The Israeli government is running advertisements on a popular podcast hosted by Sen. Ted Cruz (R-Texas), raising questions about whether the staunchly pro-Israel lawmaker is indirectly receiving campaign funding from a foreign country.
Radio and podcast giant iHeartMedia has syndicated Cruz’s show, “Verdict with Ted Cruz,” since 2022. Because of lobbying-related restrictions, the company cannot legally pay the senator for ad revenue. But, it turns out, that’s not the only way to ensure the money benefits Cruz.
Under an unusual licensing deal, iHeartMedia agreed to donate revenue “associated with (the show’s) advertising sales” to the Truth and Courage PAC, a super PAC dedicated to “ensuring that Ted Cruz is re-elected to the United States Senate.” The company has given at least $1,738,000 of “digital revenue” to the Truth and Courage PAC since 2023, according to Federal Election Commission filings.
The agreement has drawn significant scrutiny from watchdog groups, some of which filed a complaint against Cruz with the FEC alleging he “brazenly violated” laws that bar candidates from receiving corporate donations. Though the senator admitted to having met with representatives from the company to discuss the acquisition of the show, the agency ruled in his favor, finding that there was “no available information to indicate that Cruz solicited, directed, received, transferred, or spent the funds iHeart paid to the PAC.”
“Cruz’s role was limited to hosting the Podcast and he does not appear to have been involved with the decision for iHeart to pay the PAC, meaning that he did not direct or solicit any funds,” the commission found.
The Israeli government-funded ad revenue appears to operate in a similar gray area. The advertisements, which are part of the $7 million “I am Israel” campaign launched in June, are geared toward encouraging Christians to visit the country and see biblical sites for themselves.
“Israel isn’t a destination; it’s a revelation, where every site you’ve studied, every scripture you’ve memorized, every sermon that ever moved you suddenly has an address, a landscape, a heartbeat,” Ben Ferguson, Cruz’s co-host, says in one ad. “This is the trip that changes not just how you see the Holy Land, but how you see everything.”
Ferguson then urges listeners to “start planning your trip today” and tells them to follow “Visit Israel” accounts on social media. The ads do not disclose that Visit Israel is a public-facing entity of the Israeli ministry of tourism.
The campaign appears to exploit a loophole in election financing laws. Candidates and PACs are banned from receiving any funding “directly or indirectly” from foreign nationals, according to the FEC. But Cruz would only run afoul of campaign finance laws if Israel explicitly earmarked its contribution to go to the PAC, said Craig Holman, a leading expert on campaign finance laws and an ethics lobbyist at Public Citizen.
“Assuming there is no formal agreement, then the money is considered iHeartRadio funds, with which it can do as it pleases,” Holman said.
Holman blamed court decisions like Citizens United for opening the path to Cruz’s “surreptitious financial arrangement” with iHeartMedia.
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