10.1 Campaign Finance Laws and Regulations

Campaign finance laws aim to prevent corruption and ensure fair elections. From Progressive Era reforms to post-Watergate legislation, these regulations have evolved to tackle wealthy donor influence and promote transparency in political campaigns.

Key legislation like FECA and the Bipartisan Campaign Reform Act set contribution limits and created oversight bodies. However, Supreme Court decisions have reshaped the landscape, allowing for increased spending by corporations and wealthy individuals in elections.

Historical Context and Key Legislation

Origins of campaign finance laws

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• Progressive Era reforms tackled political corruption and wealthy donor influence through increased transparency and restrictions
• Watergate scandal exposed illegal campaign contributions and financial abuses prompting stricter oversight
• Campaign finance laws aimed to prevent corruption, promote transparency, and ensure fair elections (Clean Elections initiatives)
• Regulations evolved from minimal oversight to comprehensive laws (Federal Election Campaign Act)

Key provisions of FECA

• Federal Election Campaign Act of 1971 mandated disclosure for federal candidates and limited media ad spending
• 1974 FECA Amendments introduced contribution limits for individuals and PACs ($2,800 individual limit) and created the Federal Election Commission
• Bipartisan Campaign Reform Act (2002) banned soft money to national parties and restricted issue advocacy ads (electioneering communications)

Regulatory Bodies and Legal Challenges

Role of Federal Election Commission

• Six commissioners, max three per party, to maintain bipartisan balance
• Oversees disclosure of campaign finance info, enforces contribution limits, and manages public funding of presidential elections
• Conducts audits and field investigations to ensure compliance
• Requires four-vote majority for action, often leading to gridlock (3-3 split votes)

Supreme Court impact on regulations

• Buckley v. Valeo (1976) upheld contribution limits but struck down expenditure limits as unconstitutional speech restrictions
• Citizens United v. FEC (2010) allowed unlimited independent expenditures by corporations and unions, overturning previous bans
• McCutcheon v. FEC (2014) eliminated aggregate contribution limits across candidates and committees
• Decisions led to rise of super PACs (Priorities USA) and dark money groups, increasing wealthy donors' influence in elections