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While these laws intended to create transparency in campaign funding, government did not have the power to stop the high levels of money entering elections, and little was done to enforce the laws. In 1971, Congress again tried to fix the situation by passing the
Federal Election Campaign Act (FECA), which outlined how candidates would report all contributions and expenditures related to their campaigns. The FECA also created rules governing the way organizations and companies could contribute to federal campaigns, which allowed for the creation of political action committees.
Scott and Mullen, “Thirty Year Report.” Finally, a 1974 amendment to the act created the Federal Election Commission (FEC), which operates independently of government and enforces the elections laws.
While some portions of the FECA were ruled unconstitutional by the courts in
Buckley v. Valeo (1976), such as limits on personal spending on campaigns by candidates not using federal money, the FEC began enforcing campaign finance laws in 1976.
Buckley v. Valeo , 424 U.S. 1 (1976). Even with the new laws and the FEC, money continued to flow into elections. By using loopholes in the laws, political parties and political action committees donated large sums of money to candidates, and new reforms were soon needed. Senators John McCain (R-AZ) and Russ Feingold (former D-WI) cosponsored the
Bipartisan Campaign Reform Act of 2002 (BCRA), also referred to as the McCain–Feingold Act. McCain–Feingold restricts the amount of money given to political parties, which had become a way for companies and PACs to exert influence. It placed limits on total contributions to political parties, prohibited coordination between candidates and PAC campaigns, and required candidates to include personal endorsements on their political ads. It also limited advertisements run by unions and corporations thirty days before a primary election and sixty days before a general election.
“Bipartisan Campaign Reform Act of 2002,” http://www.fec.gov/pages/bcra/bcra_update.shtml (November 11, 2015); Scott and Mullen, “Thirty Year Report.”
Soon after the passage of the McCain–Feingold Act, the FEC’s enforcement of the law spurred court cases challenging it. The first,
McConnell v. Federal Election Commission (2003), resulted in the Supreme Court’s upholding the act’s restrictions on how candidates and parties could spend campaign contributions. But later court challenges led to the removal of limits on personal spending and ended the ban on ads run by interest groups in the days leading up to an election.
“Court Case Abstracts,” http://www.fec.gov/law/litigation_CCA_W.shtml (November 12, 2015);
Davis v. Federal Election Commission , 554 U.S. 724 (2008). In 2010, the Supreme Court’s ruling on
Citizens United v. Federal Election Commission led to the removal of spending limits on corporations. Justices in the majority argued that the BCRA violated a corporation’s free speech rights.
Citizens United v. FEC , 558 U.S. 310 (2010).
The court ruling also allowed corporations to place unlimited money into
super PACs , or Independent Expenditure-Only Committees. These organizations cannot contribute directly to a candidate, nor can they strategize with a candidate’s campaign. They can, however, raise and spend as much money as they please to support or attack a candidate, including running advertisements and hosting events.
“Citizens United v. Federal Election Commission,” http://www.opensecrets.org/news/reports/citizens_united.php (November 11, 2015); “Independent Expenditure-Only Committees,” http://www.fec.gov/press/press2011/ieoc_alpha.shtml (November 11, 2015). In 2012, the super PAC “Restore Our Future” raised $153 million and spent $142 million supporting conservative candidates, including Mitt Romney. “Priorities USA Action” raised $79 million and spent $65 million supporting liberal candidates, including Barack Obama. The total expenditure by super PACs alone was $609 million in the 2012 election and $345 million in the 2014 congressional elections.
“Super PACs,” https://www.opensecrets.org/pacs/superpacs.php?cycle=2014 (November 11, 2015).
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