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Introduction Part 1: Big Money The Cost of Winning Part 2: The Issues What's For Sale? Part 3: Past Reforms A Look at the Laws Part 4: Soft Money A Look at the Loopholes Part 5: The Allegations The Excesses of '96 Part 6: Where It Stands Today's Reform Proposals Part 3: The Past Reforms - A Look at the Laws The 1970s saw a burst of campaign finance reform. The first major reform package was signed into law in early 1972 by Richard Nixon -- whose reelection committee then went on to funnel illegal corporate contributions into slush funds, pay for break-ins and trade cash for favors. After the Watergate hearings, campaign laws were toughened once again. The Federal Election Campaign Act amendments of 1974: Established strict disclosure requirements for campaign donations; Set specific limits for those donations; Instituted public financing of presidential elections; And established the Federal Election Commission (FEC) to be the campaign police. From the FEC Public Funding of Presidential Elections The FEC and the Federal Campaign Finance Law The public financing of presidential elections, first administered in 1976, remains controversial -- and widely misunderstood. The basic idea is that it's worth spending tax dollars to replace a system that encourages the unchecked solicitation of private money. Fueled by the voluntary checkoff on tax forms (now $3), the Presidential Election Campaign Fund matches up to $250 of each contribution made to eligible primary candidates in return for a promise that they will limit spending to a certain amount and follow certain other rules. Then, in the general election season, the presidential candidates receive a lump sum in return for not accepting any further private donations. Contribution limits To a candidate or candidate committee per primary or general election To a national party committee per year To any other political committee per year Total per calendar year Individuals $1,000 $20,000 $5,000 $25,000 PACs $5,000 $15,000 $5,000 No limit Source: Federal Election Commission In 1996, for example, the Clinton and Dole campaigns each received about $75 million in taxpayer money after promising not to spend more than $111 million (with a few exemptions). The 1974 rules on contribution limits and disclosure remain in effect. Campaigns must name all contributors who donate more than $200 in a year. From the full text of the Buckley v. Valeo decision: A restriction on the amount of money a person or group can spend on political communication during a campaign necessarily reduces the quantity of expression by restricting the number of issues discussed, the depth of their exploration, and the size of the audience reached. This is because virtually every means of communicating ideas in today's mass society requires the expenditure of money. The 1974 amendments also established mandatory spending limits -- restricting total spending for all federal races, and even limiting independent spending on behalf of federal candidates. But those provisions were struck down by the Supreme Court in 1976, which ruled in Buckley v. Valeo that they violated the First Amendment. The court also struck down a provision that would have limited how much money a candidate can contribute to his or her own campaign. But by and large, the reforms seemed to be doing what they were intended to do. For a while. © Copyright 1997 Digital Ink Company Back to the top Go to Campaign Finance Report | Go to National Section

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