Financing of Federal Campaigns in the US
The financing of federal campaigns in the US is an important and complicated topic. Every four years, hundreds of candidates compete for the right to serve as leaders of the United States of America. To do so, these candidates must raise money to help fund their campaigns. The money raised is used for advertising, staff, and events- all of which are essential components of any successful campaign. This article will provide an overview of the history of financing of federal campaigns in the US and discuss how financing has shaped the electoral process over time.
Early History
When the first federal election was held in the US in 1788, the candidates didn’t have any money to fund their campaigns. Instead, they relied on word of mouth and newspapers to spread their message. As the US electoral system began to evolve, fundraising became a critical component of any candidate’s campaign.
Campaign Finance Reform Movement
The campaign finance reform movement began in the early 20th century with the passage of the Tillman Act in 1907. This law was designed to regulate the political activities of corporate entities in the US. It was a response to the issues of misrepresentation and bribery that were plaguing the election process at this time. The Tillman Act prohibited corporations from making donations or contributions to federal candidates or political parties.
The Federal Election Campaign Act of 1971
The most significant piece of campaign finance legislation passed during this period was the Federal Election Campaign Act of 1971 (FECA). FECA was the first federal law to regulate fundraising at the federal level. The law placed limits on how much money individuals could contribute to candidates, and required campaigns to disclose the source of their money. These regulations were designed to give the public more information about the influence of money in elections.
The Invention of PACs
Another form of funding campaigns come in the form of Political Action Committees (PACs). PACs are like Super PACs, but they are limited to supporting only a specific candidate or party. They can raise unlimited funds that they can use to support the candidates of their choice, as long as they are not used to pay for direct electoral activities (e.g., campaigning, media advertising, and voter education activities).
The Bipartisan Campaign Reform Act of 2002
The Bipartisan Campaign Reform Act (BCRA) of 2002 was the first major overhaul of campaign finance laws since the FECA of 1971. It prohibited corporations and unions from using their own resources to fund campaigns and limited how much money individuals could give to candidates and their parties. The most controversial elements of the BCRA were the so-called “soft money” contributions, which were large sums of money from a wealthy donor that could be used to support a candidate without being reported to the Federal Election Commission.
Citizens United & The Impact of Corporate Funding
Citizens United v. FEC is a landmark Supreme Court ruling that overturned a key part of the BCRA of 2002. The ruling held that the government could not limit political spending by corporations and unions. This decision led to a surge in corporate spending on political campaigns, with hundreds of millions of dollars being spent on election campaigns in 2015 and 2016.
The Influence of Dark Money
Dark money is a term used in politics to refer to donations from anonymous sources, typically corporations or other wealthy individuals. Dark money has become increasingly popular in recent years, with special interest groups offering large sums of money to support a candidate or party. The amount of dark money in US politics has been steadily increasing since Citizens United, and it is estimated to have reached more than $1 billion in 2016.
Modern Campaign Finance Laws
The most recent legislation to influence campaign finance laws is the Disclosure and Transparency Reform Act of 2018. This law requires candidates and political PACs to disclose the source of their funds and the amounts contributed to each specific candidate or party. It also requires publicly traded companies to disclose any political donations made by their shareholders or executives.
The financing of federal campaigns in the US has evolved significantly over the past two centuries. From relying on word of mouth and newspapers to large corporate donors, the process of financing campaigns has changed drastically. Campaign finance laws have been established to ensure that the process is fair and transparent, but the role of money and special interests in US politics continues to be an issue of debate.
