Show pageOld revisionsBacklinksBack to top This page is read only. You can view the source, but not change it. Ask your administrator if you think this is wrong. ====== Bipartisan Campaign Reform Act (BCRA): The Ultimate Guide to McCain-Feingold and Campaign Finance ====== **LEGAL DISCLAIMER:** This article provides general, informational content for educational purposes only. It is not a substitute for professional legal advice from a qualified attorney. Always consult with a lawyer for guidance on your specific legal situation. ===== What is the Bipartisan Campaign Reform Act (BCRA)? A 30-Second Summary ===== Imagine American politics is a high-stakes football game. For years, wealthy fans could give unlimited, secret cash to the teams' front offices—not for specific plays, but for "improving the stadium" or "scouting new talent." This was called "soft money." Everyone knew this money influenced who got to play and what plays were called, making the game feel rigged. The **Bipartisan Campaign Reform Act (BCRA)**, passed in 2002 and often called the **McCain-Feingold Act**, was the referee's attempt to clean up the game. It blew the whistle and said, "No more secret, unlimited cash to the front office (the political parties)!" It also tried to control the loud, last-minute TV commercials funded by corporations and unions right before election day, demanding to know who was paying for them. For a while, the rules held. But then, a series of Supreme Court challenges, most famously `[[citizens_united_v._fec]]`, argued that some of these rules violated free speech. The Court agreed in part, changing the game forever and leading to the rise of new power players like `[[super_pacs]]`. * **Key Takeaways At-a-Glance:** * **Ending "Soft Money":** The **Bipartisan Campaign Reform Act (BCRA)**'s primary goal was to ban national political parties from raising or spending unlimited, unregulated funds known as `[[soft_money]]`. * **Regulating Political Ads:** The **Bipartisan Campaign Reform Act (BCRA)** created a new category of political ad called an "[[electioneering_communication]]" and restricted corporations and unions from funding them in the crucial weeks before an election. * **Court Challenges Redefined the Law:** While parts of the **Bipartisan Campaign Reform Act (BCRA)** remain, landmark Supreme Court cases dramatically altered its scope, arguing that corporations and unions have a `[[first_amendment]]` right to spend money on political speech, which reshaped the landscape of modern campaign finance. ===== Part 1: The Legal Foundations of the BCRA ===== ==== The Story of BCRA: A Historical Journey ==== The road to the Bipartisan Campaign Reform Act was paved with the political scandals and fundraising frenzies of the 1990s. The existing law, the `[[federal_election_campaign_act_(feca)]]`, had created a system with two parallel universes of money. There was **"hard money"**—donations made directly to a candidate's campaign, which were limited and had to be publicly disclosed. Then there was its shadowy twin, **"soft money."** Soft money was a giant loophole. Corporations, unions, and mega-donors could give unlimited funds to national political parties for so-called "party-building activities." This could mean anything from voter registration drives to generic "get out the vote" ads. In reality, these funds were often used to run thinly veiled attack ads that benefited specific federal candidates, all while bypassing the contribution limits designed to prevent corruption or the appearance of it. By the 1996 presidential election, the system had spiraled out of control. Both parties raised hundreds of millions in soft money, leading to controversies over fundraising practices, including allegations of foreign influence and the "selling" of access to high-level politicians. The public's trust in government was eroding. In this climate of distrust, an unlikely political duo emerged: Republican Senator John McCain of Arizona and Democratic Senator Russ Feingold of Wisconsin. For years, they championed campaign finance reform, arguing that the flood of unregulated money was corrupting the democratic process. Their efforts faced immense opposition from incumbents in both parties who benefited from the existing system. After years of failed votes and filibusters, the Enron scandal in 2001 provided the final push. The spectacular collapse of the energy giant, which had been a massive soft money donor to both parties, created a public outcry that lawmakers could no longer ignore. In 2002, Congress finally passed, and President George W. Bush signed, the Bipartisan Campaign Reform Act. It was the most significant piece of campaign finance legislation in a generation. ==== The Law on the Books: Key Provisions of the Act ==== The BCRA is not a single, standalone document but a series of amendments to the existing Federal Election Campaign Act. Its provisions are codified within Title 52 of the U.S. Code. The two most transformative sections were Title I and Title II. * **Title I - Ban on Soft Money:** This was the law's heart. It made it illegal for national political parties (like the RNC and DNC) to "solicit, receive, direct, transfer, or spend" soft money. * **Statutory Language (Simplified):** "A national committee of a political party... may not solicit, receive, or direct to another person a contribution, donation, or transfer of funds or any other thing of value, or spend any funds, that are not subject to the limitations, prohibitions, and reporting requirements of this Act." * **Plain-Language Explanation:** This language effectively turned off the soft money spigot for the national parties. All money they raised now had to be "hard money"—from permissible sources, within strict federal limits, and fully disclosed to the `[[federal_election_commission_(fec)]]`. * **Title II - Non-Candidate Campaign Expenditures:** This section tackled the issue of sham "issue ads" run by outside groups. * **Defining "Electioneering Communication":** The law created and defined a new term: "electioneering communication." This was any broadcast, cable, or satellite ad that: * Refers to a clearly identified federal candidate. * Is publicly distributed within 60 days of a general election or 30 days of a primary election. * Is targeted to the relevant electorate. * **The Restriction:** BCRA prohibited corporations and labor unions from using their general treasury funds to pay for these electioneering communications. They could still fund such ads, but only through their separate, regulated `[[political_action_committees_(pacs)]]`, which raise money through voluntary contributions from members or employees, not from the corporate or union bank account. ==== A Nation of Contrasts: BCRA and State Campaign Finance ==== BCRA is a federal law that governs federal elections (President, Senate, House of Representatives). However, it exists within a complex ecosystem of 50 different state-level campaign finance systems. Its passage prompted many states to re-evaluate their own laws, creating a patchwork of regulations across the country. ^ Feature ^ Federal Level (Under BCRA) ^ California ^ Texas ^ New York ^ Florida ^ | **Soft Money to Parties** | **Banned** for national parties. State parties have some limited use for non-federal activities. | **Banned.** California has strict limits on contributions to political parties. | **Permitted.** Corporations and unions are banned from donating directly to candidates, but can give unlimited amounts to political parties for some activities. | **Allowed, but with limits.** New York has high contribution limits for parties, but not unlimited soft money. | **Allowed, but with limits.** Contributions to political parties are limited per year. | | **Corporate/Union Spending** | **Banned** for electioneering communications (overturned by *Citizens United*). Now allowed for independent expenditures. | **Banned** for direct candidate contributions. Allowed for independent expenditures, with disclosure. | **Banned** for direct candidate contributions. Allowed for independent expenditures. | **Banned** for direct candidate contributions. Allowed for independent expenditures, with a low limit. | **Banned** for direct candidate contributions. Allowed for independent expenditures. | | **Disclosure Requirements** | **Robust.** All federal contributions over $200 must be itemized and reported to the FEC. | **Very Strict.** The "Political Reform Act" requires extensive disclosure of donors, often in real-time. | **Generally Strong.** Requires disclosure of contributions and expenditures, but has been criticized for loopholes. | **Comprehensive.** Requires detailed disclosure from campaigns and independent spenders. | **Strong.** Requires regular and detailed reporting of all contributions and expenditures. | | **What It Means For You** | Your federal donations are limited and public. The ads you see are increasingly funded by outside groups, not candidates. | You live in a state with some of the strictest campaign finance laws, designed for maximum transparency. | You live in a state where political parties can still be major financial players, and corporate/union influence is channeled through them and PACs. | Your state tries to strike a balance, allowing significant party activity but with more oversight than in Texas. | Your state's rules focus heavily on disclosure, allowing a wide range of political spending as long as it is reported. | ===== Part 2: Deconstructing the Core Elements ===== ==== The Anatomy of the BCRA: Key Components Explained ==== The BCRA was a complex piece of legislation with several moving parts. Understanding its core titles is essential to grasping what it did—and how it was later dismantled. === Title I: The Ban on "Soft Money" === This was the cornerstone of the McCain-Feingold Act. Before BCRA, a corporation could write a $500,000 check to a political party, which was perfectly legal "soft money." That corporation couldn't give more than a few thousand dollars in "hard money" directly to a candidate. The soft money ban was designed to stop this two-track system. * **The Problem It Solved:** It aimed to prevent a scenario where a large donor gives a massive check to the party of the President, and shortly after, a favorable regulatory decision is made. Even if there was no direct quid pro quo, it created a powerful **appearance of corruption**, which the Supreme Court has long held is a compelling reason to regulate campaign finance. * **The Practical Effect:** National party committees could no longer accept six- and seven-figure checks from single donors. Their fundraising had to focus on smaller, limited "hard money" donations from individuals and PACs, the same as candidates. === Title II: The Regulation of "Electioneering Communications" === This title was a direct response to the explosion of pseudo-"issue ads" in the 1990s. These ads would feature a candidate's picture, criticize their voting record on a hot-button issue like taxes or the environment, and run a week before the election. They would cleverly avoid "magic words" of `[[express_advocacy]]` like "Vote for Smith" or "Defeat Jones," which would have required them to register as a PAC. * **The Problem It Solved:** BCRA created a new, functional test. It didn't matter if the ad used magic words. If it looked like a campaign ad, aired like a campaign ad, and mentioned a candidate right before an election, it would be regulated as one. * **The Practical Effect:** For several years, this provision significantly reduced the number of corporate- and union-funded attack ads in the final stretch of a campaign. It forced these groups to use their more-regulated and less-funded PACs to pay for such advertising, leveling the playing field for candidates who had to abide by contribution limits. This entire framework was the central issue in the `[[citizens_united_v._fec]]` case. === Titles III & IV: Contribution Limits and "Stand By Your Ad" === To compensate for the loss of soft money, BCRA indexed "hard money" contribution limits to inflation. The limit for an individual giving to a candidate, which had been $1,000 per election since the 1970s, was raised to $2,000 and has increased since. Perhaps the most culturally significant part of BCRA was the "Stand By Your Ad" provision. It required candidates for federal office to include a statement in their advertisements that they approved the message. * **Example:** The familiar phrase, **"I'm John Smith, and I approve this message,"** is a direct result of BCRA. * **The Problem It Solved:** This provision was designed to reduce negative campaigning. The theory was that candidates would be less likely to run deceptive or nasty attack ads if they had to personally attach their name and face to the content, increasing accountability. ==== The Players on the Field: Who's Who in Campaign Finance ==== BCRA and the court cases that followed reshaped the political landscape, defining the roles of key players. * **The Federal Election Commission (FEC):** The `[[federal_election_commission_(fec)]]` is the independent regulatory agency tasked with administering and enforcing federal campaign finance law. It writes regulations to implement the law, provides guidance to campaigns, and investigates violations. However, it is often hampered by partisan gridlock among its six commissioners. * **Candidates and Their Campaigns:** These are the individuals running for federal office. They must raise "hard money" within strict limits and report all their finances to the FEC. * **Political Parties:** National parties (DNC, RNC) can no longer accept soft money but remain crucial players, raising hard money and coordinating with candidates. * **Political Action Committees (PACs):** A traditional `[[political_action_committee_(pac)]]` is a group that raises money from its members or employees to donate directly to candidates and parties. They face strict limits on both how much they can raise from any one person and how much they can give to a candidate. * **Super PACs:** Born from the legal reasoning in *Citizens United*, a `[[super_pac]]` can raise unlimited sums of money from corporations, unions, and individuals. They cannot donate directly to a candidate or coordinate with a campaign, but they can spend unlimited amounts on `[[independent_expenditures]]`, such as running their own ads for or against a candidate. * **501(c)(4) "Social Welfare" Organizations:** These non-profit groups, like the Sierra Club or the NRA, can engage in some political activity as long as it's not their primary purpose. The key difference is that they generally do not have to disclose their donors. When they spend money on politics, it is often called **"dark money,"** and this has become one of the most controversial aspects of modern campaign finance. ===== Part 3: Your Practical Playbook ===== While the BCRA's rules are complex, understanding them can empower you as a citizen, donor, or activist. Here's how to navigate the world it created. === Step 1: Understand How You Can Contribute === As an individual, you have a right to participate financially in politics, but there are rules. * **Direct Contributions:** You can donate "hard money" directly to candidates, PACs, and parties. These amounts are limited. For the 2023-2024 election cycle, an individual can give $3,300 per election (primary and general are separate) to a federal candidate. Check the `[[federal_election_commission_(fec)]]` website for the latest limits, as they adjust for inflation. * **Small-Dollar Donations:** Platforms like ActBlue and WinRed have made it easy to give small amounts to many candidates. Even small donations, when bundled together, are a powerful force in politics and are fully compliant with the law. === Step 2: Differentiate Between Campaign Ads and Outside Group Ads === When you see a political ad on TV or online, the first question to ask is: "Who paid for this?" * **Candidate Ad:** If you hear **"I'm Jane Doe and I approve this message,"** you know the candidate's own campaign paid for it with regulated "hard money." * **Party Ad:** The ad might say it's paid for by a political party. This is also funded with "hard money." * **Outside Group Ad:** If the ad says it's paid for by "Americans for a Better Tomorrow" and includes the phrase **"not authorized by any candidate or candidate's committee,"** you are looking at an independent expenditure. This is likely from a `[[super_pac]]` or `[[501(c)(4)_organization]]`. The money behind this ad is likely unlimited and, in the case of a 501(c)(4), potentially secret. === Step 3: Use Public Databases to Follow the Money === Transparency is one of the few universally agreed-upon goals of campaign finance law. The FEC's website (FEC.gov) is a powerful tool for citizens. * **Look Up Candidates:** You can see every single individual who gave more than $200 to any federal campaign. * **Research PACs and Super PACs:** You can find out who is funding a Super PAC—which corporations, unions, or billionaires are writing the checks. * **Track Spending:** You can see how campaigns and outside groups are spending their money. This data allows journalists, watchdogs, and you to hold political players accountable. ===== Part 4: Landmark Cases That Shaped Today's Law ===== The story of the BCRA is inseparable from the legal battles it sparked. While it was intended to reduce the role of money in politics, a series of Supreme Court decisions reinterpreted the law and the `[[first_amendment]]`, fundamentally changing its impact. ==== Case Study: McConnell v. FEC (2003) ==== * **The Backstory:** Immediately after BCRA was signed into law, a broad coalition of plaintiffs, including Senator Mitch McConnell, the NRA, and the ACLU, sued to have it declared unconstitutional, arguing it infringed on free speech. * **The Legal Question:** Did the ban on soft money and the regulation of electioneering communications violate the First Amendment's guarantee of free speech? * **The Court's Holding:** In a surprising 5-4 decision, the Supreme Court **upheld the core provisions of BCRA**. The majority opinion, written by Justices Stevens and O'Connor, argued that the government's interest in preventing "both the actual corruption threatened by large financial contributions and the appearance of corruption" was a compelling enough reason to justify the regulations. * **Impact on You Today:** For a brief period, *McConnell* solidified the BCRA and ushered in an era where the flow of large, unregulated donations was significantly stemmed. It represented the high-water mark for campaign finance regulation in the modern era. ==== Case Study: Wisconsin Right to Life, Inc. v. FEC (2007) ==== * **The Backstory:** An anti-abortion group, Wisconsin Right to Life (WRTL), wanted to run broadcast ads encouraging citizens to contact their senators and urge them to oppose filibusters of judicial nominees. Because the ads mentioned a senator who was up for re-election and ran within BCRA's 30-day primary window, they were considered prohibited electioneering communications. * **The Legal Question:** Could BCRA's ban on corporate-funded electioneering communications be constitutionally applied to ads that were genuine issue advocacy and not express calls to vote for or against a candidate? * **The Court's Holding:** The Court sided with WRTL. Chief Justice Roberts wrote that the ban could not be applied to these specific ads, arguing that any ad's "functional equivalent of express advocacy" could be determined only by a narrow test: if the ad has "no reasonable interpretation other than as an appeal to vote for or against a specific candidate." This created a huge loophole. * **Impact on You Today:** This case began the process of chipping away at BCRA's Title II. It made it much easier for outside groups to run "issue ads" right before an election, as long as they were carefully worded. ==== Case Study: Citizens United v. FEC (2010) ==== * **The Backstory:** In 2008, a conservative non-profit called Citizens United produced "Hillary: The Movie," a feature-length documentary highly critical of then-Senator Hillary Clinton. They wanted to make it available through video-on-demand services during the primary season. The FEC determined this would be an illegal electioneering communication funded with corporate money. * **The Legal Question:** The case started as a narrow question about video-on-demand but the Supreme Court expanded it to a fundamental one: Does the government have the authority to prohibit corporations and unions from spending their own money on political speech (i.e., `[[independent_expenditures]]`) in candidate elections? * **The Court's Holding:** In a landmark and controversial 5-4 decision, the Court ruled that **corporations and unions have the same First Amendment free speech rights as individuals**. Therefore, the government could not ban them from making independent political expenditures. The Court overturned the part of *McConnell* that upheld the ban on corporate-funded electioneering communications. It reasoned that independent spending does not create corruption or the appearance of corruption, though it upheld disclosure requirements. * **Impact on You Today:** **This ruling completely reshaped American politics.** It opened the floodgates for unlimited corporate and union spending in elections. It directly led to the creation of `[[super_pacs]]` and the explosion of spending by `[[501(c)(4)_organizations]]`. The vast majority of political ads you see today from non-candidate groups are a direct result of the *Citizens United* decision. ===== Part 5: The Future of the BCRA ===== ==== Today's Battlegrounds: The Post-Citizens United World ==== The Bipartisan Campaign Reform Act still exists on the books, but its landscape has been bulldozed by court decisions. The ban on soft money contributions *to parties* remains intact, as do disclosure rules and the "Stand By Your Ad" provision. However, the world of unlimited independent spending has created new controversies. * **The Rise of Super PACs and Dark Money:** The defining feature of the last decade has been the staggering amounts of money spent by Super PACs and non-disclosing 501(c)(4)s. While Super PACs must disclose their donors, they are often funded by a handful of billionaires, raising concerns about the oversized influence of the ultra-wealthy. Dark money groups, which don't disclose their donors, raise fears about secret, unaccountable influence over elections. * **Coordination Loopholes:** Super PACs are supposed to be "independent." However, critics argue the rules against `[[coordination]]` are weak and poorly enforced. Political operatives can leave a campaign, immediately start a Super PAC to support that same candidate, and use publicly available information to effectively operate as an arm of the campaign, all while taking in unlimited funds. * **FEC Gridlock:** The `[[federal_election_commission_(fec)]]` is often deadlocked with a 3-3 partisan split, rendering it unable to write new rules or pursue significant enforcement actions in these controversial new areas. ==== On the Horizon: How Technology and Society are Changing the Law ==== The BCRA was designed for a world of broadcast television. The legal and technological landscapes are rapidly shifting, presenting new challenges. * **The Digital Advertising Black Hole:** BCRA's "electioneering communication" definition applies to broadcast, cable, and satellite, but not to the internet. Online political ads on platforms like Facebook, Google, and TikTok are a massive part of modern campaigns but are governed by a patchwork of weak FEC rules and inconsistent platform policies. This is a major area where the law has not kept up with technology. * **The Push for Reform:** In response to the post-*Citizens United* environment, reformers and many Democratic lawmakers have proposed new legislation. Bills like the For the People Act and the DISCLOSE Act aim to strengthen disclosure rules, overhaul the FEC, and create public financing systems to empower small donors. These efforts face steep political opposition. * **The Supreme Court's Direction:** The current Supreme Court has shown little appetite for revisiting *Citizens United* or allowing more regulation of money in politics. Future campaign finance battles are likely to focus on the last remaining pillar of the system: disclosure requirements. The Bipartisan Campaign Reform Act stands as a monumental attempt to solve a problem as old as the republic: the influence of money on power. Its journey—from ambitious reform to partial dismantlement by the courts—is the central story of modern American democracy and the ongoing debate over the price of free speech. ===== Glossary of Related Terms ===== * **[[campaign_finance_law]]:** The body of laws and regulations governing how political campaigns are funded. * **[[coordination]]:** The legally restricted collaboration between a candidate's campaign and an independent expenditure group. * **[[dark_money]]:** Political spending by non-profit organizations that are not required to disclose their donors. * **[[electioneering_communication]]:** A specific type of political ad defined by the BCRA that airs close to an election. * **[[express_advocacy]]:** Political advertising that explicitly and unambiguously advocates for the election or defeat of a candidate using "magic words." * **[[federal_election_campaign_act_(feca)]]:** The 1970s-era law that created the basic framework for modern federal campaign finance regulation. * **[[federal_election_commission_(fec)]]:** The independent U.S. government agency created to enforce federal campaign finance law. * **[[first_amendment]]:** The constitutional amendment protecting rights including freedom of speech, press, and assembly. * **[[hard_money]]:** Political donations that are subject to federal limits and disclosure requirements. * **[[independent_expenditure]]:** A political expenditure made to support or oppose a candidate that is made without any coordination with the candidate's campaign. * **[[issue_advocacy]]:** Ads that aim to educate the public on a particular issue without specifically advocating for a candidate's election or defeat. * **[[political_action_committee_(pac)]]:** An organization that pools campaign contributions from members and donates those funds to campaigns for or against candidates. * **[[soft_money]]:** Funds raised by political parties that were not subject to federal contribution limits or reporting requirements; banned by the BCRA. * **[[super_pac]]:** A type of independent political action committee which may raise unlimited sums of money from corporations, unions, and individuals. * **[[501(c)(4)_organization]]:** A tax-exempt "social welfare" non-profit that can engage in some political activity without disclosing its donors. ===== See Also ===== * [[citizens_united_v._fec]] * [[federal_election_commission_(fec)]] * [[first_amendment]] * [[political_action_committee_(pac)]] * [[super_pac]] * [[campaign_finance_law]] * [[soft_money]]