Campaign Finance in U.S. Politics

Introduction

• Topic: Campaign finance in national political campaigns
• Importance: Understanding how finance affects elections and free speech

Historical Background

Federal Election Campaign Act (FECA) 1974

• Created the Federal Election Commission (FEC)
• Established limits on:
  • How much an individual could contribute to a candidate
  • How much a candidate could spend on their campaign

Buckley v. Valeo (1976)

• Supreme Court case addressing campaign finance limits
• Key Points:
  • Spending money = free speech under the First Amendment
  • Upheld limits on individual contributions to protect free and fair elections
  • Struck down limits on campaign spending as a violation of free speech

Campaign Finance Loopholes

Hard Money vs. Soft Money

• Hard Money: Direct contributions to a candidate, regulated by law
• Soft Money: Contributions to parties or interest groups, not directly limited by campaign finance laws

Bipartisan Campaign Reform Act (BCRA) 2002

• Increased hard money limits
• Regulated and increased transparency of soft money
• Introduced "Stand By Your Ad" provision

Citizens United v. FEC (2010)

• Challenged BCRA’s limits on corporate and individual contributions
• Supreme Court ruled:
  • Limits on contributions by individuals/corporations were unconstitutional
  • Corporate funding of ads is protected speech under the First Amendment
• Impact: Increased influence of wealthy individuals/corporations in politics

Political Action Committees (PACs)

• Connected PACs: Formed by corporations/labor unions; can only collect from members
• Non-Connected PACs: Formed around specific interests; can collect from the public
• Super PACs: Unlimited fundraising, cannot coordinate directly with candidates

Conclusion

• Campaign finance remains a contentious issue
• Debate over the influence of money on democracy and free speech continues

Study Tips

• Review key cases: Buckley v. Valeo and Citizens United v. FEC
• Understand differences between hard money and soft money
• Familiarize with types of PACs and their roles in elections

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