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 DISCLOSE ("Democracy is Strengthened by Casting Light on Spending in Elections") Act. The House measure, H.R. 5175, sponsored by Representative Van Hollen, 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 that was first introduced in the Senate, S. 3295, is generally similar to the bill passed by the House. The same is true for S. 3628, a second measure—apparently intended to supersede S. 3295—that Senator Schumer introduced on July 21, 2010. There are, however, some important differences across the three bills, as discussed in this report. 

The bills appear to be aimed primarily at non-campaign actors, particularly corporations, unions, and tax-exempt organizations. The bills propose a combination of disclosure provisions and disclaimer provisions (which are sponsorship information included within a communication) that would apply to these entities and are designed to give regulators and the public additional information about political advertising that could emerge following Citizens United. The legislation also prohibits certain government contractors, foreign-controlled or owned corporations (including some U.S. subsidiaries of foreign corporations), and prospective recipients of Temporary Asset Relief Program (TARP) funds from making certain political expenditures. 

The bills do not increase contribution limits for candidate campaigns; they also generally do not address other political committees—parties and PACs. A notable exception would permit parties to make additional coordinated expenditures supporting their candidates. This is the only instance in which the bills explicitly allow for more political spending than would be possible under the status quo. 

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, and S. 3295 and S. 3628 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.


Date of Report: July 26, 2010
Number of Pages: 41
Order Number: R41264
Price: $29.95

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