Campaign Finance Reform

Federal Election Campaign Act (1974)

FEC createdContributions disclosed to FECLimit on campaign contributionsPublic financing of presidential

campaignCampaign spending limited

Buckley v. Valeo Challenged Fed. Election Campaign Act

(1974) SC – requirement that candidates report all

contributions is OK “advocacy ad” by a PAC was considered a

contribution limit amount that candidates can spend on

their own campaigns is a violation of free speech

“Money is speech!”

Hard vs. Soft MoneyHard $ -- contributed directly

to campaigns; subject to limitsSoft $ (pre-2002) – contributed

to party for “party building activities”; no limits

Changes to the Law In 2002, Congress passes Bipartisan

Campaign Reform Act (McCain-Feingold) Before the law, soft $ was unlimited and

hard $ contributions limited to $1000. BCRA increased max. contribution to

$2000. Outlawed soft $ donations Outlawed donations from corporations

and unions

New Loopholes

527 organizations and Super PACs

Ex: Swift Boat Vets in 2004Public funding for President

What are the arguments for and against campaign finance reform?