Changes

There are two types of funds:  [[hard money]] and [[soft money]].  In simple terms, hard money consists of donations to campaigns, while soft money consists of other expenditures that do not "expressly advocate" the election or defeat of a candidate.

There are two types of funds:  [[hard money]] and [[soft money]].  In simple terms, hard money consists of donations to campaigns, while soft money consists of other expenditures that do not "expressly advocate" the election or defeat of a candidate.

Federal law prohibits corporations and unions from donating directly to a candidate for him to spend on his campaign, but most states allow for some types of corporate donations.  Small corporations that satisfy the "MCFL" exception are allowed to donate to candidates.  Instead, corporations and unions establish [[political action committee]]s (PACs) for raising money for the purpose of donating to campaigns.

Until it [[Citizens United v. FEC|was overturned]] in January 2010, Federal law prohibited corporations and unions from donating directly to a candidate for him to spend on his campaign, but most states allowed for some types of corporate donations.  Small corporations that satisfy the "[[Federal Election Commission v. Massachusetts Citizens for Life|MCFL]]" exception have been allowed to donate to candidates since 1986.  Instead, corporations and unions were forced to establish [[political action committee]]s (PACs) for raising money for the purpose of donating to campaigns - a restriction which the Supreme Court has since called "burdensome alternatives... expensive to administer and subject to extensive regulations... onerous"<ref>[[Citizens United v. FEC]], January 2010</ref>.

Incumbents have an incentive to restrict the ability of challengers to raise money, and also to prevent independent groups to spend money criticizing the incumbents.  Repeatedly legislators have passed limitations on campaign spending, but some of those restrictions have been declared unconstitutional under the [[Free Speech Clause]] of the Constitution.<ref>''Buckley v. Valeo'' (1976).</ref>

Incumbents have an incentive to restrict the ability of challengers to raise money, and also to prevent independent groups to spend money criticizing the incumbents.  Repeatedly legislators have passed limitations on campaign spending, but many of those restrictions have been declared unconstitutional under the [[Free Speech Clause]] of the Constitution.<ref>''[[Buckley v. Valeo]]'' (1976); [[Federal Election Commission v. Wisconsin Right to Life]], 2007; [[Citizens United v. FEC]], January 2010</ref>

The '''McCain-Feingold''' Campaign Finance Act imposed strict prohibitions on issue ads by any person or entity other than the candidates with two or three months prior to an election.  President [[George W. Bush]] signed it into law even though he had spoken against it in [[United States presidential election, 2000|his campaign]], and even though he declared in his [[signing statement]] that he considered parts of it unconstitutional under the [[First Amendment]].  The [[U.S. Supreme Court]] eventually declared an application of this law to be unconstitutional.  The Supreme Court is currently (as of January 15, 2010) considering other parts in the case [[Citizens United v. FEC]].

The '''McCain-Feingold''' Campaign Finance Act imposed strict prohibitions on issue ads by any person or entity other than the candidates with two or three months prior to an election.  President [[George W. Bush]] signed it into law even though he had spoken against it in [[United States presidential election, 2000|his campaign]], and even though he declared in his [[signing statement]] that he considered parts of it unconstitutional under the [[First Amendment]].  The [[U.S. Supreme Court]] has declared much of this law unconstitutional.

== References ==

== References ==