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Friday, October 1, 2010

Campaign Finance: Potential Legislative and Policy Issues for the 111th Congress


R. Sam Garrett
Analyst in American National Government

Drawing from recent legislative and campaign activities, this report provides an overview of selected campaign finance policy issues that may receive, or have received, attention during the 111th Congress. Congress continues to consider the Supreme Court’s January 21, 2010, ruling in Citizens United v. Federal Election Commission. The decision has shaped much of the legislative debate on campaign finance issues during the second session of the 111th Congress. Thus far, most congressional attention responding to the ruling has focused on the DISCLOSE Act (H.R. 5175; S. 3295). H.R. 5175 passed the House on June 29, 2010. On a related note, on July 29, 2010, the Committee on Financial Services ordered reported H.R. 4790. The bill would require additional disclosure of political expenditures to corporate shareholders and is designed as a partial response to Citizens United.

Other than attention to Citizens United, four aspects of campaign finance policy have been subject to major actions thus far during the 111
th Congress. First, in April 2009, the House passed legislation (H.R. 749) concerning authority to disburse campaign funds after a candidate’s death. Second, on June 10, 2009, the Committee on House Administration favorably reported H.R. 512 (Davis, CA). The bill would amend the Federal Election Campaign Act (FECA) to restrict certain state election officials from involvement in others’ campaigns. Third, on July 28, 2009, the Committee on House Administration held a hearing on H.R. 1826, a bill that would publicly finance House campaigns. Finally, the Senate considered the nomination of John J. Sullivan to be a member of the Federal Election Commission for much of the 111th Congress. However, the President withdrew the nomination on August 5, 2010; as of this writing, no replacement nominee has been announced.

Questions about the health of the presidential public financing system were especially prominent during the 2008 election cycle. Two bills to revamp the presidential public financing system were introduced in late July 2010. Neither H.R. 6061 nor S. 3681 have been the subject of additional action. Also in the 111
th Congress, Representative Cole has H.R. 2992 introduced legislation to repeal public financing for presidential nominating conventions. Legislation on public financing of congressional campaigns was introduced in early 2009 (H.R. 158, H.R. 1826, H.R. 2056, S. 751, and S. 752). H.R. 6116, apparently intended to supersede H.R. 1826, was introduced in September 2010.

The 2008 cycle also witnessed new or expanded techniques for raising and spending money, such as bundling, joint fundraising committees, and hybrid advertising. Remaining issues from the 110
th Congress, such as electronic filing of Senate campaign finance reports (S. 482 and S. 1858 in the 111th Congress), may also receive renewed scrutiny. Other issues, such as 527 organizations, may also be addressed. Congressional oversight of the FEC could also be on the legislative agenda.

Some of the issues discussed in this report have only recently received substantial attention. Others have been long-running sources of controversy. All appear likely to remain prominent policy issues. Whether Congress decides to pursue these or other campaign finance issues, common questions about the role of money in politics, transparency, and the need for additional regulation are likely to shape the debate.



Date of Report: September 17, 2010
Number of Pages: 28
Order Number: R40091
Price: $29.95

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