1.4 Political Action Committees

Political Action Committees (PACs)

Groups that raise funds for favored candidates.

Explosive growth of PACs

Increase from 600 PACs in 1974 to over 4600, with around 40% supported by corporations.

FECA of 1974

Legislation that established limits on individual contributions and the structure for PAC contributions.

Individual contribution limits

Individuals could contribute up to $1000 (now $2900 as of 2020) to candidates.

PAC contribution limits

PACs can contribute 5 times what an individual can contribute, with no total limit.

Incumbency influence

In 2008, PACs gave $305 million to incumbents and only $49 million to challengers.

PAC money in congressional campaigns

PAC money comprises a higher percentage of funds for congressional campaigns than presidential campaigns.

Who forms PACs?

Approximately 50% are corporations, 25% ideological organizations, 15% professional/trade/health associations, 10% labor unions.

Factors influencing PAC contributions

Includes incumbency, shared philosophy, granting access, positions of special influence, and importance to the PAC.

Upper class representation in PACs

Overrepresentation of upper and upper-middle classes, underrepresentation of the poor.