CAMPAIGN FINANCE REFORM

Until 1970's campaign finance was unregulated, which meant that:

• personal wealth was v.imp. i.e. JFK in 1960 and Trump in 2016.
• no limit on amount people could give to candidates.
• 'fat cats' gave lots of $ (sometimes Mns).
• no limit on campaign spending.

:- OPPORTUNITIES FOR CORRUPTION

Lots of things in'70s led to campaign finance reform:

• Congress began to pass legislation in'71 to restrict contribution and expenditure.
• Watergate affair = catalyst for change due to decline in publics confidence in gov. - stricter finance laws are widely embraced.
• Congress passed another finance law in'74.

THE FEDERAL ELECTION CAMPAIGN ACT 1974

• Limited individual contributions to a candidate to 1000$
• Limited corporate contributions to a candidate to 5000$
• Forbade foreign donors

FECA CONT...

Limited candidates expenditure to:

• 10mn in primaries
• 20mn in general elections

+ also provided 'matching funds' from the fed gov. to help finance pres elections.

+FEC (federal election committee) created to enforce and regulate new system.

• 'Soft money' - spent by parties on 'party building'/'get out the vote campaigns' - no limit $.
• Growth in issue advocacy - no limit $ - abortion etc

- made by super PACs on tv ads-pres approve message

• Matching funds go directly to candidates organisations rather than party - essentially do what they want - parties have less influence on candidate.
• FEC failed to enforce consequences on those who break the rules.

• Campaign finance abuses for Bill Clintons re-election campaign - got money from China to campaign :0
• John McCain made Campaign Finance reform a key issue in his (failed) campaign for Rep. nomination - still influential, he's a senator.
•  McCain and Russel Feingold (Dem.) pushed through another raft of reforms in Congress in 2002. 
• BIPARTISAN CAMPAIGN REFORM ACT (BCRA) OR McCAIN AND FEINGOLD ACT.

• National Party Committees banned from raising or spending 'soft money' and barred from producing issue ads.
• Labour unions and corporate groups forbidden from directly funding issue ads.
• Banned ads that named a candidate in pres/cong elections within 30 days of a primary or 60 days of a general election.
• No fundraising on federal property.

• McConnell vs FEC (2003)

-  upheld constitutionality of most of BCRA.

• FEC vs Wisconson Right To Life (2007)

- removed acts ban on issue ads during run up to elections - freedom of political speech.

• Citizens United vs FEC (2010)

- struck down many of the limitations to campaign donations and weakened BCRA - money is equivalent to political speech.

- paved the way for super PACS - can spend unlimited amounts of money promoting a candidate or publicising a cause - may not directly contribute to a candidate or coordinate with a campaign-2012 election-over 500 registered super PACS.

• McCutcheon vs FEC 

- wealthy man, Sean McCutcheon wanted to be able to surpass the aggregate limit of $48,600. 

- he doesnt want to give more large sums of money but wants to be able to give small sums to mulitple politicians - giving $1000 to 49 politicians isnt okay but giving to 48 is???

- 5:4 decision in his favour - still limits on single individual donations

• Buckley vs Valeo (1976)

- limits on campaign spending were problematic under 1st amendment because limiting the amount someone can spend on politics was basically limiting what that person could say about politics.

• PACs can spend money the way they want to 
  
• Rep=money is corruption
• Dem= money is speech
• Super PACs raise huge sums of money - can't coordinate with a candidate
• Politicians sometimes run super PACs - conflict of interest?
• 2012-Super PACs raise $100mn 
• Corporations are citizens therefore should have the same rights?