QUESTIONS TO CONSIDER Why does money matter? What is it paying for? Where is it coming from? How is it regulated? Does money automatically = victory? Do contributions (special interest donors) = influence?

Where does my money go? It depends! Candidate Candidate specific activities Contributions to other candidates, parties or causes DNC/RNC Federal candidates Allocated nationally State Party Committees Federal, state & local candidates Allocated statewide PACs Support candidates, parties that agree on specific issues 527s Separate campaign

WHERE DOES THE MONEY COME FROM? DIRECT Self funding (HARD MONEY) Unlimited (Buckley v. Valeo) but high risk Public funding (HARD MONEY) Limited/capped Individual contributions (donors) (HARD MONEY) Limited by dollar amount by race PAC contributions (HARD MONEY) IG, unions, businesses Party organization (DNC/RNC) Limited

Overview History of Campaign Finance Regulation Corrupt Practices Acts of 1911 and 1925 Set disclosure requirements for House and Senate Elections Spending limits ($25k for Senate; $5k for House) Ridiculously weak and regularly violated 1971 Federal Election Campaign Act (FECA) 1976: Buckley v. Valeo (1976)

Federal Election Commission Purpose In 1975, Congress created the Federal Election Commission (FEC) to administer and enforce the Federal Election Campaign Act (FECA) the statute that governs the financing of federal elections. The duties of the FEC, which is an independent regulatory agency, are to disclose campaign finance information enforce the provisions of the law such as the limits and prohibitions on contributions, oversee the public funding of Presidential elections.

Various Election Law Federal Election Campaign Act (FECA) 1975 Bipartisan Campaign Reform Act (BCRA) 2002 Major changes under BCRA

CAMPAIGN FINANCE REFORMS Campaigns more open and honest Small donors are encouraged Rich are restricted in direct contributions Records are open to public *YOU CAN’T WIN JUST BECAUSE YOU HAVE THE MOST MONEY BUT…money can buy votes

Buckley v. Valeo Buckley v. Valeo, (1976), was a case in which the Supreme Court of the United States upheld a federal law which set limits on campaign contributions, but ruled that spending money to influence elections is a form of constitutionally protected free speech, and struck down portions of the law. The court also stated candidates can give unlimited amounts of money to their own campaigns.

INDEPENDENT EXPENDITURES a political campaign communication that expressly advocates the election or defeat of a clearly identified candidate that is not made in cooperation, consultation or concert with or at the request or suggestion of a candidate, candidate’s authorized committee or a political party.

McCain Feingold 2002 The Bipartisan Campaign Reform Act (BCRA) of 2002, also known as "McCain-Feingold," after its sponsors, is the most recent major federal law on campaign finance, which revised some of the legal limits of expenditure set in 1974, and prohibited unregulated contributions (called "soft money") to national political parties. ‘Soft money’ also refers to funds spent by independent organizations that do not specifically advocate the election or defeat of candidates, and are not contributed directly to candidate campaigns. Limits PACS Prohibits contributions made from Corporate/Union treasury funds 60 days before an election

Bipartisan Campaign Reform Act (McCain-Feingold 2002) Meant to close loopholes that allowed soft money to flow into campaign committees and to control advertising said to be aimed at issues but actually performing as campaign promotion Challenged in McConnell vs FEC BCRA was confirmed by the S.C.

BCRA Eliminated all soft money contributions to national party committees Increased individual limit from $1,000 to $2,000 with index for inflation ($2,300 in 2008) Banned the use of certain political communications by corporate, union or incorporated non-profit committees within 30 days of primary or convention, or 60 days of general (political communications) Millionaire’s amendment “Stand by your ad” (“I’m Bruce Lunsford and I endorsed this message”)

2004 John Kerry v. “W” Swift Boat Veteran's for Truth, a group that opposed Democratic candidate John Kerry, ran misleading ads questioning Kerry’s heroism during the Vietnam War.

CITIZENS UNITED Citizens United is an organization dedicated to restoring our government to citizens’ control.

Citizens United vs. FEC Overrules MCConnell in part: Overrules the ban on independent expenditures paid for by corporations or unions out of their treasuries 60 days before an election Overturns ban on independent expenditures from corporate and union treasuries "If the First Amendment has any force, it prohibits Congress from fining or jailing citizens, or associations of citizens, for simply engaging in political speech," - Justice Kennedy

SUPER PACS May raise unlimited sums of money from corporations, unions, associations and individuals, then spend unlimited sums to overtly advocate for or against political candidates NOT AFFILIATED WITH CANDIDATE

TRUMP $$$

CLINTON $$$

What you need to know about campaign finance FEC – Federal Election Commission BCRA – Bipartisan Campaign Reform Act Buckley vs. Valeo Citizens United vs. FEC PACS Political Action Committees Groups formed to push soft money and influence campaign 527’s and 501’s Groups created under specific tax codes that do not fall under FECA but engage in political activities and attempt to influence elections A method to avoid regulation Target by BCRA Hard money = Federal money Political donations raised from federally permissible sources within the limits established by BCRA Donated directly to candidates to support campaign Soft money = Nonfederal money Political donations made in such a way as to avoid federal regulations. Unregulated money donated to political parties, not candidates, that go towards party building activities ,such as get out the vote campaigns, and “issue ads” or non-direct candidate ads