Soft money

Definition

Soft money refers to unregulated funds raised by political parties for purposes such as party-building activities and grassroots campaigning, without being subject to federal limits on contributions. Unlike hard money, which is directly contributed to a candidate's campaign and is strictly regulated, soft money allows parties to support candidates indirectly, leading to increased spending in elections and potential influence on political communication strategies.

5 Must Know Facts For Your Next Test

1. Soft money played a significant role in U.S. elections before the enactment of the BCRA in 2002, allowing parties to raise unlimited funds for non-candidate-specific activities.
2. The introduction of the BCRA aimed to curb the influence of soft money by banning its use for federal elections, shifting focus back to hard money contributions.
3. While soft money cannot be used directly for candidate campaigns, it can be utilized for activities like voter registration drives, party advertisements, and issue advocacy.
4. The loophole in the law regarding state and local parties allowed them to continue raising soft money for certain activities, despite federal restrictions.
5. The rise of Super PACs after the Citizens United v. FEC decision in 2010 has led to a new landscape where independent expenditure-only committees can raise unlimited funds, echoing some characteristics of soft money.

Review Questions

• How does soft money differ from hard money in terms of regulation and use in political campaigns?
  • Soft money is unregulated and can be used by political parties for broader activities like grassroots campaigning, whereas hard money is strictly regulated with limits on contributions directly to candidates. The difference lies in how these funds can be allocated; soft money supports party-building efforts that do not directly endorse a candidate, while hard money is tied specifically to campaign finance for individual candidates.
• Evaluate the impact of the Bipartisan Campaign Reform Act on the use of soft money in U.S. elections.
  • The Bipartisan Campaign Reform Act significantly limited the influence of soft money in U.S. elections by prohibiting national political parties from raising or spending such funds for federal election activities. This legislation aimed to reduce corruption and increase transparency by shifting funding back toward regulated hard money contributions. However, it also led to the emergence of new fundraising strategies and loopholes that continue to affect campaign finance today.
• Assess how the development of Super PACs has transformed the role of soft money in political communication since the Citizens United v. FEC decision.
  • The Citizens United v. FEC decision paved the way for the creation of Super PACs, which can raise unlimited funds for independent expenditures that advocate for or against candidates. This shift echoes some aspects of soft money since it allows substantial financial resources to flow into elections without direct coordination with candidates. The result has been an increased influence of wealthy individuals and organizations on political communication strategies, potentially overshadowing traditional party structures that previously relied on soft money.

Related terms

hard money: Hard money refers to regulated contributions that are directly given to a candidate's campaign, subject to federal contribution limits and reporting requirements.

PAC (Political Action Committee): A PAC is an organization that raises and spends money to elect or defeat candidates, often collecting contributions from members and distributing funds to campaigns, with both hard and soft money components.

BCRA (Bipartisan Campaign Reform Act): The BCRA is a federal law enacted in 2002 aimed at regulating the financing of political campaigns, which notably restricted the use of soft money by national political parties.