Isabella Carter
Political campaigns in the United States are dominated by a handful of wealthy donors who are able to exert influence through unlimited spending. The Supreme Court's Citizens United ruling in 2010 removed restrictions on campaign finance, allowing the formation of Super PACs, which can accept unlimited contributions from individuals, corporations, and unions without disclosing their sources of funding. This has resulted in a significant increase in outside spending, with billionaires and special interest groups pouring money into campaigns and drowning out the voices of ordinary Americans. While campaign donations are technically public record, loopholes and a lack of transparency make it difficult to track the true extent of influence by wealthy donors.
| Characteristics | Values |
|---|---|
| Influence of wealthy donors | The Supreme Court's decision in Citizens United allowed unlimited spending in elections, tilting political influence towards wealthy donors and corporations. |
| Super PACs | Outside committees, such as Super PACs, can raise unlimited funds and spend them on campaigns, drowning out the voices of ordinary Americans. |
| Lack of transparency | Dark money groups and non-profits mask the identities of their donors, preventing voters from knowing who is trying to influence them. |
| High spending | Races for a congressional seat can attract tens of millions in spending, with some individuals contributing more than $250,000 to Super PACs. |
| FEC regulations | The FEC has failed to enforce campaign finance laws and its regulations allow outside spending groups to avoid reporting their donors. |
| IRS involvement | The IRS has not investigated whether non-profits are engaged in political activity, allowing them to operate as unregulated political committees. |
| Reporting requirements | All Senate, House, and presidential candidates must report campaign donations to the FEC, but the amount of information collected varies by donation amount, with smaller donations requiring less disclosure. |
| Access to candidates | Donors who contribute relatively small amounts, such as $500, can gain access to private political fundraisers and face time with candidates. |
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What You'll Learn
The Supreme Court's Citizens United ruling
Citizens United v. Federal Election Commission (FEC) centred on Citizens United's plan to release a film within 30 days of the 2008 primary elections. The film was critical of Senator Hillary Clinton and was deemed "express advocacy" or the "functional equivalent of express advocacy", which would have subjected the group to civil and criminal penalties under the Federal Election Campaign Act (the Act). The Act prohibits corporations and unions from using their funds for electioneering communications or speech expressly advocating for or against a federal candidate. Citizens United challenged the Act's ban and the associated disclosure and disclaimer requirements, arguing they were unconstitutional as applied to the film and its advertisements.
The Supreme Court's ruling in 2010 overruled previous decisions that allowed prohibitions on independent expenditures by corporations. The Court upheld the reporting and disclaimer requirements for independent expenditures but removed the restrictions on corporate spending. This decision opened the door for unlimited spending by outside groups, including Super PACs, without disclosing their sources of funding.
The immediate impact of Citizens United was a significant increase in spending by outside groups. In the 2010 election, the first cycle after the ruling, outside groups spent $298 million, more than four times the amount spent in 2006. Super PACs, in particular, benefited from large contributions, with 47 donors giving $1 million or more as of June 30, 2012. The ruling also allowed corporations and unions to spend freely on political campaigns, further enhancing their influence.
While the Citizens United ruling has been criticised for its impact on the transparency and fairness of US elections, it remains in place. Some have called for its reversal through a constitutional amendment or a new Supreme Court decision. In the interim, proposals to mitigate the influence of big money in politics include stronger disclosure laws, stricter rules preventing coordination between Super PACs and candidates, and alternative means of campaign funding.
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Super PACs
Wealthy individuals and corporations have long sought to influence political campaigns and elections, and one of the primary ways they do this is through Super PACs. Short for "super political action committee," Super PACs are a type of political committee in the United States that can raise and spend unlimited amounts of money from corporations, unions, and individuals to influence elections. The key characteristic that defines a Super PAC is its ability to engage in unlimited political spending as long as it does not coordinate directly with a candidate or a campaign.
The advent of Super PACs can be traced back to two pivotal court decisions: the Supreme Court's Citizens United v. FEC ruling in 2010, and a subsequent federal court decision, SpeechNow.org v. FEC. These rulings effectively removed long-standing limits on independent expenditures by individuals, corporations, and unions, paving the way for the formation of Super PACs. Prior to these rulings, traditional PACs were already able to receive and spend funds to advocate for or against political candidates, but they were subject to strict contribution limits. Super PACs, on the other hand, face no such restrictions and can raise funds without any limits, making them a powerful tool for wealthy donors to exert influence.
The lack of restrictions on Super PACs means they can raise funds from virtually any source, including wealthy individuals, corporations, and unions. This has led to a significant increase in the amount of money flowing into political campaigns, often benefiting candidates who align with the interests of these donors. Super PACs are required to disclose their donors to the Federal Election Commission (FEC), but they often exploit loopholes by timing their large donations just after disclosure deadlines, or by funneling money through shell companies, making it difficult to trace the original source. This lack of transparency has raised concerns about the potential for corruption and the outsized influence of a small number of wealthy donors.
While Super PACs are not allowed to coordinate directly with political campaigns, the line between independent spending and coordination is often blurred. Super PACs are typically run by strategists and former aides who have close ties to the candidates they support. They use sophisticated data analytics and polling to align their messaging with the campaigns they support, creating an indirect form of coordination. This has led to criticism that Super PACs are merely a way for wealthy donors to circumvent campaign contribution limits and exert undue influence over elections, often benefiting their own financial or ideological interests.
To sum up, Super PACs have become a significant force in US politics, allowing wealthy donors to exert considerable influence over political campaigns and elections. While the original intent behind their creation may have been to protect free speech, the lack of spending limits and the potential for anonymous donations have led to concerns about the integrity of the political process. As the influence of money in politics continues to be a highly debated topic, the role of Super PACs is likely to remain a key area of focus for campaign finance reform advocates.
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Dark money groups
"Dark money" refers to funds used to influence political outcomes where the source of the money is not disclosed. Dark money groups are organizations that spend money on elections without revealing where their money comes from. They are typically politically active nonprofits and corporate entities such as limited liability companies. These groups are not required to disclose their donors and are allowed to accept unlimited sums of money from individuals, corporations, or unions.
The Citizens United v. Federal Election Commission ruling by the US Supreme Court in 2010 allowed corporations, including certain types of nonprofit corporations, to spend money on political ads that expressly called for the election or defeat of federal candidates. This ruling further tilted political influence toward wealthy donors and corporations, as it unleashed unlimited spending in elections, allowing groups to spend hundreds of millions without disclosing their sources of funding.
The two most common vehicles for dark money in politics are politically active nonprofits and corporate entities. Politically active nonprofits, such as 501(c)(4) organizations, are generally under no legal obligation to disclose their donors, even if they spend large sums to influence elections. When they choose not to reveal their sources of funding, they are considered dark money groups. Similarly, corporate entities can also contribute to dark money groups by forming shell companies or other opaque structures to conceal their identities.
The impact of dark money in politics has been significant. Powerful groups have poured more than $1 billion into federal elections since 2010, focusing on competitive races. Dark money has also seeped into executive, legislative, and judicial elections, threatening the impartiality of state supreme courts. The lack of transparency makes it difficult for voters to know who is trying to influence them, hindering their ability to make informed decisions.
Critics of dark money in politics argue that it poses a serious threat to democracy and creates opportunities for corruption. They advocate for greater transparency in election spending and stronger enforcement of campaign finance laws to address this issue.
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Campaign finance law enforcement
Campaign finance laws are enforced by the Federal Election Commission (FEC), which has exclusive jurisdiction over the civil enforcement of federal campaign finance law. The FEC enforces the Federal Election Campaign Act of 1971 (FECA), which limits the amount of money individuals and political organisations can give to a candidate running for federal office.
The FEC's regulations require outside groups to report their donors only if contributions are earmarked for specific advertisements. However, as donors rarely earmark their donations, this allows outside spending groups to avoid reporting their donors. The FEC has also been criticised for its failure to enforce campaign finance law, with the gridlocked agency offering no guidance on certain issues.
The FEC's enforcement cases can come from audits, complaints, referrals, or self-submissions. Anyone can submit a complaint if they believe a violation of the law has occurred or is about to occur. These complaints are handled by the Office of General Counsel and are known as Matters Under Review (MURs). The public has the right to access redacted files of closed enforcement cases.
At the state level, campaign finance laws are enforced by agencies such as Washington State's Public Disclosure Commission, which is charged with providing public access to information about the financing of political campaigns. The state's Attorney General also has the authority to investigate and bring lawsuits in the event of suspected violations of campaign finance laws.
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Transparency in election spending
One of the main challenges to transparency in election spending is the presence of Super Political Action Committees (Super PACs). Super PACs are independent expenditure-only political committees that can accept unlimited contributions from individuals, corporations, and labor organizations. While Super PACs are not allowed to coordinate directly with political campaigns, they can work closely with them without fear of sanctions. This allows wealthy individuals and corporations to funnel unlimited amounts of money into political campaigns, effectively drowning out the voices of ordinary citizens.
Additionally, the Federal Election Commission (FEC) has been criticized for its failure to enforce campaign finance laws effectively. The FEC's regulations, such as those regarding earmarked contributions, have loopholes that allow outside spending groups to avoid reporting their donors. This lack of enforcement has contributed to the rise of dark money groups, which mask the identities of their donors, preventing voters from knowing who is trying to influence their votes.
To address these issues, several policy solutions have been proposed to increase transparency in election spending:
- Trace-back mechanisms: Implementing trace-back mechanisms that identify the original sources of campaign spending by requiring anyone acting as a conduit to track large donations.
- Extending transparency requirements to digital ads: Ensuring that digital ads clearly disclose their sponsors and creating a public archive of digital ads to prevent unlawful content.
- Disclaimer requirements for Super PAC ads: Mandating that any campaign ad run by a Super PAC or other outside group includes a disclaimer listing their top donors.
- Strengthening the FEC: Reforming and strengthening the FEC to effectively enforce campaign finance laws and hold political candidates and their donors accountable.
- Disclosure regulations for corporations: Issuing regulations that require publicly traded companies to disclose information about their political spending in their mandatory disclosures.
- The DISCLOSE Act: Passing legislation similar to the proposed DISCLOSE Act of 2012, which would require groups spending significant amounts during an election cycle to identify their major donors.
By implementing these measures, it is possible to increase transparency in election spending, reduce the influence of wealthy donors, and empower voters with the information they need to make informed decisions.
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Frequently asked questions
Wealthy donors can give unlimited amounts of money to political campaigns thanks to the 2010 Supreme Court decision, Citizens United, which swept away long-established campaign finance rules. This decision also made it legal for corporations to spend money on elections.
In the 2010 election, the first campaign cycle after Citizens United, outside groups reported spending $298 million, a more than fourfold increase over the amount of outside spending in 2006. As of June 30, 2012, individuals had contributed more than $230 million to Super PACs.
In general, donations made to political campaigns are a matter of public record. All Senate, House, and presidential candidates have to report campaign donations to the Federal Election Commission (FEC). The FEC has a searchable donor database that lets you browse donors by recipient or contributor and further narrow your results by zip code, donor occupation, employer, contribution amount, and more. You can also use a non-profit, non-partisan organisation like OpenSecrets to track money in US elections.
