The document discusses campaign financing in the United States. It outlines the history of legislation aimed at regulating campaign contributions and spending, including the Federal Election Campaign Act (FECA) of 1971 and amendments, which established the Federal Election Commission and placed limits on donations. It also discusses the Supreme Court case Buckley v. Valeo, which upheld contribution limits but struck down spending limits. More recent reforms include the Bipartisan Campaign Reform Act of 2002.

1. Section 3 Financing a Campaign Chapter 10 Paying For Election Campaigns

2. OUTLINE Financing a Campaign Raising Money Federal Election Campaign Act Federal Election Committee Limiting Contributions Public Funding PACs and Soft Money Spending on Media A Reluctance to Reform Campaign Reform New Law Upheld and The Future

3. Raising Money It has been so shady in the past, that now there is federal legislation enacted to regulate how and where candidates get money We have seen many changes in these laws over the past few years in an effort to reform the system Namely the FEC and Buckley v. Valeo

4. Federal Election Campaign Act (FECA) An effort to control/regulate campaign financing (est. 1971; amend. 1974, 1976, 1979) What did it do? Required public disclosure of each candidate’s spending Limited the amount of money that individuals or groups could donate directly to a candidate or political party (HARD MONEY) Set up the FEC

5. The FEC Their job is to administer all federal election laws and to monitor campaign spending All contributions to a candidate or political party over 200 dollars needs to be reported to the FEC “ political watchdog”

6. Buckley v. Valeo “ Set the precedent” The Supreme Court decided that it IS constitutional to set limits on campaign contributions bc of its need to keep corruption out of elections. HOWEVER…….

7. C.R.E.A.M!!!! You are allowed to spend as much as you want on the entire campaign (no “cap”) and you can spend as much of your own money as you want!!!!!

9. Public Funding FECA – wanted to give us an opportunity to help these candidates get elected. How? The Presidential Election Campaign Fund Check a box on your Tax Returns…and you can donate three of your dollars to this fund that, if they qualify, can benefit candidates.

10. Public vs. Private Most money comes from Private Sources and not Public (Pres. Camp. Elec. Fund) Examples of Private Sources Individual citizens Corporations Labor unions Interest groups Political Action Committes (PACs)

11. Political Action Committees (PACs) Organizations set up by interest groups specifically to collect money to support favored candidates. Amounts limited by FECA

12. Soft money Political Parties can also raise “soft money” – which is unlimited amounts of money used for general purposes. VOTER REGISTRATION CAMPAIGNS DIRECT MAILINGS According to FECA - This money could come from anyone and anywhere – and there was no limit

13. Spending on Media FECA put no limits on any media spending, TV, print, radio, etc http://www.youtube.com/watch?v=Svbcwx6FZPA http://www.youtube.com/watch?v=p4_ypTOwo_U

14. A Reluctance to Reform Because it was getting sloppy and shady – there was talks of “reform” in Congress…. However, incumbents were reluctant to give up their advantage

15. Campaign Reform In 2002 – Change came…. Congress passed the The Bipartisan Campaign Reform Act (aka the McCain-Feingold Act) A prohibition of national political parties, federal officeholders, and federal candidates from raising soft money

16. The Bipartisan Campaign Reform Act It also put restrictions on Corporations, interest group, and unions running ads for (or against) candidates. Limited Hard Money contributions individual candidate – 2,000 Political Party – 25,000

17. New Law Upheld McConnell v. Federal Elections Committee “ these limits are a violation of my free speech” McCain-Feingold Act - UPHELD Why?Without limits big donors could influence the policy makers – unfair and undemocratic

18. The Future? Candidates need to now focus on a larger amount of smaller donations How do we do that? THE INTERNET Cheap, reaches millions