Campaign Financing

Campaign finance may not seem like a political speech issue, but it has been argued repeatedly before the Supreme Court that the ability to legally fund a candidate is a protected form of free speech.

In 1971, Congress passed the Federal Election Campaign Act (FECA) to prohibit corporations and unions from making financial contributions directly to federal candidates or on their behalf. Four years later, Congress established the Federal Election Commission (FEC), an independent, regulatory agency, to enforce FECA and oversee public funding of presidential elections.

In 1990’s Austin vs. Michigan Chamber of Commerce and 2003’s McConnell vs. FEC, the Court ruled that restrictions on corporate political speech are constitutional, as long as they are narrowly tailored to serve a compelling government interest.

FECA did not restrict “soft money” contributions — funding given for get-out-the-vote efforts and other activities not directly related to a candidate — and as a result, soft money contributions to political parties had ballooned out of control by 2000, and many believed that hundreds of millions in indirect funding was being used to influence federal politics.

In response, Congress passed the Bipartisan Campaign Reform Act (BCRA) in 2002, which amended FECA and prohibited corporations and unions from making soft money contributions to national political parties — but not state parties — and from funding broadcast political advertisements for federal candidates within 60 days of an election. Since then, corporations and unions have increasingly funded candidates through political action committees (PACs) and 527 groups.

Congress and the courts continue to try to find a balance between preventing political corruption and protecting the right to free political speech. Many states have enacted campaign finance rules of their own, and some are exploring initiatives to provide public financing of state campaigns. Campaign finance reform will likely be an important issue for any candidate, regardless of party affiliation.

The text of campaign finance regulations can be found on the FEC’s website under the “Law and Regulations” heading (http://www.fec.gov/). Although some of the site’s content is quite dense and technical, it offers a user-friendly “Quick Answers” section that covers topics ranging from how to find out who donated to your congressional representatives to the penalties for violating federal election laws.

In 2003, the Congressional Research Service prepared for Congress a report entitled “Campaign Finance.” Along with historical and legal analysis of campaign finance, the 18-page report discusses weaknesses in the current laws and offers policy proposals. The report is not exhaustive, but it is likely helpful for new candidates seeking to quickly familiarize themselves with campaign finance law.

Members of the Brennan Center’s Campaign Finance Project at NYU School of Law argue that campaign finance reform may be done without hampering free political speech, and that reform will actually enhance the political participation of many Americans. Along with advocacy work, the Brennan Center helps design and implement public financing initiatives at the federal, state, and local levels. On the home page of the Brennan Center’s website, click on “Campaign Finance Reform” to access a detailed analysis of BCRA and McConnell vs. FEC, along with other current court cases involving campaign finance reform. This section also offers a guide to drafting campaign finance law at the state and local levels.

The Campaign Finance Information Center is geared toward journalists covering campaign money trails. Although some of the information is journalist-specific, many of the articles and links appeal to anyone interested in learning about campaign financing. Items under the “Federal Contract Data” heading include a list of suggested reading and a link to a database of all individual and PAC contributions made to federal candidates — a helpful tool for assessing an incumbent opponent. Check under the “State Campaign Finance Search” heading to find state-specific information about campaign contributions.

Links

Text of Austin vs. Michigan Chamber of Commerce: http://caselaw.lp.findlaw.com/scripts/getcase.pl?court=US&vol=494&invol=652

Text of McConnell vs. Federal Election Commission: http://www.law.cornell.edu/supct/html/02-1674.ZO.html

Federal Election Commission: http://www.fec.gov/

Congressional Research Service Issue Brief for Congress, "Campaign Finance," 2003: http://fpc.state.gov/documents/organization/28105.pdf

Brennan Center’s Campaign Finance Project, NYU School of Law: http://www.brennancenter.org/index.asp

Campaign Finance Information Center: http://www.campaignfinance.org/