Capitol Split: The Senate and House have Different Ideas on Campaign Finance Reform

Sweeping campaign finance reform laws that were passed in 2002 produced a very different presidential campaign in 2004. We saw and felt the burgeoning influence of the virtual internet campaign, exemplified by Howard Dean’s, and the 527 political organization, like Swift Boat Veterans for Truth.

In addition to evolution in technology and culture, the 2002 Bipartisan Campaign Reform Act (BCRA) was responsible for these changes. The new law limited contributions to candidates and political parties while it ignored donations to political organizations that operate under section 527 of the tax code, creating what some call a "loophole" in campaign financing. As a result, we found billionaire George Soros contributing unlimited sums to MoveOn.org and ACT.

Debating 527s

Many complain that the 527 free-for-all is unfair because it allows the wealthy to have undue influence over elections, but others believe that the rise in 527s has done quite the opposite - they say it’s given the little guys a voice.

Representative Juanita Millender-McDonald (D- California), senior Democrat on the House Administration Committee, says that 527s encouraged and incorporated people who have been left out of the political process in the past. Even so, both the House and the Senate are looking to close the "loophole" that made for a 527-powered presidential campaign.

Capitol split

The House and Senate are heading in opposite directions on the 527 issue. The House wants to return to unlimited contributions for parties and candidates while the Senate hopes to restrict donations to 527s.

House Administration Committee Chairman Bob Ney (R- Ohio) supports legislation that would remove limits on the total amount individuals can give to a federal campaign committee during an election cycle. Currently, BCRA limits an individual’s total campaign contribution to $95,000 every two years, and only $37,500 of this total may be given to candidates.

The Senate, on the other hand, is leaning towards greater restrictions, namely limiting donations to 527 organizations. The Senate measure is sponsored by the creators of BCRA, John McCain (R- Arizona) and Russ Feingold (D- Wisconsin), as well as Trent Lott (R- Mississippi) and Charles Schumer (D- New York). The legislation would establish the same contribution limits for 527s that are imposed on other political groups.

Some claim that limiting 527s in this way is a violation of the First Amendment right to free speech, which is the same argument that BCRA opponents used before the Supreme Court. But the Court was not convinced of the correlation between contributions and political speech and ruled against this reasoning in December 2003.

What do you think?

Is Congress limiting our voice when they limit our dollars? Should 527 organizations like MoveOn.org and Swift Boat Veterans for Truth be subject to contribution limits? How would these campaign finance reforms affect the little guy or the millionaire?

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Article Posted on: 4/27/2005