Ted Cruz caught in PAC scandal.

Ted Cruz Under Scrutiny for Financial Ties Between Podcast and iHeartMedia, Ethics Complaints Allege Illicit Campaign Aid

U.S. Sen. Ted Cruz, R-Texas, is facing intensified scrutiny over his podcast's financial ties to iHeartMedia, with ethics complaints alleging the company's support for his reelection campaign may violate federal law. At least three complaints have been filed with the U.S. Senate Select Committee on Ethics, the most recent submitted last week.

The syndicate deal between Cruz's podcast, "Verdict with Ted Cruz," and San Antonio-based iHeartMedia is at the center of the controversy. While a Cruz spokesperson claims the senator doesn't profit from the deal, iHeartMedia has contributed $787,000 to a super PAC supporting Cruz's campaign against Democratic challenger U.S. Rep. Collin Allred.

Michael Tijerina, a Collin County Democratic Party precinct chair, filed a complaint on July 14, accusing Cruz of violating federal law and Senate ethics rules. Tijerina's complaint alleges that Cruz is effectively receiving a "thing of value" through appearances on his podcast, referencing the significant funds funnelled to the super PAC.

Senator Cruz claims to volunteer his time to appear on the podcast," reads the complaint Tijerina filed. "However, Senator Cruz seems to be receiving a 'thing of value' for his appearances — namely hundreds of thousands of funds to a super PAC supporting his re-election campaign."

Previous complaints by the Campaign Legal Center and End Citizens United also cited violations of the Federal Election Campaign Act, noting iHeartMedia's payments to the super PAC, reported as "digital revenue," amounted to illegal campaign contributions.

Since the initial complaints, Cruz's Truth and Courage PAC has received an additional $156,000 from iHeartMedia, bringing the total to $787,000. The media company stated that the funds relate to "ad sales," while Cruz's spokesperson compared the podcast arrangement to appearing on cable or network news shows.

Tijerina is calling for an investigation and "appropriate remedial action" against Cruz, suspecting improper conduct. With Cruz's substantial financial advantage and a slim lead in the polls, the pressure mounts for the Ethics Committee to address the allegations.

Sources:

• Sen. Ted Cruz faces new scrutiny over podcast deal with iHeartMedia amid ethics complaints; by Faviola Perez, Austin American-Statesman
• Poll: Cruz's lead over Allred is slim, may hinge on undecided voters; by Jeremy Wallace, Houston Chronicle