The DISCLOSE Act: Overview and Analysis

R. Sam Garrett
Analyst in American National Government

L. Paige Whitaker
Legislative Attorney

Erika K. Lunder
Legislative Attorney

As it has periodically for decades, Congress is again considering how or whether to regulate campaign financing. The latest iteration of the debate over which kinds of groups should be permitted to spend funds on political advertisements, and how so, was renewed on January 21, 2010, when the Supreme Court of the United States issued its decision in Citizens United v. Federal Election Commission. Following Citizens United, corporations and labor unions may now fund political advertisements explicitly calling for election or defeat of federal candidates— provided that the advertisements are not coordinated with the campaign. The legislative response receiving the most attention to date—and the emphasis of this report—is the House version of the DISCLOSE ("Democracy is Strengthened by Casting Light on Spending in Elections") Act, H.R. 5175, sponsored by Representative Van Hollen. This bill was reported, as amended, by the Committee on House Administration on May 25, 2010. The House of Representatives passed the bill, with additional amendments, on June 24, 2010, by a 219-206 vote. Senator Schumer's companion legislation, S. 3295, which the Senate may consider in the coming weeks, is generally similar to the bill passed by the House. There are, however, some important differences between the two measures, as discussed in this report.

This report provides an overview and analysis of (1) major policy issues addressed in the DISCLOSE Act, which responds to Citizens United; (2) major provisions of H.R. 5175, as passed by the House, S. 3295, as introduced in the Senate, versus current federal law; and (3) issues for congressional consideration and potential implications of enacting or not enacting the DISCLOSE Act. The legislation proposes a combination of disclosure and disclaimer provisions designed to provide additional information to regulators and the public about political advertising that could emerge following Citizens United. The legislation also prohibits government contractors, corporations subject to certain control or ownership by foreign nationals (including some U.S. subsidiaries of foreign corporations), and recipients of Temporary Asset Relief Program (TARP) funds from making certain political expenditures. A variety of issues for Congress discussed in this report, such as how various provisions in the bill might be interpreted or implemented, may be relevant for House and Senate consideration of the DISCLOSE Act.


Date of Report: July 16, 2010
Number of Pages: 37
Order Number: R41264
Price: $29.95

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