Public Financing of Presidential Campaigns: Overview and Analysis

R. Sam Garrett
Specialist in American National Government

The presidential public campaign financing program is funded through “checkoff” designations on individual income tax returns. Choosing to participate (or not) in the checkoff does not affect one’s tax liability or refund. Candidates who choose to participate in the program may receive taxpayer-funded matches of privately raised funds during primary campaigns, and grants during the general-election contest. Public funds also subsidize nominating conventions. The public financing system has remained largely unchanged since the 1970s. However, there is general agreement that, if the program is to be maintained, updates are necessary to provide greater financial resources and higher spending limits to participants. Some contend that the program should be curtailed or eliminated.

This report discusses current controversies and arguments for and against public financing of presidential campaigns, legislative history, elements of the program, taxpayer and candidate participation, financial status of the program, recent legislation, and analysis of various policy proposals. If Congress chooses to alter the program, consensus will be necessary in what has historically been a particularly complex and contentious area of campaign finance policy.

On January 26, 2011, the House of Representatives passed H.R. 359 (Cole); that measure would terminate public funding of presidential campaigns. (For a brief discussion, see CRS Report R41604, Proposals to Eliminate Public Financing of Presidential Campaigns, by R. Sam Garrett.) The same day H.R. 359 passed the House, Senator McConnell introduced a companion measure, S. 194. The two measures are virtually identical. Unlike the Senate bill, however, the amended version of the House bill would direct that funds returned to the Treasury be used for deficit reduction. The Senate bill only directs that funds be returned to the Treasury. Another bill, H.R. 3463 (Harper), contains the same provisions as H.R. 359 and would also eliminate the Election Assistance Commission. H.R. 3463 passed the House on December 1, 2011. Finally, Section 620 of the FY2012 Financial Services and General Government appropriations bill (H.R. 2434; Emerson) would prohibit spending appropriated funds to administer the public financing program for the fiscal year.

Taking an alternative approach, legislation introduced by Representative David Price (H.R. 414) would maintain, but alter, the current public financing system. Although several presidential public financing measures were introduced in the 111th and 110th Congresses, none were the subject of substantial legislative activity.

As this report discusses, various options, each with potential strengths and weaknesses, exist for revisiting the presidential public financing system.


Date of Report: December 5, 2011
Number of Pages: 31
Order Number: RL34534
Price: $29.95

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