Campaign finance laws shape how money flows in politics. From the Federal Election Campaign Act to Citizens United, these regulations aim to balance free speech with preventing corruption.
The Federal Election Commission enforces these laws, but faces challenges. Dark money, coordination between campaigns and outside groups, and digital advertising create loopholes. Court decisions have also reshaped the landscape of political spending.
Federal Campaign Finance Laws and Regulations
Key campaign finance laws
- Federal Election Campaign Act (FECA) of 1971 established disclosure requirements for federal candidates, parties, and PACs, set limits on contributions to federal candidates and parties
- Bipartisan Campaign Reform Act (BCRA) of 2002 banned soft money contributions to national political parties, restricted issue advocacy ads (electioneering communications)
- State-level regulations vary by state, often include contribution limits and disclosure requirements (California's Political Reform Act)
- Public financing systems include Presidential Election Campaign Fund and state-level programs in some jurisdictions (Maine Clean Election Act)
Role of Federal Election Commission
- Independent regulatory agency oversees federal campaign finance law
- Responsibilities include disclosure of campaign finance information, enforcing limits and prohibitions on contributions, overseeing public funding of presidential elections
- Composition consists of six commissioners, no more than three from one political party
- Enforcement process investigates alleged violations, can issue fines for infractions, provides advisory opinions on campaign finance issues
Impact and Challenges of Campaign Finance Regulations
Supreme Court decisions on campaign finance
- Buckley v. Valeo (1976) upheld contribution limits, struck down spending limits as unconstitutional
- Citizens United v. FEC (2010) allowed unlimited independent expenditures by corporations and unions, led to creation of Super PACs
- McCutcheon v. FEC (2014) eliminated aggregate contribution limits
- SpeechNow.org v. FEC (2010) paved way for Super PACs by allowing unlimited contributions to independent expenditure groups
Limitations in campaign finance laws
- Dark money spending by 501(c)(4) social welfare organizations and 501(c)(6) trade associations lacks donor disclosure requirements
- Coordination between campaigns and outside groups difficult to prove and enforce
- Super PACs can raise and spend unlimited amounts, must remain independent from candidates
- Foreign influence challenges in tracking foreign money in elections
- Digital advertising lacks comprehensive regulations for online political ads
- Self-funding candidates not subject to contribution limits
- Bundling aggregates contributions from multiple donors
- Joint fundraising committees allow for higher contribution limits