Академический Документы
Профессиональный Документы
Культура Документы
Lumen
oundless Political cience (https://courses.lumenlearning.com/oundless-politicalscience/)
The Role of Mone in Campaigns and lections
Campaigns and lections
Regulating Campaign Finance
LARNING OJCTIV
Assess the origins, scope, and impact of mone spent on election campaigns
KY TAKAWAY
Ke Points
At the federal level, campaign nance law is enacted Congress and enforced the Federal lection
Commission (FC), an independent federal agenc.
Races for non-federal o�ces are governed state and local law. Over half the states allow some level of
corporate and union contriutions.
At the federal level, pulic funding is limited to susidies for presidential campaigns. To receive susidies in the
primar, candidates must qualif privatel raising $5000 each in at least 20 states.
In addition to primar matching funds, the pulic funding program also assists with nancing the major parties’
presidential nominating conventions and funding the major part nominees’ general election campaigns.
In 1971, Congress passed the Federal lection Campaign Act (FCA), instituting various campaign nance
disclosure requirements for federal candidates.
Ke Terms
pulic funding: At the federal level, pulic funding is limited to susidies for presidential campaigns. This
includes (1) a “matching” program for the rst $250 of each individual contriution during the primar campaign,
(2) nancing the major parties’ national nominating conventions, and (3) funding the major part nominees’
general election campaigns.
federal election commission: The Federal lection Commission (FC) is an independent regulator agenc that
was founded in 1975 the United tates Congress to regulate the campaign nance legislation in the United
tates.
Introduction
Campaign Finance Numers
In 2008—the last presidential election ear—candidates for o�ce, political parties, and independent groups spent a total of
$5.3 illion on federal elections. The amount spent on the presidential race alone was $2.4 illion, and over $1 illion of that
was spent the campaigns of the two major candidates: arack Oama spent $730 million in his election campaign, and
John McCain spent $333 million. In the 2010 midterm election ccle, candidates for o�ce, political parties, and independent
groups spent a total of $3.6 illion on federal elections. The average winner of a seat in the House of Representatives spent
$1.4 million on his or her campaign. The average winner of a enate seat spent $9.8 million.
Pulic nancing of campaigns
At the federal level, pulic funding is limited to susidies for presidential campaigns. This includes (1) a “matching” program
for the rst $250 of each individual contriution during the primar campaign, (2) nancing the major parties’ national
nominating conventions, and (3) funding the major part nominees’ general election campaigns.
To receive susidies in the primar, candidates must qualif privatel raising $5000 each in at least 20 states. During the
primaries, in exchange for agreeing to limit his or her spending according to a statutor formula, eligile candidates receive
matching paments for the rst $250 of each individual contriution (up to half of the spending limit). refusing matching
funds, candidates are free to spend as much mone as the can raise privatel.
From the inception of this program in 1976 through 1992, almost all candidates who could qualif accepted matching funds in
the primar. In 1996 Repulican teve Fores opted out of the program. In 2000, Fores and George W. ush opted out. In
2004 ush and Democrats John Kerr and Howard Dean chose not to take matching funds in the primar. In 2008,
Democrats Hillar Clinton and arack Oama, and Repulicans John McCain, Rud Giuliani, Mitt Romne and Ron Paul
decided not to take primar matching funds. Repulican Tom Tancredo and Democrats Chris Dodd, Joe iden and John
dwards elected to take pulic nancing.
In addition to primar matching funds, the pulic funding program also assists with nancing the major parties’ (and eligile
minor parties’) presidential nominating conventions and funding the major part (and eligile minor part) nominees’ general
election campaigns. The grants for the major parties’ conventions and general election nominees are adjusted each
Presidential election ear to account for increases in the cost of living. In 2012, each major part is entitled to $18.2 million in
pulic funds for their conventions, and the parties’ general election nominees are eligile to receive $91.2 million in pulic
funds. If candidates accept pulic funds, the agree not to raise or spend private funds or to spend more than $50,000 of
their personal resources.
ources of Campaign Funding
Di erent sources of campaign funding help part candidates to raise funds through multiple avenues.
LARNING OJCTIV
Identif the varied sources and roles of mone in campaigns and politics
KY TAKAWAY
Ke Points
Corporations and unions are arred from donating mone directl to candidates or national part committees.
Loing in the United tates descries paid activit in which special interests hire well-connected professional
advocates, often lawers, to argue for speci c legislation in decision-making odies such as the United tates
Congress.
Federal law allows for multiple tpes of Political Action Committees, including connected PACs, nonconnected
PACs, leadership PACs, uper PACs.
A 527 organization is a tpe of American tax-exempt organization named after “ection 527” of the U.. Internal
Revenue Code.
Political part committees ma contriute funds directl to candidates, suject to the speci ed contriution
limits.
Di erent sources of campaign funding help part candidates to raise funds through multiple avenues.
Campaign nance in the United tates is the nancing of electoral campaigns at the federal, state, and local
levels.
Ke Terms
527 organization: A 527 organization is a tpe of American tax-exempt organization named after “ection 527”
of the U.. Internal Revenue Code. Technicall, almost all political committees, including state, local, and federal
candidate committees, traditional political action committees, “uper PACs”, and political parties are “527s. “
loing: Loing (also lo) is the act of attempting to in�uence decisions made o�cials in the
government, most often legislators or memers of regulator agencies.
undlers: undlers are people who can gather contriutions from man individuals in an organization or
communit and present the sum to the campaign. Campaigns often recognize these undlers with honorar
titles and, in some cases, exclusive events featuring the candidate.
ources of Campaign Funding
Di erent sources of campaign funding enale part candidates raise funds through multiple avenues. Campaign nance in
the United tates is the nancing of electoral campaigns at the federal, state, and local levels. At the federal level, campaign
nance law is enacted Congress and enforced the Federal lection Commission (FC), an independent federal agenc.
Although most campaign spending is privatel nanced, pulic nancing is also availale for qualifing candidates for
President of the United tates during oth the primaries and the general election. ligiilit requirements must e met to
qualif for a government susid, and those that accept government funding are usuall suject to spending limits. Federal
law restricts how much individuals and organizations ma contriute to political campaigns, political parties, and other FC-
regulated organizations.
Corporations and unions are arred from donating mone directl to candidates or national part committees. One
consequence of the limitation upon personal contriutions from an one individual is that campaigns seek out ” undlers “—
people who can gather contriutions from man individuals in an organization or communit and present the sum to the
campaign. Campaigns often recognize these undlers with honorar titles and, in some cases, exclusive events featuring the
candidate. Although undling had existed in various forms since the enactment of the FCA, it ecame more structured and
organized in the 2000s, spearheaded the “ush Pioneers” for George W. ush’s 2000 and 2004 presidential campaigns.
During the 2008 campaign, the six leading primar candidates (three Democratic, three Repulican) had listed a total of
nearl two thousand undlers.
Loing and pecial Interests
Loing in the United tates descries paid activit in which special interests hire well-connected professional advocates,
often lawers, to argue for speci c legislation in decision-making odies such as the United tates Congress. It is a highl
controversial phenomenon, often seen in a negative light journalists and the American pulic, and frequentl
misunderstood. While loing is suject to extensive and often complex rules which, if not followed, can lead to penalties
including jail, the activit of loing has een interpreted court rulings as free speech and protected the Constitution.
Ton Podesta, enator Ka and Chip Hagan: Loing depends on cultivating personal relationships over man ears. Photo:
Loist Ton Podesta (left) with enator Ka Hagan (center) and her husand.
pending Outside Organizations
Federal law allows for multiple tpes of Political Action Committees, including connected PACs, nonconnected PACs,
leadership PACs and uper PACs. 501(c)(4) organizations are de ned the IR as “social welfare ” organizations. Unlike
501(c)(3) charitale organizations, the ma also participate in political campaigns and elections, as long as the organization’s
“primar purpose” is the promotion of social welfare and not political advocac. A 527 organization is a tpe of American tax-
exempt organization named after “ection 527” of the U.. Internal Revenue Code. Technicall, almost all political
committees, including state, local, and federal candidate committees, traditional political action committees, “uper PACs”,
and political parties are “527s. ” However, in common practice the term is usuall applied onl to such organizations that are
not regulated under state or federal campaign nance laws ecause the do not “expressl advocate” for the election or
defeat of a candidate or part.
Political part committees ma contriute funds directl to candidates, suject to the speci ed contriution limits. National
and state part committees ma make additional “coordinated expenditures,” suject to limits, to help their nominees in
general elections. National part committees ma also make unlimited “independent expenditures” to support or oppose
federal candidates. However, since 2002, national parties have een prohiited from accepting an funds outside the limits
estalished for elections in the FCA.
PACs and Campaigns
A political action committee is an organization that campaigns for or against political candidates, allot initiatives or
legislation.
LARNING OJCTIV
Analze the role of PACs in federal elections
KY TAKAWAY
Ke Points
At the federal level, an organization ecomes a PAC when it receives or spends more than $1,000 for the
purpose of in�uencing a federal election, according to the Federal lection Campaign Act.
Individuals are limited to contriuting $5,000 per ear to Federal PACs; corporations and unions ma not
contriute directl to federal PACs, ut can pa for the administrative costs.
Federal law allows for two tpes of PACs, connected and non-connected. Most of the 4,600 active, registered
PACs are “connected PACs” estalished usinesses, laor unions, trade groups, or health organizations.
contrast, “non-connected PACs” have an ideological mission.
uper PACs ma not make contriutions to candidate campaigns or parties, ut ma engage in unlimited
political spending independentl of the campaigns. Unlike traditional PACs, the can raise funds from
corporations, unions and other groups, and from individuals, without legal limits.
In 2010, the United tates upreme Court held in “Citizens United v. Federal lection Commission” that it is
legal for corporations and unions to spend from their general treasuries to nance independent expenditures.
Ke Terms
super pacs: uper PACs, o�ciall known as “independent-expenditure onl committees,” ma not make
contriutions to candidate campaigns or parties, ut ma engage in unlimited political spending independentl
of the campaigns. Also unlike traditional PACs, the can raise funds from corporations, unions and other groups,
and individuals—without legal limits.
citizens united: In 2010, the United tates upreme Court held in Citizens United v. Federal lection
Commission that laws prohiiting corporate and union political expenditures were unconstitutional. Citizens
United made it legal for corporations and unions to nance independent expenditures with mone from their
general treasuries. It did not alter the prohiition on direct corporate or union contriutions to federal
campaigns—those are still prohiited.
political action committee: A political action committee (PAC) is an organization in the United tates that
campaigns for or against political candidates, allot initiatives, or legislation.
Introduction
A political action committee (PAC) is an organization in the United tates that campaigns for or against political candidates,
allot initiatives or legislation. At the federal level, an organization ecomes a PAC when it receives or spends more than
$1,000 for the purpose of in�uencing a federal election, according to the Federal lection Campaign Act. At the state level,
an organization ecomes a PAC according to the state’s election laws.
In 2010, the United tates upreme Court held in Citizens United v. Federal lection Commission that laws prohiiting
corporate and union political expenditures were unconstitutional. Citizens United made it legal for corporations and unions
to spend from their general treasuries to nance independent expenditures, ut did not alter the prohiition on direct
corporate or union contriutions to federal campaigns; those are still prohiited.
Histor of PACs in the United tates
In 1947, as part of the Taft-Hartle Act, the U.. Congress prohiited laor unions or corporations from spending mone to
in�uence federal elections, and prohiited laor unions from contriuting to candidate campaigns. Laor unions moved to
work around these limitations estalishing political action committees, to which memers could contriute. In 1971,
Congress passed the Federal lection Campaign Act (FCA). In 1974, Amendments to FCA de ned how a PAC could
operate and estalished the Federal lection Commission (FC) to enforce the nation’s campaign nance laws. The FCA
and the FC’s rules provide for the following: Individuals are limited to contriuting $5,000 per ear to Federal PACs;
corporations and unions ma not contriute directl to federal PACs, ut can pa for the administrative costs of a PAC
a�liated with the speci c corporation or union; Corporate-a�liated PACs ma onl solicit contriutions from executives,
shareholders, and their families.
Categorization of PACs
Federal law allows for two tpes of PACs, connected and non-connected. Most of the 4,600 active, registered PACs are
“connected PACs” estalished usinesses, laor unions, trade groups, or health organizations. These PACs receive and
raise mone from a “restricted class,” generall consisting of managers and shareholders in the case of a corporation and
memers in the case of a union or other interest group. Groups with an ideological mission, single-issue groups, and
memers of Congress and other political leaders ma form “non-connected PACs. ” These organizations ma accept funds
from an individual, connected PAC, or organization.
uper PACs, o�ciall known as “independent-expenditure onl committees,” ma not make contriutions to candidate
campaigns or parties, ut ma engage in unlimited political spending independentl of the campaigns. Also unlike traditional
PACs, the can raise funds from corporations, unions and other groups, and from individuals, without legal limits. uper PACs
ma support particular candidacies. In the 2012 presidential election, super PACs have plaed a major role, spending more
than the candidates’ election campaigns in the Repulican primaries. As of earl April 2012, Restore Our Future—a uper
PAC usuall descried as having een created to help Mitt Romne ‘s presidential campaign—has spent $40 million. In the
2012 election campaign, most of the mone given to super PACs has come not from corporations ut from wealth
individuals. According to data from the Center for Responsive Politics, the top 100 individual super PAC donors in 2011–2012
made up just 3.7% of contriutors, ut accounted for more than 80% of the total mone raised, while less than 0.5% of the
mone given to “the most active uper PACs” was donated pulicl traded corporations.
Mitt Romne: Governor Mitt Romne of Massachusetts was the Repulican candidate for the 2012 presidential election.
PAC acklash
It was generall agreed in the 2012 campaign that the formation of a super PAC and the acceptance of large contriutions
was legal. However, a lingering question was whether super PACs are legal when examined on the asis of how the act.
Two agreed-upon illegal actions were that a super PAC could not accept foreign funds and could not coordinate directl with
a candidate. uper PACs were seen in the press as a possile means of allowing illegal donations from foreign entities –
either individuals or companies – to e disguised. The concept of actions eing illegal, when coordinated with a candidate,
came out, in part, after a super PAC named American Crossroads requested permission to communicate to their favored
candidate on an aove-oard asis.
International Comparison and Response
Citizens United v. Federal lection Commission
The Citizens United case held that it was unconstitutional to an campaign nancial contriutions corporations,
associations and unions.
LARNING OJCTIV
Analze the signi cance of the upreme Court’s decision in Citizens United v. Federal lection Commission for campaign
nance reform
KY TAKAWAY
Ke Points
Citizens United v. Federal lection Commission was a landmark United tates upreme Court case in 2010 in
which the court held that the First Amendment prohiited the government from restricting independent political
expenditures corporations and unions.
The upreme Court held that it was unconstitutional to an free speech through the limitation of independent
communications corporations, associations, and unions. This ruling was frequentl interpreted as permitting
corporate corporations and unions to donate to political campaigns.
Citizens United has often een credited for the creation of “super PACs,” political action committees which
make no contriutions to candidates or parties and so can accept unlimited contriutions from individuals,
corporations, and unions.
Ke Terms
Citizens United v. Federal lection Commission: Citizens United v. Federal lection Commission was a
landmark United tates upreme Court case in 2010 in which the court held that the First Amendment
prohiited the government from restricting independent political expenditures corporations and unions.
super pacs: Political action committees, which make no contriutions to candidates or parties, and so can
accept unlimited contriutions from individuals, corporations, and unions.
Introduction
Citizens United v. Federal lection Commission was a landmark United tates upreme Court case in 2010 in which the court
held that the First Amendment prohiited the government from restricting independent political expenditures
corporations and unions. The nonpro t group Citizens United wanted to air a lm critical of Hillar Clinton and to advertise
the lm during television roadcasts in apparent violation of the 2002 ipartisan Campaign Reform Act. In a 5 to 4 decision,
the court held that portions of CRA violated the First Amendment.
ackground
The ipartisan Campaign Reform Act of 2002 prohiited corporations and unions from using their general treasur to fund
“electioneering communications” within 30 das efore a primar or 60 das efore a general election. During the 2004
presidential campaign, a conservative nonpro t organization named Citizens United led a complaint efore the Federal
lection Commission (FC) charging that advertisements for Michael Moore’s lm, Fahrenheit 9/11, a documentar critical of
the ush administration’s response to the terrorist attacks on eptemer 11, 2001, constituted political advertising and thus
could not e aired within the 30 das efore a primar election or 60 das efore a general election. The FC dismissed the
complaint after nding no evidence that roadcast advertisements for the movie and featuring a candidate within the
proscried time limits had actuall een made.
Opinions of the Court
The upreme Court held in Citizens United that it was unconstitutional to an free speech through the limitation of
independent communications corporations, associations and unions. This ruling was frequentl interpreted as permitting
corporate corporations and unions to donate to political campaigns, or else removing limits on how much a donor can
contriute to a campaign. Justice Kenned’s majorit opinion found that the CRA prohiition of all independent
expenditures corporations and unions violated the First Amendment’s protection of free speech.
Justice Anthon Kenned: Anthon Kenned’s majorit opinion found that the CRA prohiition of all independent expenditures
corporations and unions violated the First Amendment’s protection of free speech.
A dissenting opinion Justice tevens was joined Justice Ginsurg, Justice reer, and Justice otomaor. tevens
concurred in the court’s decision to sustain CRA’s disclosure provisions, ut dissented from the principal holding of the
majorit opinion. The dissent argued that the court’s ruling “threatens to undermine the integrit of elected institutions
across the Nation. The path it has taken to reach its outcome will, I fear, do damage to this institution. ” He wrote: “A
democrac cannot function e ectivel when its constituent memers elieve laws are eing ought and sold. ”
Justice John Paul tevens: John Paul tevens wrote a dissenting opinion, arguing that the Court’s ruling “threatens to undermine the
integrit of elected institutions across the Nation. “
Impact
On Januar 27, 2010, President arack Oama condemned the decision during the 2010 tate of the Union Address, stating
that, “Last week, the upreme Court reversed a centur of law to open the �oodgates for special interests — including
foreign corporations — to spend without limit in our elections. ” Moreover, The New York Times stated in an editorial, “The
upreme Court has handed loists a new weapon. A loist can now tell an elected o�cial: if ou vote wrong, m
compan, laor union or interest group will spend unlimited sums explicitl advertising against our re-election. ” The New
York Times reported that 24 states with laws prohiiting or limiting independent expenditures unions and corporations
would have to change their campaign nance laws ecause of the ruling.
Citizens United v. Federal lection Commission has often een credited for the creation of “super PACs”, political action
committees which make no contriutions to candidates or parties and so can accept unlimited contriutions from individuals,
corporations, and unions. In the 2012 presidential election, super PACs have plaed a major role, spending more than the
candidates’ election campaigns in the Repulican primaries. As of earl April 2012, Restore Our Future—a uper PAC usuall
descried as having een created to help Mitt Romne’s presidential campaign—has spent $40 million.
Campaign Finance Reform
LARNING OJCTIV
Identif major legislative and judicial milestones in campaign nance reform in the United tates
KY TAKAWAY
Ke Points
The Federal lection Campaign Act (FCA) of 1972 required candidates to disclose sources of campaign
contriutions and campaign expenditures. It was amended in 1974 with the introduction of statutor limits on
contriutions, and creation of the Federal lection Commission (FC).
The ipartisan Campaign Reform Act (CRA) of 2002, is the most recent major federal law on campaign
nance, which revised some of the legal limits on expenditures set in 1974, and prohiited unregulated
contriutions to national political parties.
Another method allows the candidates to raise funds from private donors, ut provides matching funds for the
rst chunk of donations. This would e ectivel make small donations more valuale to a campaign, potentiall
leading them to put more e ort into pursuing such donations.
Another method, which supporters call clean mone, clean elections, gives each candidate who chooses to
participate a certain, set amount of mone. In order to qualif for this mone, the candidates must collect a
speci ed numer of signatures and small (usuall $5) contriutions.
Ke Terms
federal election campaign act: The Federal lection Campaign Act of 1971 is a United tates federal law which
increased disclosure of contriutions for federal campaigns. It was amended in 1974 to place legal limits on the
campaign contriutions.
Introduction
Federal lection Campaign Act
In 1971, Congress passed the Federal lection Campaign Act, requiring road disclosure of campaign nance. In 1974, fueled
pulic reaction to the Watergate candal, Congress passed amendments to the Act estalishing a comprehensive sstem
of regulation and enforcement, including pulic nancing of presidential campaigns and creation of a central enforcement
agenc, the Federal lection Commission. Other provisions included limits on contriutions to campaigns and expenditures
campaigns, individuals, corporations and other political groups. However, in 1976 uckle v. Valeo challenged restrictions
in FCA as unconstitutional violations of free speech. The court struck down, as infringement on free speech, limits on
candidate expenditures and certain other limits on spending.
ipartisan Campaign Reform Act of 2002
Russ Feingold: enator
Russ Feingold from
Wisconsin.
The Congress passed the ipartisan Campaign Reform Act (CRA), also called the McCain-Feingold ill after its chief
sponsors, John McCain and Russ Feingold. The CRA was a mixed ag for those who wanted to remove ig mone from
politics. It eliminated all soft mone donations to the national part committees, ut it also douled the contriution limit of
hard mone, from $1,000 to $2,000 per election ccle, with a uilt-in increase for in�ation. In addition, the ill aimed to curtail
ads non-part organizations anning the use of corporate or union mone to pa for “electioneering communications,”
a term de ned as roadcast advertising that identi es a federal candidate within 30 das of a primar or nominating
convention, or 60 das of a general election.
Current proposals for reform
Another method allows the candidates to raise funds from private donors, ut provides matching funds for the rst chunk of
donations. For instance, the government might “match” the rst $250 of ever donation. This would e ectivel make small
donations more valuale to a campaign, potentiall leading them to put more e ort into pursuing such donations, which are
elieved to have less of a corrupting e ect than larger gifts and enhance the power of less-wealth individuals. uch a
sstem is currentl in place in the U.. presidential primaries.
Another method, which supporters call clean mone, clean elections, gives each candidate who chooses to participate a
certain, set amount of mone. In order to qualif for this mone, the candidates must collect a speci ed numer of signatures
and small (usuall $5) contriutions. The candidates are not allowed to accept outside donations or to use their own
personal mone if the receive this pulic funding. Candidates receive matching funds, up to a limit, when the are outspent
privatel-funded candidates, attacked independent expenditures, or their opponent ene ts from independent
expenditures. This is the primar di erence etween clean mone pulic nancing sstems and the presidential campaign
sstem, which man have called “roken” ecause it provides no extra funds when candidates are attacked 527s or other
independent expenditure groups.
The Federal lection Campaign Act
The Federal lection Campaign Act of 1971 is a United tates federal law which increased disclosure of contriutions for
federal campaigns.
LARNING OJCTIV
Descrie the histor of campaign nance regulation in the twentieth centur
KY TAKAWAY
Ke Points
The Federal lection Commission (FC) is an independent regulator agenc that was founded in 1975 the
United tates Congress to regulate the campaign nance legislation.
arl legislation Congress sought to limit the in�uence of wealth individuals and special interest groups on
the outcome of federal elections, regulate spending in campaigns for federal o�ce, and deter auses
mandating pulic disclosure of campaign nances.
A political action committee ( PAC ) is an organization in the United tates that campaigns for or against
political candidates, allot initiatives, or legislation.
In uckle v. Valeo (1976), the upreme Court upheld a federal law which set limits on campaign contriutions,
ut it also ruled that spending mone to in�uence elections is a form of constitutionall protected free speech,
striking down portions of FCA.
With the uckle v. Valeo decision, the upreme Court also ruled that candidates can give unlimited amounts of
mone to their own campaigns.
Following uckle v. Valeo, the Federal lections Campaign Act was amended in 1976 and 1979 with the goal to
allow parties to spend unlimited amounts of soft mone on activities like increasing voter turnout and
registration. This led to passage of the ipartisan Campaign Reform Act in 2002.
Ke Terms
federal election campaign act: The Federal lection Campaign Act of 1971 is a United tates federal law which
increased disclosure of contriutions for federal campaigns. It was amended in 1974 to place legal limits on the
campaign contriutions.
federal election commission: The Federal lection Commission (FC) is an independent regulator agenc that
was founded in 1975 the United tates Congress to regulate the campaign nance legislation in the United
tates.
political action committee: A political action committee (PAC) is an organization in the United tates that
campaigns for or against political candidates, allot initiatives, or legislation.
Introduction
Federal lections Commission: eal of the United tates Federal
lection Commission.
The Federal lection Campaign Act of 1971 is a United tates federal law which increased disclosure of contriutions for
federal campaigns. It was amended in 1974 to place legal limits on the campaign contriutions. The amendment also created
the Federal lection Commission (FC), an independent agenc responsile for regulating campaign nance legislation. The
FC descries its duties as “to disclose campaign nance information, to enforce the provisions of the law such as the limits
and prohiitions on contriutions, and to oversee the pulic funding of Presidential elections.”
Histor
As earl as 1905, President Theodore Roosevelt asserted the need for campaign nance reform and called for legislation to
an corporate contriutions for political purposes. In response, the United tates Congress enacted the Tillman Act of 1907,
named for its sponsor enator enjamin Tillman. This act anned corporate contriutions. Further regulation followed with
the Federal Corrupt Practices Act enacted in 1910 with susequent amendments in 1910 and 1925, the Hatch Act, the mith-
Connall Act of 1943, and the Taft-Hartle Act in 1947. These acts sought to:
Limit the in�uence of wealth individuals and special interest groups on the outcome of federal elections.
Regulate spending in campaigns for federal o�ce.
Deter auses mandating pulic disclosure of campaign nances.
In 1971, Congress consolidated earlier reform e orts in the Federal lection Campaign Act (FCA), instituting more stringent
disclosure requirements for federal candidates, political parties and political action committees. A political action
committee(PAC) is an organization in the United tates that campaigns for or against political candidates, allot initiatives, or
legislation. According to the FCA, an organization ecomes a PAC when it receives or spends more than $1,000 for the
purpose of in�uencing a federal election. Without a central administrative authorit, campaign nance laws were di�cult to
enforce.
Pulic susidies for federal elections, originall proposed President Roosevelt in 1907, egan to take shape as part of
FCA. Congress estalished the income tax checko to provide nancing for Presidential general election campaigns and
national part conventions. Amendments to the Internal Revenue Code in 1974 estalished the matching fund program for
Presidential primar campaigns. Following reports of serious nancial auses in the 1972 Presidential campaign, Congress
amended the FCA in 1974 to set limits on contriutions individuals, political parties, and PACs. The 1974 amendments
also estalished the Federal lection Commission (FC) to enforce the law, facilitate disclosure, and administer the pulic
funding program. The FC opened its doors in 1975 and administered the rst pulicl funded Presidential election in 1976.
uckle v. Valeo
In uckle v. Valeo (1976), the upreme Court struck down or narrowed several provisions of the 1974 amendments to FCA,
including limits on spending and limits on the amount of mone a candidate could donate to his or her own campaign. The
court upheld a federal law which set limits on campaign contriutions, ut it also ruled that spending mone to in�uence
elections is a form of constitutionall protected free speech, striking down portions of the law. The court also ruled
candidates can give unlimited amounts of mone to their own campaigns.
Further Legislation
Following uckle v. Valeo, FCA was amended again in 1976 and 1979. The aim of these amendments was to allow parties
to spend unlimited amounts of hard mone on activities like increasing voter turnout and registration. In 1979, the
Commission ruled that political parties could spend unregulated or “soft” mone for non-federal administrative and part
uilding activities. Later, this mone was used for candidate related issue ads, leading to a sustantial increase in soft mone
contriutions and expenditures in elections. The increase of soft mone created political pressures that led to passage of the
ipartisan Campaign Reform Act (CRA). The CRA anned soft mone expenditure parties. ome of the legal limits on
giving of “hard mone” were also changed in CRA.
The ipartisan Campaign Reform Act of 2002
The ipartisan Campaign Reform Act of 2002 is a United tates federal law that regulates the nancing of political
campaigns.
LARNING OJCTIV
Analze the histor of legal challenges to campaign nance reform legislation
KY TAKAWAY
Ke Points
The Act was designed to address two issues: the increased role of soft mone in campaign nancing, and the
proliferation of issue advocac ads.
oft mone refers to “non-federal mone” that corporations, unions and individuals contriute to political
parties to in�uence state or local elections.
Provisions of the legislation were challenged as unconstitutional a group of plainti s led then– enate
Majorit Whip Mitch McConnell, a long-time opponent of the ill.
“McConnell v. Federal lection Commission” is a case in which the United tates upreme Court upheld the
constitutionalit of most of the ipartisan Campaign Reform Act of 2002 (CRA).
The impact of CRA was felt nationall during the 2004 elections. One impact was that all campaign
advertisements included a veral statement to the e ect of “I’m ( candidate ‘s name) and I approve this
message.
Ke Terms
ipartisan campaign reform act: The ipartisan Campaign Reform Act of 2002 is a United tates federal law
amending the Federal lection Campaign Act of 1971 regulating the nancing of political campaigns.
soft mone: oft mone refers to “non-federal mone” that corporations, unions and individuals contriute to
political parties to in�uence state or local elections.
mcconnell v. federal election commission: In McConnell v. Federal lection Commission, the United tates
upreme Court upheld the constitutionalit of most of the ipartisan Campaign Reform Act of 2002 (CRA).
Introduction
The ipartisan Campaign Reform Act of 2002 is a United tates federal law amending the Federal lection Campaign Act of
1971 regulating the nancing of political campaigns. Its chief sponsors were enators Russ Feingold (, D-WI) and John McCain
(, R-AZ). The law ecame e ective on Novemer 6, 2002, with the new legal limits going into e ect on Januar 1, 2003.
Although the legislation is known as “McCain–Feingold,” the enate version is not the ill that ecame law. Instead, the
companion legislation introduced Rep. Chris has (R-CT),H.R. 2356, is the version that ecame law. has–Meehan was
originall introduced as H.R. 380.
2008 Repulican Part Presidential Candidate John McCain: enator John McCain
from Arizona.
Russ Feingold: enator Russ Feingold from Wisconsin.
The Act addresses the increased role of soft mone in campaign nancing prohiiting national political part committees
from raising or spending funds not suject to federal limits. oft mone refers to “non-federal mone” that corporations,
unions and individuals contriute to political parties to in�uence state or local elections. The Act also addresses proliferation
of issue advocac ads, de ning as “electioneering communications” roadcast ads that name a federal candidate within 30
das of a primar or caucus or 60 das of a general election. An such ad paid for a corporation or a non-pro t
organizations is also prohiited.
In June 2003, the D.C. Circuit issued a ruling on the constitutionalit of the law, ut the ruling never took e ect as the case
was immediatel appealed to the U.. upreme Court.
Mitch McConnell: O�cial portrait of United
tates enator Mitch McConnell (R-KY)
Legal Disputes
Provisions of the legislation were challenged as unconstitutional a group of plainti s led then–enate Majorit
WhipMitch McConnell. President ush signed the law despite “reservations aout the constitutionalit of the road an on
issue advertising. ” ush appeared to expect that the upreme Court would overturn some of its ke provisions. However, in
Decemer 2003, the upreme Court upheld most of the legislation in McConnell v. Federal lection Commission.
In McConnell v. Federal lection Commission, the United tates upreme Court upheld the constitutionalit of most of the
ipartisan Campaign Reform Act of 2002 (CRA). The upreme Court heard oral arguments in a special session on
eptemer 8, 2003. On Decemer 10, 2003, it issued a complicated decision that upheld the ke provisions of McCain-
Feingold. These included “electioneering communication” provisions placing restrictions on using corporate and union
treasur funds to disseminate roadcast ads identifing a federal candidate within 30 das of a primar or 60 das of a
general election) The court also upheld the “soft mone” an prohiiting the raising or use of these funds in federal
elections.
Impact and Overturn
The impact of CRA was felt nationall during the 2004 elections. One immediatel recognizale impact was the so-called
“tand Your Ad” provision. The provision requires all U.. political candidates and parties to identif themselves and state
that the have approved a particular communication, i.e. “I’m (a candidate) and I approve this message. ”
In Federal lection Commission v. Wisconsin Right to Life, Inc., the upreme Court ruled that the organizations engaged in
genuine discussion of issues were entitled to a road, “as applied” exemption from the electioneering communications
provisions of CRA appling to naming a candidate efore an election or primar. Oservers argue that the Court’s
exemption e ectivel nulli es those provisions of the Act, ut the full impact of Wisconsin Right to Life remains to e seen.
Campaign Financing
LARNING OJCTIV
Descrie the nature of and uses for campaign nance in the United tates
KY TAKAWAY
Ke Points
At the federal level, campaign nance law is enacted Congress and enforced the Federal lection
Commission (FC), an independent federal agenc.
Political nance refers to all funds that are raised and spent for political purposes. This includes all political
contests for voting citizens, especiall the election campaigns for various pulic o�ces.
Political expenses can e caused election campaigns or contests for nomination or re-selection of
parliamentar candidates.
Ke Terms
political nance: Political nance covers all funds that are raised and spent for political purposes. uch
purposes include all political contests for voting citizens, especiall the election campaigns for various pulic
o�ces that are run parties and candidates.
grassroots fundraising: Grassroots fundraising is a method of fundraising used or for political candidates,
which has grown in popularit with the emergence of the Internet and its use U presidential candidates like
Howard Dean and Ron Paul.
Introduction
Political Finance
Political nance refers to all funds that are raised and spent for political purposes. This includes all political contests for
voting citizens, especiall the election campaigns for various pulic o�ces. Modern democracies operate a variet of
permanent part organizations. For example, in the United tates this includes the Democratic National Committee and the
Repulican National Committee. Political expenses can include:
lection campaigns run candidates, candidate committees, interest groups or political parties
Contests for nomination or re-selection of parliamentar candidates
Training activities for part activists, o�ceholders or candidates
orts to educate citizens with regard to popular initiatives, allot issues or referendums.
Grassroots fundraising is a method of fundraising used or for political candidates. This method has grown in popularit
with the emergence of the Internet and its use U presidential candidates like Howard Dean and Ron Paul. Grassroots
fundraising is a wa of nancing campaigns for candidates who don’t have signi cant media exposure or candidates who are
in opposition to the powerful lo groups. It often involves moilizing grassroots support to meet a speci c fundraising
goal, or it sets a speci c da for grassroots supporters to donate to the campaign.
Ron Paul: Ron Paul is a congressman from Texas who emplos the method of grassroots fundraising.
Previous Next
(https://courses.lumenlearning.com/oundless- (https://courses.lumenlear
politicalscience/chapter/recent- politicalscience/chapter/vo
elections/) as-political-
participation/)