Highlights of the McCain-Feingold Campaign Finance Reform Act (S.25)

The McCain-Feingold Campaign Finance Reform Act hinges upon Voluntary Spending Limits by candidates for Senate offices. The following are some of those limits:

• Limit overall campaign spending: based on size of state--ranges from $950,000 to $5.5 million.
• Limit personal spending: the lesser of $250,000 or 10% of the general election spending limit.
• Raise 60% of campaign funds from home state contributions

• Thirty minutes free television time: this air time is during primetime and may be taken in 30 second to five minute intervals.
• 50% discount for all other purchased television advertising time (30 days before the primary election and 60 days before the general election).
• Discount on postage rates (for campaign mailings equal to twice the voting age population of that state).

Soft Money

Federal election law prevents individuals and PAC's (Political Action Committees) from contributing more than a certain amount of money ($20,000 for individuals/$15,000 for PAC's) to federal candidates. Soft money enables individuals and PAC's to contribute more than the regulated amount by making the contribution to national political parties. These contributions can then be spent on behalf of a particular candidate.

The McCain-Feingold Act would effectively end soft money contributions by making all contributions subject to those guidelines set by federal election laws.

"Issue Advocacy"

Some interest groups pay a lot of money to advocate the election or defeat of a certain candidate under the guise of "issue advocacy." Television ads aimed at showing a candidate to be pro- or con- where a certain issue is concerned are examples of how interest groups can skirt the limits of campaign contributions. These ads are perfectly legal, and do not count as part of the money raised by a candidate, as long as the interest group does not consult with the candidate about the ad. What results is basically a free ad for a candidate.

The McCain-Feingold Act requires that interest groups notify the Federal Election Commission when they have spent $10,000 or more in an independent expenditure (mainly television ads). The FEC will then notify the targeted candidate (the "issue advocacy" ads are mostly negative--i.e., targeting a candidate), as long that candidate is complying with the spending limits, and they will be able to increase their spending limit by the amount spent by the interest group.

Political Action Committees

Currently, PAC's can contribute $5,000 per election. The McCain-Feingold Act bans PAC contribution to federal candidates or the PAC contribution will be lowered to $1,000 (the same amount as an individual may contribute to a federal candidate). Also, no more than 20% of a Senate candidate's total spending may come from PAC money.

"Franking" Priveleges

Congressional incumbents have the benefit over challengers of being able to utilize mass mailings (franking priveleges). Currently, incumbents are prevented from using mass mailings 90 days before a House election and 60 days before a Senate election. The McCain-Feingold Act prevents incumbents from using their franking priveleges for the entire election year.

The McCain-Feingold Act, also, bans foreign contributions, bans the use of campaign funds for personal use, and enables the FEC to enforce campaign laws the way it was created to do. Candidates who comply with the spending limits but whose opponent does not comply and has exceeded the limit for that state, will be able to accept individual contributions of $2,000 and PAC contributions of $5,000.

Since Senators McCain and Feingold introduced their campaign finance reform bill it has received some revision not noted here. Go here to see the how the original bill and the "substitute" compare.

"...Our goal is to do basically two things. It's to limit the effect of money in politics, and the other is to level the playing field between challenger and incumbent."

John McCain