Laws that guide campaign funding say how political campaigns can get and spend money. These rules aim to ensure that votes are fair, stop cheating, and are open and honest. Here are some critical parts of U.S. rules about political finance:
Limits on how much you can contribute:
Individual Contributions:
A person can only give a certain amount to a candidate, political party, or political action group (PAC). For example, as of 2024, each person can give up to $3,300 to a federal candidate each election.
PAC Contributions:
PACs can give up to $5,000 to a candidate each election cycle. They can only provide that to political groups or other PACs.
Requirements for Disclosure
Reporting: For federal races, campaigns must regularly report their funding and spending to the Federal Election Commission (FEC). State and local races must report to their state election commissions. This includes much information about givers, how the money is spent, and how much was given.
Transparency:
The records can be seen by anyone, so people can see who is giving money to campaigns and how it is being spent.
Some contributions are not allowed:
Foreign Contributions:
It is against the law for foreigners or foreign countries to give money to U.S. election campaigns.
Corporations and Unions:
Corporations and unions can’t give money directly to politicians, but they can set up PACs to do so.
Super PACs and separate spending:
Super PACs:
These groups were created after the 2010 Supreme Court decision in Citizens United v. FEC. They can raise and spend as much money as they want without going through campaigns, but they can’t work directly with candidates or parties.
Independent Expenditures:
People and groups can spend as much money as they want on things that aren’t connected to a candidate’s campaign, like ads for or against a candidate.
Financing from the government:
For presidential elections, federal candidates can use a public financing system that gives them money for their campaigns in exchange for spending limits. This method has been chiefly used for general election campaigns. Over time, politicians have chosen to use it less because funding has decreased.
State and Local Elections:
In some places, the government provides help to candidates for state and local office.
Enforcement and Penalties:
In the words of the Federal Election Commission (FEC), the FEC is the main government agency in charge of enforcing federal rules about campaign funding. It ensures people follow the rules, investigates violations, and punishes those who don’t.
State Agencies:
State and local election boards manage campaign funds for state and local races.
Campaign funding laws can be difficult to understand and change from place to place, so politicians, funders, and political groups often consult lawyers to ensure they are following the rules