AP US GOVERNMENT Review CAMPAIGN FINANCE
o Federal Elections Campaign Act (FECA) passed in 1974 – to control campaign costs/donations:
o Federal Election Commission (FEC) established to enforce campaign laws
o Public financing of presidential campaigns – monies come from voluntary $3 contributions by taxpayers on tax returns
§ P candidates can get federal matching funds from federal gov’t, in general election for each contribution of $250 or less – govt doubles all contributions of $250 or less but have to agree to a max. campaign spending limit
§ No $ for independents – only Ds & Rs
§ 2004 first year both candidates declined matching funds
§ 2008 McCain took them, Obama declined (and raised much more $)
§ Note: there are NO federal funds for congressional elections and no limits on how much they can spend
o PACs can give $5,000 per candidate (most active in House elections); no aggregate limit
o Individuals can give $2,600 to a candidate
§ USED to have an aggregate limit of $123,200 BUT …
§ McCutcheon v. FEC decided in 2014 overturned aggregate limits on federal campaign contributions – now there is no aggregate limit – but SCOTUS kept the $2,600 per election limit on how much individuals can give to an individual politician's campaign
o Disclosure rules - candidates must report all contributions & how $ is spent
o PACs advocating civil rights issues have grown the most
o Buckley v. Valeo (1976) – lawsuit challenging FECA.
o SCOTUS upheld FECA’s limits on individual contributions, the disclosure and reporting provisions, and the public financing scheme ---- said that limitations on donations to candidates were constitutional because of the compelling state interest in preventing corruption or the appearance of corruption.
o BUT, the Court also held that portion of FECA limiting how much individual can contribute to his own campaign was an unconstitutional violation of free speech/expression (Perot spent over
$60 million on his ’92 campaign – more than Clinton & Bush combined!)
o Soft money – WAS a loophole in campaign contributions where unlimited $ could go to party’s general fund, not a specific candidate. Funds had to go to political parties for general election activities such as voter registration drives …..not a specific candidate.
o McCain-Feingold Act – BCRA (Bipartisan Campaign Reform Act) of 2002
o prohibits soft money
o corporate/union monies can’t be used to pay for ads of federal candidates within 30 days of a primary or 60 days of a general election
o "stand by your ad" provision - hear candidate’s voice claiming responsibility for the ad and approving its message
o 527 Organizations
o Not regulated by McCain-Feingold (BCRA) or FEC – was a new loophole
o Independent groups that do not “directly seek the election of a particular candidate”
o Unlimited contributions allowed if political messages don’t directly endorse candidates with “vote for” or “vote against”…
o Used to fund issue ads – MoveOn.org; Swift Boat Veterans for Truth
o SuperPacs & Citizens United vs. FEC, 2010
o independent expenditure-only committees
o CAN advocate for or against federal candidates but may NOT be made in cooperation with, or at the request or suggestion of, a candidate, the candidate's campaign or a political party.
o Citizen’s United, 2010 – 5/4 SCOTUS decision that upholds SuperPacs and unlimited political spending by corporations & unions – based on 1st Amendment