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. ====== Independent Expenditure: The Ultimate Guide to Political Spending in America ====== **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 an Independent Expenditure? A 30-Second Summary ===== Imagine your town’s mayoral election is heating up. You passionately support Candidate Jane Doe. You have two ways to use your money to help her. You could write a check directly to her campaign; this is a **contribution**, and it's subject to strict legal limits. Now, imagine a different approach. Without ever speaking to Jane Doe or anyone on her campaign staff, you use your own money to buy a giant billboard on the highway that says, "Vote for Jane Doe, A True Leader for Our Town!" or "Don't Vote for John Smith, He'll Ruin Our Parks!" This billboard is your speech, completely separate from the candidate's campaign. This is the essence of an **independent expenditure**. It is a form of political spending that expressly advocates for the election or defeat of a specific candidate, made without any coordination, consultation, or cooperation with any candidate or their campaign. This distinction is the bedrock of modern American campaign finance law, creating a world of Super PACs and billion-dollar election cycles. * **Key Takeaways At-a-Glance:** * **Unlimited but Separate:** The core principle is that an **independent expenditure** allows individuals, groups, corporations, and unions to spend unlimited amounts of money on political speech, as long as it is not coordinated with a candidate's campaign. [[first_amendment]]. * **Direct Impact on You:** An **independent expenditure** is the legal engine behind most of the political ads you see on TV, hear on the radio, and encounter online during an election season, directly shaping the information and messaging that influences your vote. [[super_pac]]. * **Disclosure is Required:** While spending is unlimited, these expenditures are not entirely secret; federal law requires the person or group making the **independent expenditure** to report the spending and its purpose to the [[federal_election_commission_(fec)]]. ===== Part 1: The Legal Foundations of Independent Expenditures ===== ==== The Story of Independent Expenditures: A Historical Journey ==== The concept of the independent expenditure didn't emerge overnight. It is the result of a century-long tug-of-war between two fundamental American values: the desire to prevent corruption and the constitutional right to [[free_speech]]. The story begins in the early 20th century, an era of powerful corporate trusts and "robber barons." Public fear that massive corporate wealth could buy elections led Congress to pass the [[tillman_act_of_1907]], which banned corporations from making direct monetary contributions to federal candidates. This was the first major attempt to separate corporate money from politics. For decades, campaign finance law evolved slowly. The real earthquake came with the post-Watergate reforms of the 1970s. Congress passed the [[federal_election_campaign_act_(feca)]] amendments of 1974, which created the most comprehensive regulatory system to date. It established the [[federal_election_commission_(fec)]] to enforce the law, set strict limits on contributions from individuals and groups, and, crucially, placed a cap on how much individuals could spend on their own to support a candidate. This spending cap was immediately challenged, leading to the monumental [[supreme_court]] case, `[[buckley_v_valeo]]` (1976). In this ruling, the Court drew a line in the sand that defines our system to this day. It declared that **spending money is a form of speech protected by the [[first_amendment]]**. The Court reasoned that limiting contributions to a campaign was a justifiable way to prevent corruption or the appearance of corruption. However, it found that limiting what individuals could spend **independently** of a campaign did not pose the same risk. The Court argued that if spending is truly independent, it cannot be a *quid pro quo*—a direct exchange of money for a political favor. Thus, the modern legal concept of the **independent expenditure** was born: unlimited in amount, but strictly independent. The system was shaken again by the [[bipartisan_campaign_reform_act_(bcra)]] of 2002, often called McCain-Feingold. This law tried to close loopholes, particularly the use of "soft money" and so-called "electioneering communications"—issue ads that ran close to an election and were seen as thinly veiled campaign ads. This led directly to the most famous (and controversial) campaign finance case in modern history: `[[citizens_united_v_fec]]` (2010). The case involved a conservative non-profit, Citizens United, which wanted to air a critical film about Hillary Clinton. The BCRA would have prohibited it. The Supreme Court, in a landmark 5-4 decision, 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 expenditures in candidate elections. This decision opened the floodgates, paving the way for the creation of [[super_pacs]] and unleashing a torrent of corporate and union spending in elections, all under the banner of the independent expenditure. ==== The Law on the Books: Statutes and Codes ==== The primary federal law governing independent expenditures is the [[federal_election_campaign_act_(feca)]], as amended over the years. The key definition is found in the U.S. Code at `[[52_u.s.c._30101(17)]]`. The statute defines an **independent expenditure** as an expenditure by a person that: * **Expressly advocates** the election or defeat of a clearly identified candidate; and * Is **not made in concert or cooperation with** or at the request or suggestion of such candidate, the candidate’s authorized political committee, or their agents, or a political party committee or its agents. The two bolded phrases are where all the legal battles are fought. * **"Expressly Advocates":** The Supreme Court in `[[buckley_v_valeo]]` initially defined this narrowly as ads containing "magic words" like "Vote For," "Elect," "Support," "Cast Your Ballot For," "Smith for Congress," "Vote Against," "Defeat," "Reject." Over time, the definition has broadened to a "reasonable person" standard—would a reasonable person see the ad as advocating for or against a candidate? * **"Not Made in Concert or Cooperation With":** This is the "wall of separation." FEC regulations detail what constitutes illegal [[coordination]]. It includes any discussion of campaign plans, projects, activities, or needs between the spender and the campaign. If coordination occurs, the expenditure is treated as an in-kind contribution and becomes subject to strict contribution limits and source prohibitions. ==== A Nation of Contrasts: Federal vs. State Rules ==== While federal elections (President, Senate, House) are governed by the FEC, state and local elections have their own sets of rules, often administered by a state ethics or elections commission. Most states model their laws on the federal framework, but the specifics of disclosure and coordination can vary widely. ^ **Feature** ^ **Federal (FEC) Rules** ^ **California (FPPC)** ^ **Texas (TEC)** ^ **New York (NYSBOE)** ^ | **Who Can Spend?** | Individuals, PACs, Super PACs, Corporations, Unions. | Similar to federal. Corporations and unions can make independent expenditures. | Similar to federal, but with a specific prohibition on corporate and union contributions directly to candidates. | Similar to federal, but with lower contribution limits and a robust public financing system in NYC. | | **Coordination Rules** | Strict, multi-pronged test based on conduct and communication between spender and campaign. | Very strict "coordination" rules. The FPPC actively investigates potential violations. | Rules against coordination exist, but enforcement can be less aggressive than in CA or at the federal level. | State has specific coordination rules, but they have historically been considered weaker than federal standards. | | **Disclosure Timeline** | 48-hour or 24-hour reports required for expenditures made close to an election. Quarterly/monthly reports otherwise. | Aggressive disclosure. Expenditures over $1,000 must be reported within 24 hours at all times. | Requires reporting, but the triggers and timing can be less frequent than in California. | Requires regular reporting through campaign finance filings. | | **What this means for you:** | If you see an ad for a U.S. Senate race, the rules are set by the FEC. The spending group must file a public report in a national database. | In a race for Governor of California, the spending rules are even stricter, and information about who paid for an ad is often available faster. | In a Texas state legislature race, large independent expenditures are allowed, but the public may have a slightly harder time tracking them in real-time. | In a race for Mayor of New York City, the interplay between independent spending and the city's public campaign financing system is a major factor. | ===== Part 2: Deconstructing the Core Elements ===== ==== The Anatomy of an Independent Expenditure: Key Components Explained ==== To truly understand this concept, you have to break it down into its four essential parts. If any one of these parts is missing or fails a legal test, the spending is not a true independent expenditure. === Element 1: Express Advocacy === This is the **content** of the communication. The ad, mailer, or online post must, at its core, be about an election. It must ask a voter to take a specific action: elect a candidate or defeat a candidate. It cannot be a general "issue ad" that talks about a policy without mentioning an election or a candidate's fitness for office. For example: * **Independent Expenditure (Express Advocacy):** "Senator Smith voted against clean air. We need a change. **Vote for Challenger Jones on November 5th.**" * **Not an Independent Expenditure (Issue Advocacy):** "Tell Senator Smith to support the Clean Air Act." This distinction can be blurry. Groups often create ads that praise or attack a candidate's record right before an election without using the "magic words." These are often classified as [[electioneering_communications]], which have their own set of rules, but the core principle of express advocacy is the clearest sign of an independent expenditure. === Element 2: The Wall of Separation (Independence) === This is the most critical and controversial element. For spending to be "independent," there must be a complete wall between the spender and the candidate they are trying to help. If that wall is breached, the spending becomes an illegal, oversized [[in-kind_contribution]]. What breaks the wall? The [[federal_election_commission_(fec)]] has a three-part test for [[coordination]]: 1. **The Payment Standard:** The ad is paid for by someone other than the campaign. (This is always true for an independent expenditure). 2. **The Content Standard:** The ad is an election-related communication. (Also always true). 3. **The Conduct Standard:** This is the key. Coordination occurs if the spender engages in specific conduct, such as: * **Request or Suggestion:** The campaign asks the outside group to run the ad. * **Material Involvement:** The campaign is involved in creating, producing, or distributing the ad. * **Strategic Discussions:** The campaign and the spender discuss the campaign's strategy, polling data, or advertising plans. * **Common Vendor:** The campaign and the spender use the same political consultant, and that consultant shares strategic information. **Hypothetical Example:** A Super PAC wants to run an ad attacking a candidate's opponent. If the Super PAC's manager calls the candidate's campaign manager and asks, "What attack line would be most effective?"—that is **illegal coordination**. The Super PAC's spending would now be considered a contribution, violating the law. === Element 3: The Source of Funds === This component answers the question: **who can spend?** Thanks to `[[citizens_united_v_fec]]`, the list is long: * **Individuals:** Any U.S. citizen or permanent resident can spend unlimited amounts of their own money. * **Corporations:** For-profit and non-profit corporations can use their general treasury funds. * **Labor Unions:** Unions can use their treasury funds. * **Political Action Committees (PACs):** Traditional [[political_action_committee|PACs]] that also contribute to candidates can make them. * **Super PACs:** These committees, officially known as "independent-expenditure-only committees," exist solely to raise and spend unlimited funds on these communications. This is their entire purpose. === Element 4: Public Disclosure === This is the element of **transparency**. The Supreme Court has repeatedly stated that disclosure is a vital public interest that justifies some burdens on speech. It allows voters to "consider the source" of the messaging. * **FEC Reporting:** Any group or person who spends over a certain threshold ($250 per year) on independent expenditures must file a report with the FEC. * **24-Hour and 48-Hour Reports:** To provide timely information as an election nears, the rules get stricter. Expenditures of $1,000 or more made between 20 days and 24 hours before an election must be reported within **24 hours**. Expenditures of $10,000 or more made at any other time up to the 20-day mark must be reported within **48 hours**. * **Disclaimers:** The communications themselves must include a "paid for by" disclaimer, clearly stating who is responsible for the ad. For example, "Paid for by Americans for a Better Tomorrow. Not authorized by any candidate or candidate's committee." ==== The Players on the Field: Who's Who in Campaign Finance ==== * **[[Federal_Election_Commission_(FEC)]]:** The bipartisan federal agency created to enforce and interpret U.S. campaign finance law. It writes the regulations, receives the disclosure reports, and can investigate and prosecute violations. * **[[Super_PACs]]:** The heavy hitters. These organizations can accept unlimited contributions from individuals, corporations, and unions and spend unlimited sums to support or oppose candidates. Their only major restriction is that they cannot coordinate with campaigns. * **[[501(c)(4)_Organizations]]:** These are non-profit "social welfare" organizations. Unlike Super PACs, they do not have to disclose their donors. They can make independent expenditures, but politics cannot be their primary purpose. When they spend money on ads, it's often referred to as "dark money" because the ultimate source of the funds is hidden. * **Campaigns and Candidates:** The subjects of all this spending. They are legally barred from coordinating with these outside groups but often benefit immensely from their efforts. * **Watchdog Groups:** Non-partisan organizations like the Center for Responsive Politics (OpenSecrets.org) or the Campaign Legal Center that analyze FEC data and track political spending to provide public transparency. ===== Part 3: Your Practical Playbook ===== ==== Step-by-Step: How to Follow the Money and Understand Political Ads ==== As a citizen and voter, you are the target of these expenditures. Knowing how to analyze what you're seeing is a powerful tool. === Step 1: Identify the Spender and Read the Disclaimer === The first and most important step is to look for the disclaimer. By law, it must be on the ad. It will say "Paid for by [Name of Group]." Ignore the group's positive-sounding name (e.g., "Americans for Sunshine and Puppies"). The name is marketing. The key is to identify the **legal entity** paying for the message. Note the exact name. === Step 2: Use the FEC's Public Database === The FEC website (FEC.gov) is your best friend. It has a searchable database of independent expenditures. - Go to FEC.gov. - Look for data on "Independent Expenditures." - You can search by the name of the group you identified in Step 1. - The search results will show you exactly how much the group has spent, which candidate they supported or opposed, and when they spent it. This allows you to see if the group is a major player spending millions or a smaller one. === Step 3: Distinguish the Message from the Messenger === Remember the "wall of separation." The ad you are seeing is **not** from the candidate. Candidates will often try to distance themselves from negative ads run by their supporters, saying, "I have no control over what outside groups do." Legally, this is true. You must evaluate the ad's claims on their own merit, knowing they were produced by a third party whose motivations may differ from the candidate's. === Step 4: Look for Red Flags of Potential Coordination === While hard to prove, you can sometimes spot signs that the "independence" is a sham. A major red flag is if a Super PAC uses a large amount of b-roll footage (non-primary video) that is only available from the candidate's own campaign website. While campaigns are allowed to post footage publicly for anyone to use, it can be a sign that the group is simply repackaging the campaign's preferred messaging. ==== Essential Paperwork: Key FEC Forms ==== Understanding the system means knowing the paperwork. These are the public documents that make transparency possible. * **FEC Form 5: Report of Independent Expenditures Made by Persons Other Than Political Committees** * **Purpose:** This form is used by individuals, corporations, unions, and other groups that are **not** registered political committees to disclose their spending. If a private citizen decides to spend $10,000 on newspaper ads, they would file a Form 5. * **Where to find it:** Searchable on the FEC website. It discloses the spender's name, the amount spent, the date, and the candidate targeted. * **FEC Schedule E: Itemized Independent Expenditures** * **Purpose:** This is not a standalone form but a schedule attached to the regular reports filed by registered committees, like [[super_pacs]] and traditional PACs (e.g., Form 3X). This is where a Super PAC lists out every independent expenditure it makes. * **Where to find it:** On the FEC website, by looking up the filings for a specific Super PAC. This provides a comprehensive list of all their spending over a reporting period. ===== Part 4: Landmark Cases That Shaped Today's Law ===== ==== Case Study: Buckley v. Valeo (1976) ==== * **The Backstory:** After the Watergate scandal, Congress passed the [[federal_election_campaign_act_(feca)]] amendments, which imposed sweeping restrictions on campaign finance, including limiting how much an individual could contribute and how much they could spend independently. * **The Legal Question:** Did limiting contributions and expenditures violate the [[first_amendment]] right to free speech? * **The Holding:** The Supreme Court delivered a split verdict that created our modern framework. It held that **limits on contributions were constitutional** to prevent corruption. However, it ruled that **limits on independent expenditures were unconstitutional**. The court reasoned that independent spending does not create the same risk of a *quid pro quo* exchange and that restricting it heavily burdened free speech. * **Impact on You Today:** This case established the core principle that "money is speech" in the political context and created the legal distinction between contributions and expenditures that allows for unlimited spending by outside groups. ==== Case Study: Citizens United v. FEC (2010) ==== * **The Backstory:** The [[bipartisan_campaign_reform_act_(bcra)]] prohibited corporations and unions from using their general funds for "electioneering communications" within 30 days of a primary or 60 days of a general election. A non-profit group, Citizens United, made a documentary critical of Hillary Clinton and wanted to broadcast it during this window. * **The Legal Question:** Does the BCRA's prohibition on corporate and union independent expenditures violate the First Amendment? * **The Holding:** In a seismic 5-4 decision, the Court ruled that it did. The majority opinion stated that the government cannot restrict political speech based on the speaker's identity—whether it's an individual or a corporation. It overturned precedent and held that corporations and unions have a right to spend unlimited sums from their treasuries on independent expenditures. * **Impact on You Today:** This ruling directly created the modern campaign finance landscape. It gave birth to [[super_pacs]] and is the reason you see billions of dollars in corporate and union-funded advertising every election cycle. ==== Case Study: SpeechNow.org v. FEC (2010) ==== * **The Backstory:** Immediately following `[[citizens_united_v_fec]]`, a group called SpeechNow.org wanted to pool money from individuals to make independent expenditures. FEC rules at the time limited how much any individual could give to a political committee ($5,000). * **The Legal Question:** If a group only makes independent expenditures, can the government limit how much individuals contribute to that group? * **The Holding:** A D.C. Circuit Court of Appeals ruled no. Applying the logic of *Citizens United* and *Buckley*, the court reasoned that if there is no risk of corruption from the group's ultimate spending, there can be no risk of corruption from the contributions *to* that group. * **Impact on You Today:** This is the case that officially created the **Super PAC**. It established that any committee that *only* makes independent expenditures can accept unlimited contributions from individuals, corporations, and unions. ===== Part 5: The Future of Independent Expenditures ===== ==== Today's Battlegrounds: Current Controversies and Debates ==== The world of independent expenditures is far from settled. The central debate revolves around the tension between free speech and anti-corruption. * **"Dark Money" and Disclosure:** The biggest fight is over spending by [[501(c)(4)_organizations]] and other non-profits that do not have to disclose their donors. Critics argue this allows secret money to influence elections, while supporters claim donor privacy is essential for free association. Proposed laws like the DISCLOSE Act aim to shed more light on these sources. * **The Definition of "Coordination":** Many argue that the legal definition of [[coordination]] is too narrow and full of loopholes. The idea that a candidate and a Super PAC run by their former campaign manager can truly be "independent" strikes many as a fiction. Reformers want to broaden the definition to capture more real-world strategic cooperation. * **The Rise of "Scam PACs":** A growing number of committees, particularly Super PACs, are being accused of being "scam PACs" that raise large sums of money by promising to support a candidate or cause, but then spend most of it on salaries and fundraising costs, with very little going to actual political advertising. ==== On the Horizon: How Technology and Society are Changing the Law ==== The future of independent expenditures will be shaped by technology. * **Digital Micro-targeting:** The ability of groups to use data from social media and other sources to send highly targeted, personalized political ads is a new frontier. This makes it harder for the public and watchdog groups to track what messages voters are seeing, challenging the principle of broad public disclosure. * **Artificial Intelligence (AI):** The rise of AI-generated content (deepfakes, realistic audio) creates a massive new threat. Imagine an independent expenditure in the final hours of a campaign that uses a convincing but fake video of a candidate. The law is currently unprepared to handle the speed and scale of such disinformation. * **Cryptocurrency:** The potential for anonymous contributions and spending via cryptocurrency poses a direct threat to the entire disclosure regime. Regulators at the [[federal_election_commission_(fec)]] are only beginning to grapple with how to apply century-old laws to decentralized, digital currencies. ===== Glossary of Related Terms ===== * **[[bipartisan_campaign_reform_act_(bcra)]]:** Also known as McCain-Feingold, the 2002 law that regulated "soft money" and "electioneering communications." * **[[coordination]]:** Illegal cooperation between a candidate's campaign and an outside spending group that turns an independent expenditure into a contribution. * **[[contribution]]:** Money, goods, or services given directly to a candidate's committee, subject to strict limits. * **[[dark_money]]:** Political spending by a group that is not required to disclose the sources of its funding. * **[[electioneering_communication]]:** An ad that refers to a federal candidate, is targeted to the electorate, and runs within 30 days of a primary or 60 days of a general election. * **[[express_advocacy]]:** Communication that explicitly asks voters to elect or defeat a particular candidate. * **[[federal_election_campaign_act_(feca)]]:** The foundational 1971 law governing U.S. federal campaign finance. * **[[federal_election_commission_(fec)]]:** The independent regulatory agency charged with administering and enforcing federal campaign finance law. * **[[first_amendment]]:** The constitutional amendment that protects freedom of speech, a central pillar of campaign finance jurisprudence. * **[[in-kind_contribution]]:** A non-monetary contribution of goods or services, valued at its market price. * **[[political_action_committee]]:** An organization that raises money privately to influence elections or legislation, subject to contribution limits. * **[[soft_money]]:** Funds raised by political parties for "party-building" activities, a loophole largely closed by BCRA. * **[[super_pac]]:** An "independent-expenditure-only committee" that can raise and spend unlimited sums of money. * **[[supreme_court]]:** The final arbiter of campaign finance law, whose decisions have profoundly shaped the legal landscape. ===== See Also ===== * [[campaign_finance_law]] * [[first_amendment]] * [[super_pac]] * [[federal_election_commission_(fec)]] * [[citizens_united_v_fec]] * [[buckley_v_valeo]] * [[coordination]]