Simone Lawson
Soft money, or funds raised outside the scope of federal campaign finance laws, has been banned in political campaigns since 2002. Soft money refers to unregulated donations to political parties, in contrast to the strict rules for donations to specific candidates or campaigns. Money contributed directly to a specific candidate is known as hard money and is subject to federal regulations and contribution limits. Soft money was previously used to bolster general party support and could be spent on any generic objective to increase the vote. However, due to its lack of regulation and potential for influencing elections, soft money is now considered a violation of campaign finance laws.
| Characteristics | Values |
|---|---|
| Soft money | Unlimited, unregulated, undisclosed financial contributions to national political parties |
| Soft money ban | Banned by the Bipartisan Campaign Finance Reform Act, following the 2002 election |
| Soft money spending | Spent on whatever the political party wanted, as long as it fit a generic objective to "increase the vote" |
| Soft money vs hard money | Hard money is subject to limits and oversight, soft money is not |
| Soft money loopholes | Soft money can be spent on influencing campaigns indirectly through "party building" activities |
| Soft money today | Soft money has made a comeback in novel forms, such as through "joint fundraising committees" |
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What You'll Learn
- Soft money is unlimited, unregulated, undisclosed, and banned by the Bipartisan Campaign Finance Reform Act
- Soft money is a donation mechanism for political campaigns, distributed through national party committees
- Soft money is given to a political party, not a candidate, and can be used for party building
- Soft money undermines transparency and anti-corruption goals of federal campaign finance laws
- Soft money is used by Super PACs, which can raise and spend unlimited amounts of money
Soft money is unlimited, unregulated, undisclosed, and banned by the Bipartisan Campaign Finance Reform Act
Soft money refers to unlimited, unregulated, and undisclosed donations to political parties. These donations are not made to specific candidates but are instead used for "party-building" activities. Soft money donations are typically made to political action committees (PACs) or parties, and they are not subject to the strict rules that govern donations to individual candidates or campaigns.
Prior to its ban, soft money was a prominent form of political donation due to its lack of restrictions. There were no limits on the amount that could be donated, and it could be spent on any generic objective to "increase the vote". Soft money donations were not publicly disclosed until the 1991-1992 election cycle.
The Bipartisan Campaign Finance Reform Act, also known as the McCain-Feingold Act or BCRA, banned soft money in political contributions following the 2002 election cycle. This Act closed the loopholes that had previously allowed soft money to be pumped into political campaigns. Despite this ban, soft money has made a comeback in novel forms, and lax enforcement of the laws has resulted in soft money continuing to impact elections.
The Federal Election Commission (FEC) is responsible for enforcing campaign finance laws, but its lax enforcement has allowed soft money to continue influencing elections. Supreme Court decisions, such as Citizens United v. FEC in 2010, have further contributed to the rise of soft money by enabling the creation of super PACs. These super PACs can raise and spend unlimited amounts of money, including from corporations and wealthy special interests, and have become a major force in politics.
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Soft money is a donation mechanism for political campaigns, distributed through national party committees
Soft money is a term used to describe unregulated donations to political parties or committees, which are not tied to a specific candidate. It is money donated for a general purpose, such as "increasing the vote" for a party, rather than promoting a particular candidate. Soft money is distributed through national party committees and is considered a donation to the party as a whole, rather than an individual.
In contrast, hard money is a regulated donation with strict limits on the amount that can be donated, where it can be spent, and by whom. Hard money is a direct contribution to a specific candidate and is subject to federal election laws.
Soft money was previously a prominent form of political donation due to its lack of restrictions. It became particularly prominent after the Federal Election Campaign Act of 1974, which restricted hard money donations. However, soft money was officially banned in 2002 by the Bipartisan Campaign Reform Act (BCRA). This was due to soft money's lack of transparency and the potential for corruption, as it allowed corporations and wealthy donors to influence political races without disclosure.
Despite the ban, soft money has made a comeback in novel forms. For example, donors can now contribute large sums to "joint fundraising committees", which can then distribute the money to state political parties. Additionally, lax enforcement of the laws banning soft money has led to its growing impact on elections, with many presidential candidates in recent years being supported by super PACs, which can raise and spend unlimited amounts of money.
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Soft money is given to a political party, not a candidate, and can be used for party building
Soft money is a term used to describe indirect political donations that are not regulated by election laws. These donations are given to a political party, rather than a specific candidate, and are often referred to as "nonfederal" contributions. Soft money can be used for "party-building" activities, which may include advertising that educates voters about issues, as long as it does not specify a candidate or tell voters who to vote for.
Prior to the Federal Election Commission's (FEC) ruling in 1978, funding rules only applied to political campaigns and not to party-building activities. This created a loophole that allowed soft money to become a prominent form of political donation. Soft money donations could be made in unlimited amounts and were not subject to public disclosure.
The Bipartisan Campaign Reform Act (BCRA), also known as McCain-Feingold, banned soft money in political contributions following the 2002 election cycle. However, since the passage of the BCRA, there have been several Supreme Court decisions that have undermined this ban. For example, the 2014 case of McCutcheon v. Federal Election Commission created new paths for high amounts of soft money spending through "joint fundraising committees".
Despite the BCRA and other efforts to regulate soft money, it continues to be a significant factor in political campaigns. In recent years, there have been instances of illegal soft money transfers by presidential candidates, such as Trump and DeSantis, who transferred millions of dollars from their leadership PACs to super PACs supporting their campaigns. These actions highlight the ongoing challenges in enforcing regulations around soft money and maintaining transparency and accountability in political financing.
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Soft money undermines transparency and anti-corruption goals of federal campaign finance laws
Soft money undermines the transparency and anti-corruption goals of federal campaign finance laws. Soft money refers to unregulated donations to political action committees or parties, in contrast to the strict rules for donations to specific candidates or campaigns. Because soft money is not regulated by election laws, companies, unions, and individuals may give donations of any amount to a political party for "party-building" purposes.
Party-building may include ads that educate voters about issues, as long as the ads do not specify which candidates to vote for. For example, an ad that says, "Candidate X has a record that includes awful things. If these awful things continue, people will come to your house, steal your money, and shoot your dog," does not explicitly tell the voter to vote against Candidate X. However, it is clear that this ad is designed to influence the voter's choice. Because soft money rules allow corporations and wealthy donors to influence races, they are sometimes described as a loophole in campaign spending laws.
Soft money was officially banned in 2002 by the Bipartisan Campaign Reform Act (BCRA). However, since the passage of the BCRA, there have been numerous Supreme Court decisions that have undermined the Act. Notably, the Supreme Court decision in the 2014 case of McCutcheon v. Federal Election Commission effectively created new paths for high amounts of soft money spending. Donors can now make significant contributions to entities known as "joint fundraising committees." These umbrella entities can then split contributions into smaller fractions and distribute them to groups, which may then funnel the money to political campaigns.
The use of soft money in federal campaigns is a blatant violation of the law. However, lax enforcement of the laws banning soft money by the Federal Election Commission (FEC) has produced an environment where soft money is having a growing impact on elections. As a result, voters' rights to know who is trying to influence their vote and their government are undermined, and they cannot be assured that the political process is fair and free of corruption.
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Soft money is used by Super PACs, which can raise and spend unlimited amounts of money
Soft money refers to unregulated donations to political parties for general "party-building" purposes, not the support of a particular candidate. It is a largely unregulated donation mechanism. Soft money is given to a political party and not a particular candidate.
Soft money was unlimited, unregulated, and undisclosed financial contributions to national political parties. It was banned by the Bipartisan Campaign Finance Reform Act, following the 2002 election. Soft money was often called "'nonfederal' contributions." However, since the passage of the BCRA, there have been numerous Supreme Court decisions that have undermined key provisions of the bill.
The Supreme Court's decision in the 2014 case of McCutcheon v. Federal Election Commission, for example, effectively created new avenues for high amounts of soft money spending. Donors can now make substantial contributions to entities known as "joint fundraising committees." These umbrella organizations can then divide contributions into smaller amounts and distribute them to groups, typically state political parties, which may then funnel the money to their national affiliates. This process allows donors to circumvent limits on how much an individual can contribute to a national political party.
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Frequently asked questions
Soft money refers to unregulated donations to political parties or committees, as opposed to the strict rules for donations to specific candidates or campaigns. Soft money is also known as non-federal funds and is raised outside the limitations imposed by the FEC.
Soft money was banned in 2002 by the Bipartisan Campaign Finance Reform Act. Soft money was previously distributed through national party committees to bolster general party support, creating a grey area regarding its use.
Money contributed directly to a specific candidate is known as hard money, while indirect contributions to political parties and committees are considered soft money. Hard money is subject to strict limits and regulations, whereas soft money has no such restrictions.
