Campaign Finance Reform, 1974 Created FEC Created Public Funding for Presidential Races Public Funding: Presidential PRIMARY Races Govt. matches small.

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Presentation transcript:

Campaign Finance Reform, 1974 Created FEC Created Public Funding for Presidential Races Public Funding: Presidential PRIMARY Races Govt. matches small contributions (less than $250) from individual donors. Eligibility: Must receive $5,000 in 20 states from small donors ($250 or less). Public Funding: GENERAL Election $84 million; but must stop fundraising AFTER he’s nominated. Outlawed foreign contributions Created restrictions on contributions.

Contribution Restrictions Individual $1,000 to candidate $20,000 to national party PAC (officially registered fundraising interest group). $5,000 to candidate $15,000 to national party No ban on soft money (funds to party: not given DIRECTLY to candidate).

Hard Money Money to candidates. Money to political parties used for candidate-specific electoral activity. FEC limitations. Soft Money Money to political parties. Used for “party-building” purposes. No limitations. Empowered parties.

Uses of Soft Money Voter Registration Drives (“Get out the Vote:” GOTV) Generic Party Advertising Office Expenses Advertisements that didn’t specifically say, “vote for,” or “vote against.” (i.e., campaign signs and certain commercials)

Buckley v. Valeo (1976) Candidates can spend an unlimited amount of their own money. Money=Speech 1992: Ross Perot spent $60 million. Limitations may be placed on donations to others.

McCain-Feingold Act, 2002 (Bipartisan Campaign Reform Act) Ban on soft money Ban on “issue/electioneering ads” 60 days before a general election/30 days before primary. Individual Donor: $2,000 to a candidate $26,700 to a political party PAC contributions stay the same.

527s: Nonprofit, unregulated interest groups (not directly affiliated with the candidate): issue-oriented ads Democrats: 2004 Americans Coming Together: $76 mill. Joint Victory Campaign: $73 mill. Media Fund: $55 mill. Total: $266 million Republicans: 2004 Progress for American Voter Fund: $36 mill. Swift Boat Veterans for Truth: $23 mill. Total: $144 million

Large Individual Donations to 527s Top 15 donors gave $125 million. George Soros (D): $23.5 million Financier and Philanthropist Peter Lewis (D): $23 million Progressive Auto Insurance Bob and Doylene Perry (R): $8 million Texas home-building company Alex Spanos (R): $5 million Owner of San Diego Chargers/Apartment developer

Bundling 1. What is bundling? 2. Who are the bundlers? 3. What incentives do candidates give to bundlers? (give examples) 4. Why are the numbers of bundlers increasing since 2002? 5. Why do some argue that bundling is coercive? 6. Describe the illegal practices mentioned in

PAC Donations and Congress PACs focus donations on House and Senate. 57% of House candidate money 67% of Senate candidate money A little money goes a long way. Donate to: Open seats and Incumbents Able to influence legislators’ vote.