1. Sources of Campaign Money Presidential Primaries Part private, part public money Federal matching funds for all individuals’ donations of $250 or less (incentive to raise money from small donors) Governmental lump-sum grants to parties to help pay convention costs

2. Sources of Campaign Money Presidential General Elections All public money (usually) Nominee eligible for $20 million + the cost of living adjustment, and can spend $50,000 of his/her own personal funds (about $85 million available for each candidate in 2008) Barack Obama the first major candidate to drop out of the modern campaign financing system since its creation in 1976 (essentially had no spending limits)

3. Sources of Campaign Money Congressional Elections Mostly private money $2000 maximum for individual donors $5000 limits for PACs Oooo….Pretty!

4. Campaign Finance Rules Watergate brought about the 1973 federal campaign reform law and the creation of the Federal Election Commission (FEC)

5. 1973 Reform Law Limit individual donations to $1000 per candidate per elections Reaffirmed ban on corporate and union donations in place since 1925 Allowed for creation of PACs to raise money for corporations, unions, etc. Need at least 50 voluntary members Have to give to at least 5 federal candidates Limited to giving $5000 per election per candidate, or no more than $15,000 per year to any political party Created public funding for presidential campaigns

6. Problems with Reform Law Challenged in the Supreme Court as a First Amendment violation, but mostly upheld in Buckley v. Valeo Independent expenditures Soft money

7. New Campaign Finance Law Following 2000 election, there was a desire to reform finance law 2002 - Bipartisan Campaign Finance Reform Act (McCain- Feingold Law) Banned soft money contributions Raised limit on individual donations to $2000 per candidate per election Restricted independent expenditures

8. Problems with the Law Challenged in court as restriction of free speech, but Supreme Court upheld almost the entire law (McConnell v. Federal Election Commission) 527 Organizations Can spend money on politics as long as they do not coordinate with a candidate or lobby directly for that person Essentially the same effect as soft money

9. So what impact does this $$$ have? Presidential general elections – money has almost no impact Other issues take precedence Congressional elections – money often has a decisive effect