Federal Election Campaign Act

From Free net encyclopedia

The Federal Election Campaign Act is an United States federal law passed in 1971 to increase disclosure of contributions for federal campaigns and amended in 1974 to place legal limits on the campaign contributions. The amendment also created the Federal Elections Commission (FEC) in 1975. Some of the legal limits were changed in the Bipartisan Campaign Reform Act of 2001. (See: Campaign finance in the United States for current situation). It was amended again in 1976, in response to the provisons ruled unconstitutional by Buckley v. Valeo and again in 1979 to allow parties to spend unlimited amounts of hard money on activities like increasing voter turnout and registration. At the request of political parties, soft money was allowed by the FECA to be used for non-federal administrative and party building activities. Later, this money was used for candidate specific issue ads and the activities intended for hard money, which led to a huge increase in soft money contributions and expenditure in elections. This created political pressure which allowed the Bipartisan Campaign Reform Act to be passed, banning soft money expenditure by parties.

1 Major provisions
- 1.1 Contribution Limits
2 History
3 See also
4 External links

[edit]

Major provisions

The major provisions of the 1971 Act and the 1974 amendment. Note that some provisions, including legal limits of contributions have been modified by subsquent Act.

Requirement for candidates to disclose sources of campaign contributions and campaign expenditure.
Federal Election Commission created.
Public funding available for Presidential primaries and general elections. Legal limits on campaign expenditure for those that accept public funding.
Legal limits on campaign contributions by individuals and organizations. See table.
Prohibition of campaign contributions directly from:
- Corporations, Labor Organizations and National Banks
- Government Contractors
- Foreign Nationals
- Cash Contributions over $100
- Contributions in the Name of Another

[edit]

Contribution Limits

The FECA places limits on contributions by individuals and groups to candidates, party committees and PACs. The chart below shows how the limits apply to the various participants in federal elections. The legal limits have since been superseded by the Bipartisan Campaign Reform Act.

Source: [1]

	To each candidate or candidate committee per election cycle	To national party committee per calendar year	To any other political committee per calendar	Total per calendar year
Individual may give	$1,000	$20,000	$5,000	$25,000
Multi candidate committee	$5,000	$15,000	$5,000	No limit
Other political Committee may give:	$1,000	$20,000	$5,000	No limit

[edit]

History

As early as 1905, President Theodore Roosevelt asserted the need for campaign finance reform and called for legislation to ban corporate contributions for political purposes. In response, the United States Congress enacted several statutes between 1907 and 1966 which, taken together, sought to:

Limit the disproportionate influence of wealthy individuals and special interest groups on the outcome of federal elections;
Regulate spending in campaigns for federal office; and
Deter abuses by mandating public disclosure of campaign finances.

Public funding of federal elections originally proposed by President Roosevelt in 1907 began to take shape in 1971 when Congress set up the income tax checkoff to provide for the financing of Presidential general election campaigns and national party conventions. Amendments to the Internal Revenue Code in 1974 established the matching fund program for Presidential primary campaigns. In 1971, Congress consolidated its earlier reform efforts in the Federal Election Campaign Act (FECA), instituting more stringent disclosure requirements for federal candidates, political parties and Political action committees (PACs). Still, without a central administrative authority, the campaign finance laws were difficult to enforce.

Following reports of serious financial abuses in the 1972 Presidential campaign, Congress amended the FECA in 1974 to set limits on contributions by individuals, political parties and PACs. The 1974 amendments also established an independent agency, the Federal Election Commission (FEC) to enforce the law, facilitate disclosure and administer the public funding program. The FEC opened its doors in 1975 and administered the first publicly funded Presidential election in 1976.

The Supreme Court struck down two provisions of the 1974 amendments to the Act, namely limits on spending by campaigns and on the amount of money a candidate could donate to his or her own campaign in Buckley v. Valeo (1976).

Congress made further amendments to the FECA in 1976 following those decisions; major amendments were also made in 1979 to streamline the disclosure process and expand the role of political parties.

The 1979 amendments gave rise to a host of consequences, however, allowing political donors to circumvent contribution limits by donating to a political committee rather than a single candidate. In addition, political committees did not have to disclose from whom they received contributions, as did political parties and candidates. These types of fund-raising and contributions made to committees rather than candidates or parties came to be known as "soft money."

Public perception of the corruption of the political process because of soft money lead to the next set of major amendments, the Bipartisan Campaign Reform Act of 2002 (BCRA). Among other things, the BCRA banned national parties from raising or spending soft money, restricted so-called issue ads, increased the contribution limits and indexed certain limits for inflation.

[edit]