robinson (R) — known for his extremist views on LGBTQ rights, abortion, and other issues — is facing off against Attorney General Josh Stein (D). About five months from Election Day, polls show that the race is essentially tied. 

But Stein's campaign has a decisive lead in fundraising. The most recent campaign finance reports show that Stein has raised over $19 million, with $12.7 million cash on hand. Robinson, however, has raised less than $11 million and has $4.5 million in cash. 

Republicans in the North Carolina legislature have responded by introducing legislation that would dramatically alter the state's campaign finance rules in the middle of an election. 

Under existing North Carolina campaign finance law, corporations and labor unions cannot contribute directly or indirectly to state campaigns or committees. This prevents the main national fundraising vehicles for gubernatorial campaigns — the Democratic Governors Association (DGA) and the Republican Governors Association (RGA) — from donating to North Carolina political committees. These committees, known as 527s, accept unlimited contributions from corporations and individuals. 

The changes proposed by North Carolina Republicans would allow the RGA and the DGA (or any other 527) to donate unlimited amounts to any "[s]tate, district, or county executive committee of any political party or an affiliated party committee." Should these changes become law, the only requirement is that the 527s must create two "accounts"—one accepting corporate money and another accepting individual donations in any amount. The Republican proposal would allow the 527s to donate unlimited amounts to North Carolina committees from the account that accepts individual donations. 

Bob Hall, a veteran North Carolina campaign finance expert, explained that the new rules would allow "wealthy individuals with new ways to give tens (or even hundreds) of thousands of dollars to support a North Carolina candidate without their name being identified with the donation." 

The changes were added at the last minute during a conference committee for a completely unrelated bill that restricts mask-wearing in public. This tactic allowed Republicans to bring the provisions to a vote in the State Senate without a hearing or any opportunity for amendments. A vote is expected in the House this week. 

Why anonymity matters to North Carolina Republicans

Under existing North Carolina law, individuals can already donate unlimited amounts directly to state party committees. So why is this change so important? Robinson is one of the most radical candidates ever to win a major party nomination for governor, and many major donors simply do not want to be associated with him. 

In June 2021, for example, Robinson called LGBTQ people "filth" and said exposure to LGBTQ people and issues in schools was child abuse. In a sermon later that year, Robinson said "straight" couples were "superior" to same-sex couples and compared being gay to "what the cows leave behind." Robinson has also called LGBTQ people “devil-worshiping child molesters”

On Facebook, Robinson repeatedly minimized the atrocities of Nazi Germany and the Holocaust. "I am so sick of seeing and hearing people STILL talk about Nazis and Hitler and how evil and manipulative they were," Robinson wrote on Facebook in 2017. He accused unknown forces of "pushing this Nazi boogeyman narrative all these years." 

In 2019, Robinson said that abortion rights were "not about protecting the lives of mothers" but "about killing the child because you weren’t responsible enough to keep your skirt down." Robinson said women choose to have an abortion so that they can keep living "on easy street" and "keep running to the club every Friday night.” He favors an abortion ban from the moment of conception.

By changing the campaign finance rules, North Carolina Republicans give wealthy donors a vehicle to funnel money to Robinson's campaign without fingerprints. Here is an example of how it could work: 

1. An individual donates $1 million to the RGA. 

2. The RGA immediately donates $1 million to the North Carolina Republican Party. 

3. The North Carolina Republican Party then donates the $1 million to Robinson's campaign. 

The individual's contribution to the RGA will eventually become public. But, because the RGA raises large sums of money from hundreds of donors, it will be impossible to definitively connect any contribution to the RGA to the North Carolina Republican Party. It makes a mockery of campaign finance disclosure by allowing individuals to anonymously launder unlimited amounts of money to North Carolina candidates. 

The proposed change to North Carolina's campaign finance laws also allows the RGA to funnel into the tens of millions of dollars it currently has on hand to Robinson's campaign, whether or not the people who donated that money would have agreed to donate to a candidate like Robinson directly. 

Under current law, the RGA could buy ads in support of Robinson. But, the proposed changes provide additional benefits to Robinson. When a candidate buys a television ad close to an election, they get the lowest available rate, maximizing the impact of each dollar. If the RGA buys an ad directly, it is not entitled to the lowest rate — and sometimes pays three to five times more for a television spot than candidates. 

The proposal to change North Carolina's campaign finance rules came two days after the Stein campaign began running a devastating ad highlighting Robinson's comments on abortion:

Robinson's campaign does not currently have the financial resources to respond to this ad. The proposed changes to North Carolina's campaign finance law could result in an influx of cash. 

The proposal's complexity is part of its appeal to North Carolina Republicans. They hope that by the time anyone figures out what is going on, it will be too late. North Carolina Senate Democrats walked out of the vote on the proposal in protest to draw attention to the scheme. "We walked out today because it is critical we shine a light on a dark-of-night rushed process that will undermine our democratic process," North Carolina Senator Jay Chaudhuri (D) said.

"Leveling the playing field"

North Carolina House Speaker Tim Moore (R) defended the proposal, stating it would "level the playing field so that everyone plays by the same rules." Moore and other Republicans cited a 2020 advisory opinion by the North Carolina Board of Elections. That opinion allowed the DGA to use its FEC account to collect smaller contributions below federal limits (currently $5,000 per year) and donate those grassroots contributions to state party committees. 

Moore's claims suggesting disparate rules are not true. Today, both the DGA and the RGA are playing by the same rules. Nothing prevented the RGA in 2020 from establishing a small dollar PAC and transferring that money to the North Carolina Republican Party. And nothing prevents the RGA from establishing such a PAC today. The RGA has simply chosen not to do so. 

Instead, North Carolina Republicans have proposed a last-minute change that creates "a significant loophole in North Carolina law." 

Despite the brazenness of the scheme, it stands a strong chance of success. Republicans control a supermajority in both chambers of the North Carolina legislature, allowing them to override a potential veto by Governor Roy Cooper (D-NC).