Simone Lawson
Political campaigns are governed by a set of finance laws that limit the amount of money that individuals and organisations can contribute. These laws are enforced by the Federal Election Commission (FEC) and vary depending on the office, the committee and the contributor. For example, a political party committee must have been in existence for at least six months and have received contributions from 100 or more people, with no single person contributing more than $200 per calendar year. The FEC also recommends that campaigns encourage contributors to designate their contributions for specific elections, as this ensures that the contributor's intent is clear and avoids the appearance of excessive contributions. These contribution limits are updated every two years to account for inflation.
| Characteristics | Values |
|---|---|
| Date of contribution | The date of receipt is the date the campaign or a person acting on the campaign's behalf receives the contribution. This date is used for reporting purposes and affects the application of the net debts outstanding rule. |
| Electronic contributions | The date of receipt is the date on which the committee obtains the contributor's authorization of the transaction. The treasurer should retain a record of the receipt. |
| In-kind contributions | The date of receipt is the date the goods or services are provided to the committee, even if the contributor pays the bill after they are provided. |
| Federal law limits | The Federal Election Campaign Act (FECA) of 1971 limits the amount of money individuals and political organizations can give to a candidate running for federal office. |
| State law limits | As of January 1, 2021, a state campaign contribution limit applies by default to city and county candidates if the city or county has not enacted its own laws. |
| Inflation adjustments | Every two years, certain contribution limits are indexed for inflation, based on the change in the cost of living since 2001. The per-election limits on contributions to candidates are in effect for the two-year election cycle. |
| Limits for individuals | For 2023-2024, the limit on contributions made by persons to candidates is $3,300 per election, per candidate. |
| Limits for national party committees | For 2023-2024, the limit on contributions made by persons to national party committees is $41,300 per calendar year. |
| Limits for political party committees to Senate candidates | For 2023-2024, the limit on contributions made by certain political party committees to Senate candidates is $57,800 per campaign. |
| Super PACs | Independent-expenditure-only political committees ("Super PACs") may accept unlimited contributions, including from corporations and labor organizations. |
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What You'll Learn
Federal law limits on campaign contributions
Federal law in the US limits the amount of money individuals and political organisations can contribute to a candidate's campaign during federal elections. These laws are enforced by the Federal Election Commission (FEC) under the Federal Election Campaign Act of 1971 (FECA). The FEC also oversees the enforcement of public funding used in presidential elections.
The FEC enforces contribution limits for individuals and groups, with separate limits for each federal election in which the candidate participates. These limits are indexed for inflation every two years, based on the change in the cost of living since 2001. For 2023-2024, the contribution limit per person per candidate was $3,300 per election, and $41,300 per calendar year for contributions to national party committees.
There are also specific rules regarding the types of contributions and the dates they are received. For example, cash contributions are limited to $100 per particular source, and anonymous cash contributions are limited to $50. In-kind contributions are also subject to limits and count against the contributor's limit for the next election unless otherwise designated.
Additionally, there are rules regarding contributions made before and after primaries. If a contribution is designated for a primary but made before the election, it will not be subject to the net debts outstanding rule, even if the campaign receives the contribution after the primary. On the other hand, if a contribution is designated for a primary but made after the election, it is only acceptable if the campaign has net debts outstanding for the primary on the date of receipt. All contributions must be deposited within 10 days, although the date of deposit is not used for reporting or contribution limit purposes.
It is important to note that candidates can spend their own personal funds on their campaigns without limits. However, they must report the amount they spend to the FEC, and there are rules in place regarding the use of personal funds for publicly funded presidential nominees.
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State campaign contribution limits
Campaign finance laws in the United States impose limits on the amount of money that individuals and organisations can contribute to a political campaign. These laws apply at both the federal and state levels, with the Federal Election Commission (FEC) enforcing the Federal Election Campaign Act (FECA) of 1971. The Act prohibits campaigns from retaining contributions that exceed the specified limits and outlines procedures for handling excessive funds.
At the state level, campaign contribution limits vary depending on the office, the committee, and the contributor. As of January 1, 2021, a state campaign contribution limit applies by default to city and county candidates in the absence of local laws addressing contribution limits. State committees, including political parties and Political Action Committees (PACs), can receive contributions exceeding the limits, provided they are not used for state candidate contributions.
State candidates or officeholders are restricted in their contributions to committees controlled by other state candidates or officeholders. As of January 1, 2021, the limit is set at $5,900 per election, encompassing contributions from personal funds and campaign funds. This restriction does not apply to committees formed to oppose a state candidate's recall or to candidate-controlled ballot measure committees.
Additionally, there are specific requirements for Small Contributor Committees and Political Party Committees. Small Contributor Committees must have existed for at least six months, receive contributions from at least 100 individuals with no single contribution exceeding $200 per year, and contribute to a minimum of five candidates. Political Party Committees refer to state or county central committees recognised as political parties under the Elections Code.
It is important to note that contribution limits for state offices and committees are subject to change and may vary across different states and localities. For the most up-to-date and location-specific information, it is recommended to refer to official sources, such as the FEC website or relevant state and local election authorities.
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Political Action Committees (PACs)
At the federal level in the US, an organization becomes a PAC when it receives or spends more than $1,000 for the purpose of influencing a federal election, and registers with the Federal Election Commission (FEC). Federal law formally allows for two types of PACs: connected and non-connected. Judicial decisions added a third classification, independent expenditure-only committees, which are colloquially known as "super PACs". Most of the active, registered PACs are "connected PACs" or "corporate PACs", which are established by businesses, non-profits, labor unions, trade groups, or health organizations.
There are also hybrid PACs, which are similar to super PACs but can give limited amounts of money directly to campaigns and committees while still making independent expenditures in unlimited amounts. Hybrid PACs solicit and accept unlimited contributions from individuals, corporations, labor organizations, and other political committees to a segregated bank account.
Leadership PACs are another type of PAC, often formed by politicians to raise money to help fund other candidates' campaigns. They are indicative of a politician's aspirations for leadership positions in Congress or for higher office.
PACs can give $5,000 to a candidate committee per election (primary, general, or special) and up to $15,000 annually to any national party committee. They can receive up to $5,000 from any one individual, PAC, or party committee per calendar year.
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Super PACs and unlimited contributions
Political action committees (PACs) are tax-exempt 527 organizations that pool campaign contributions from members and donate those funds to campaigns for or against candidates, ballot initiatives, or legislation. The Bipartisan Campaign Reform Act of 2002 (also known as the McCain-Feingold Act) created rules for disclosure, requiring all donations received by PACs to go through a central committee maintained by the PAC.
Federal law formally allows for two types of PACs: connected and non-connected. Judicial decisions added a third classification, independent expenditure-only committees, which are colloquially known as "super PACs". These super PACs are independent-expenditure-only political committees that may accept unlimited contributions, including from corporations and labor organizations. They are not, however, permitted to make direct contributions to political candidates or parties.
In its 2010 case Citizens United v. FEC, the Supreme Court of the United States overturned sections of the 2002 Campaign Reform Act that had prohibited corporate and union political independent expenditures in political campaigns. The ruling stated that it was unconstitutional to prohibit corporations and unions from spending from their general treasuries to promote candidates. This decision further tilted political influence toward wealthy donors and corporations, empowering the wealthiest donors and expanding the influence of special interest groups.
The Federal Election Commission (FEC) enforces the Federal Election Campaign Act of 1971 (FECA), which limits the amount of money individuals and political organizations can give to a candidate running for federal office. The FEC also sets campaign contribution limits for individuals and groups and oversees public funding used in presidential elections. Every two years, the FEC updates certain contribution limits, such as the amount individuals may give to candidates and party committees, which are indexed to inflation.
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Candidates' personal funds
Candidates are allowed to spend their own personal funds on their campaigns without limits. However, they must report the amount they spend to the Federal Election Commission (FEC). 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 also oversees the enforcement of laws specified under FECA by setting campaign contribution limits for individuals and groups.
The Bipartisan Campaign Reform Act (BCRA), which came into effect in 2002, increased the contribution limits for individuals giving to federal candidates and political parties. The FEC updates these contribution limits every two years, with the limits indexed to inflation. The inflation-adjusted limits for 2023-2024 include the limits on contributions made by persons to candidates, which increased to $3,300 per election, per candidate.
State campaign contribution limits also exist, which apply by default to city and county candidates when the local jurisdiction has not already enacted laws addressing contribution limits. These limits vary depending on the office, the committee, and the contributor. For example, a state candidate or state officeholder in California may not contribute more than $5,900 to a committee controlled by another state candidate or state officeholder.
Independent-expenditure-only political committees, also known as "Super PACs", are not subject to the same contribution limits and may accept unlimited contributions, including from corporations and labour organisations.
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Frequently asked questions
The maximum contribution to a federal political campaign by an individual is $3,300 per election, per candidate.
Yes, there are limits to how much a political campaign can receive from a single source. These limits vary depending on the office being sought and the committee receiving the contributions. For example, as of January 1, 2021, a state campaign contribution limit applies by default to city and county candidates in the US when the city or county has not already enacted laws addressing contribution limits.
Yes, candidates can spend their own money on their campaign without any limits. However, they must report the amount they spend to the Federal Election Commission (FEC).
