How the money gets to federal candidates despite prohibitions on corporations' making contributions or expenditures in the Federal Elections Campaign Act of 1971. Arrow to PACs represents 1974 amendment allowing corporate contributions to Political Action Committees. The soft money arrow represents the 1976 amendment allowing corporate contributions to state political parties. Follow the money trail. That's why campaign election reform has been such a hot issue for decades leading to the Campaign Finance Reform Act of 2002.
HIGHLIGHTS IN BRIEF of Campaign Finance Reform Act of 2002:
- Closed soft money loophole (circled in red in graphic
above)
- Money to political parties can't go even indirectly to federal candidates.
- No individual can donate more than $10,000 to a state, district or local political party.
- Effective Wednesday, November 6, 2002 (day after election day).
- Increased individual contribution limits,
- from $1,000 to $2,000 per candidate;
- from $20,000 to $25,000 to national political parties
- from $25,000 aggregate in 2 years to $37,500 for candidates, PACs and parties.
- aggregate in 2 years set at $57,500 for other contributions, with no more than $37,500 of that to PACs.
- Modified each year for inflation.
- Effective January 1, 2003.
- Increased penalties
- Illegal contributions $25,000 & up in one year: fine & up to 5 years imprisonment.
- Illegal contributions $2,000-$24,999: fine & up to 1 year imprisonment.
- Prohibits issue ads that make reference to a candidate by corporations, unions and some independent groups 60 days leading up to a general election and 30 days before a primary election.
- Under expedited review by the courts in 2003.