Sen. Gramm to Pay $30,000 Campaign Funding Penalty

Sen. Phil Gramm (R-Tex.) announced Saturday that his 1984 campaign committee has agreed to pay a $30,000 penalty to settle a five-year dispute with the Federal Election Commission.

Although errors made by his first Senate campaign committee were “unintended and in no way benefited the campaign . . . they were errors,” Gramm said.

In a statement, Gramm said he rejected suggestions that he take the FEC to court to fight the penalty as “unfair and unjustified” because a lawsuit would cost many times the $30,000 penalty.

Donald R. White, treasurer of the “Friends of Phil Gramm” 1984 Senate campaign committee, said the FEC accused the group of failure to make timely reports and failure to supply adequate documentation of contributions.

White said the FEC questioned the campaign’s handling of contributions from husbands and wives on joint checking accounts. The FEC found that $15,000 of $690,000 in potentially excess contributions was outside the limit of $1,000 per person, per election.

After the committee provided documentation on the questionable contributions, the FEC decided that $675,000 was within the limits. The remaining $15,000 will be donated to charity, White said.