Money and Elections

Strategies to prevent abuse in elections Impose limits on giving, receiving, and spending political money Requiring public disclosure of the sources of and uses of political money Giving governmental subsidies to Presidential candidates, campaigns, and parties including incentive arrangements

Types of Money- soft money Funds given to state and local parties by political parties, individuals, or PACs for voter registration drives and party mailings Federal law does not require disclosure of its source or use- has no limits Although soft money is supposed to benefit only state and local parties, it influences federal election Mostly illegal now Purchased access to elected officials influence and the possibility or appearance of corruption

Types of money Hard money laws: Search for Federal Election Campaign Finance Law- it’s a brochure

Types of money- hard money Direct contributions to a political candidate Can only come from an individual or a PAC Follows the limits set by the FEC

Federal Election Campaign Act (FECA) Established fund for public donations to presidential campaigns (not done for Congressional campaigns) Set up rules for the disclosure of all campaign financing and spending information Established the Federal Election Commission to regulate campaign financing

Post Watergate Reforms 1974 amendments to FECA established realistic limits on contributions and spending, tightened disclosure, and provided for public financing of presidential campaigns The law had to be amended after the 1976 Buckley v. Valeo decision However, basic outline of the act remained unchanged

Buckley v. Valeo SC case that challenged most of the provisions in the Federal Election Campaign Act, as amended in SC upheld the law's requirements that candidates, parties, PACs and groups engaging in express advocacy disclose their fund-raising and spending. SC also affirmed voluntary public financing and limits on individual contributions. SC struck down, as infringements on free speech, limits on campaign spending (unless the candidate accepts public financing), limits on contributions by candidates to their own campaigns (unless publicly financed)

Bipartisan Campaign Act Enacted in 2002, BCRA constituted the first major revision of campaign finance law in more than 25 years Bans unlimited soft money contributions to the national political parties and prohibits federal officeholders from soliciting soft money 2004 McCain Feingold Act limited funds to $2000 in Presidential elections and provided for inflation rises and this act banned soft money

Presidential Election Campaign fund Money from the $3 federal income tax check-off goes into this fund and its then distributed to qualified candidates to subsidize their presidential campaigns About 10% taxpayers do this Matching funds- contributions of up to $250 are matched from the Presidential Election Campaign Fund to candidates for the presidential nomination who qualify and agree to meet the contributions such as limits to their own spending Started in all took it; G.W. Bush did not and since then most have not (see page 269)

Groups 527 groups are not subject to contribution restrictions and do not seek the election of a specific candidate Must be reported (Anti-Kerry Groups, Swift Boat Veterans for the Truth, MoveOn.org) 501 (c) groups do not report their contributions and can receive unlimited contributions but cannot spend more than half their funds on political activities

PAC’s Labor unions and corporations were forbidden to donate money to campaigns so they formed PAC’s to make contributions to candidates Are regulated by the FEC