1. Campaign Finance Reform

2. Federal Election Campaign Act (1974)  FEC created  Contributions disclosed to FEC  Limit on campaign contributions  Public financing of presidential campaign  Campaign spending limited

3. 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!”

4. Hard vs. Soft Money  Hard $ -- contributed directly to campaigns; subject to limits  Soft $ (pre-2002) – contributed to party for “party building activities”; no limits

5. 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

6. Pre-2002  $1000 max. contribution to individuals  Soft money donations were unlimited

7. BCRA  Increased max. contribution to $2000  Outlawed soft $ donations  Outlawed donations from corporations and unions

8. New Loopholes  527 organizations and Super PACs  Ex: Swift Boat Vets in 2004Swift Boat Vets in 2004  Public funding for President

9. What are the arguments for and against campaign finance reform?