Detailed Campaign Finance Notes

Campaign finance refers to funds raised for promoting candidates, political parties, or policies during various political activities such as elections and referendums.

Federal Election Campaign Act (FECA):
- Enacted in 1972, amended in 1974.
- Established the Federal Election Commission (FEC) in 1975.
- Key amendments:
- Limited individual donations to $1000$ per candidate.
- Reinforced ban on union and corporate donations.
- Set requirements for Political Action Committees (PACs):
  - Must have at least 50 members.
  - Must contribute to at least 5 federal candidates.
  - Limited donations to $5000$ .
- Distinguished between primary and general elections.
Federal Election Commission (FEC):
- Created to administer and enforce FECA.
- Duties include:
- Disclosing campaign finance information.
- Enforcing contribution limits and prohibitions.
- Overseeing public funding of presidential elections, including a $3$ check-off on taxes.

General Rules:
- Candidates can spend unlimited amounts on their own campaigns.
- Contribution limits are constitutional (Buckley v. Valeo, 1976).
- Corporations and unions cannot make direct contributions to candidates but can spend on independent political broadcasts (Citizens United v. FEC, 2010).
Types of Contributions:
- Hard Money: Strict legal limits.
- Soft Money: Unregulated contributions to state party headquarters, banned for national parties (BCRA).
- Currently, contributions to 527s and 501(c)(4)s (advocacy groups) do not have limits and do not need to disclose donors.

Under Buckley ruling, ads not specifically advocating for a candidate are not subject to campaign finance laws (known as issue ads).
Bipartisan Campaign Reform Act (McCain-Feingold, 2002):
- Banned soft money contributions to national parties, allowed at state level.
- Prohibitions on funds for campaign ads mentioning a candidate during critical periods prior to elections.
- Increased individual donation limits to $2700$ .
- Allowed for the creation of 527s to circumvent regulations.

Congressional elections greatly influenced by funding:
- Average expenditure:
- House campaigns exceed $1million$ .
- Senate campaigns exceed $10million$ .
In primary elections, federal matching funds are available for individual donations less than $250$ .
Candidates who do not accept federal funding can bypass spending limits.

Political Action Committees (PACs): Formed by interest groups to collect and donate money to candidates through contributions and advertising.
Super PACs: Can run independent campaigns and are not coordinated with candidates. They can accept unlimited donations but cannot contribute directly to candidates.
- This arose significantly from the Citizens United ruling which intensified the influence of money in politics.
- Example: "shadow campaigns" run by independent committees.

Campaign finance remains a critical and evolving aspect of electoral politics in the U.S., with significant implications on how candidates raise funds and collectively represent political interests. Understanding the intricate rules and structures surrounding financial contributions is crucial for comprehending the electoral landscape in modern America.