Israeli Tourism Ministry Ads Run on Ted Cruz's Podcast, Whose Revenue Flows to His Super PAC

The Israeli government is buying advertising time on "Verdict with Ted Cruz," a podcast whose ad revenue does not go to iHeartMedia's bottom line or to Sen. Ted Cruz personally, but to a super PAC dedicated to his re-election.

The arrangement, reported by Responsible Statecraft, rests on a licensing deal iHeartMedia struck when it began syndicating Cruz's show in 2022. Because federal law bars the company from paying the senator directly for ad revenue, iHeartMedia instead agreed to donate money "associated with" the show's advertising sales to the Truth and Courage PAC, a super PAC formed to get Cruz re-elected. FEC filings show iHeartMedia has given the PAC at least $1,738,000 in "digital revenue" since 2023.

Watchdog groups challenged the structure, filing an FEC complaint alleging Cruz "brazenly violated" the ban on candidates receiving corporate donations. The commission ruled for Cruz, finding no evidence he "solicited, directed, received, transferred, or spent the funds iHeart paid to the PAC," even though Cruz has acknowledged meeting with iHeartMedia representatives about acquiring the show.

"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 FEC found.

The Israeli government's ads are part of a $7 million "I am Israel" campaign launched in June, aimed at Christian audiences and pitched around biblical tourism. In one spot on Cruz's show, co-host Ben Ferguson tells listeners that "Israel isn't a destination; it's a revelation," and urges them to "start planning your trip today" and follow "Visit Israel" on social media. The ads do not disclose that Visit Israel is a public-facing arm of Israel's tourism ministry.

Federal law bars candidates and PACs from accepting money "directly or indirectly" from foreign nationals. But Craig Holman, a campaign finance expert at Public Citizen, told Responsible Statecraft that Cruz would only be exposed to liability if Israel explicitly earmarked its ad payment for the PAC. Absent such an agreement, he said, "the money is considered iHeartRadio funds, with which it can do as it pleases." Holman placed the blame on Citizens United for creating what he called a "court-created loophole" that lets "wealthy interests and even foreign governments launder money to outside groups with the explicit intent of the outside group spending that money to support a specific candidate," adding that "Israel is exploiting" it.

Neither Cruz, iHeartMedia, nor the Truth and Courage PAC responded to Responsible Statecraft's requests for comment on whether Israeli ad money has reached or will reach the PAC. iHeartMedia's last disclosed donation to the PAC was in May, and the PAC is not required to report further contributions until the third-quarter FEC filing deadline in September.

The tourism push follows a steep drop in American visitors to Israel, from 105,700 in May 2019 to 22,600 in May of this year, according to figures cited in the campaign's launch.