The Federal Election Commission (FEC) is the independent regulatory agency charged with administering and enforcing the federal campaign finance law. The FEC has jurisdiction over the financing of campaigns for the U.S. House, the U.S. Senate, the Presidency and the Vice Presidency.
Federal campaign finance law covers three broad subjects, which are described in this brochure:
This brochure provides general information only. The descriptions of the law and the Commission are not intended to be exhaustive.
For more information on the subjects discussed in this brochure, call, write or visit:
Federal Election Commission
999 E Street, N.W.
Washington, D.C. 20463
800/424-9530
202/219-3420 (local)
202/219-3336 (for the hearing impaired)
As early as 1905, President Theodore Roosevelt recognized the need for campaign finance reform and called for legislation to ban corporate contributions for political purposes. In response, Congress enacted several statutes between 1907 and 1966 which, taken together, sought to:
In 1971, Congress consolidated its earlier reform efforts in the Federal Election Campaign Act (FECA), instituting more stringent disclosure requirements for federal candidates, political parties and political action committees (PACs). Still, without a central administrative authority, the campaign finance laws were difficult to enforce.
Following reports of serious financial abuses in the 1972 Presidential campaign, Congress amended the FECA in 1974 to set limits on contributions by individuals, political parties and PACs. The 1974 amendments also established an independent agencythe Federal Election Commission (FEC) to enforce the law, facilitate disclosure and administer the public funding program. Congress made further amendments to the FECA in 1976 following a constitutional challenge in the Supreme Court case Buckley v. Valeo ; major amendments were also made in 1979 to streamline the disclosure process and expand the role of political parties.
Public funding of federal elections originally proposed by President Roosevelt in 1907 began to take shape in 1971 when Congress set up the income tax checkoff to provide for the financing of Presidential general election campaigns and national party conventions. Amendments to the Internal Revenue Code in 1974 established the matching fund program for Presidential primary campaigns.
The FEC opened its doors in 1975 and administered the first publicly funded Presidential election in
1976.
The Commission
Commissioners
The FEC has six voting members who serve staggered six-year terms. The Commissioners are appointed by the President with the advice and consent of the U.S. Senate. No more than three Commissioners may belong to the same political party. The
Commissioners elect two members each year to act as Chairman and Vice Chairman.
The Commission normally holds a public meeting each week. At this meeting, the Commissioners adopt new regulations, issue advisory opinions, approve audit reports concerning Presidential campaign committees, and take other actions to administer the campaign finance law.
In addition, the Commissioners meet regularly in closed sessions to discuss pending enforcement actions, litigation and personnel matters.
The basic provisions of the FECA are described below.
Disclosure
The FECA requires candidate committees, party committees and PACs to file periodic reports disclosing the money they raise and spend. Candidates must
identify, for example, all PACs and party committees
that give them contributions, and they must identify
individuals who give them more than $200 in a year.
Additionally, they must disclose expenditures exceed
ing $200 per year to any individual or vendor.
Contribution Limits
The FECA places limits on contributions by individuals and groups to candidates, party committees and PACs. The chart below shows how the limits apply to
the various participants in federal elections.
Prohibited Contributions and Expenditures
The FECA places prohibitions on contributions and
expenditures by certain individuals and organizations.
The following are prohibited from making contributions or expenditures to influence federal elections:
Furthermore, with respect to federal elections:
In addition to the above prohibitions on contributions and expenditures in federal election campaigns, the FECA also prohibits foreign nationals, national banks and other federally chartered corporations from making contributions or expenditures in connection with state and local elections.
Independent Expenditures
Under federal election law, an individual or group
(such as a PAC) may make unlimited "independent
expenditures" in connection with federal elections.
An independent expenditure is an expenditure for a communication which expressly advocates the election or defeat of a clearly identified candidate and which is made independently from the candidate's campaign. To be considered independent, the communication may not be made with the cooperation or consent of the candidate or his or her campaign; nor may it be made upon a request or suggestion of either the candidate or the campaign. While there is no limit on how much anyone may spend on an independent expenditure, the law does require persons making independent expenditures to report them and to disclose the sources of the funds they used. The public can review these reports at the FEC's Public Records Office.
Corporate and Union Activity
Although corporations and labor organizations may
not make contributions or expenditures in connection
with federal elections, they may establish PACs. Corporate and labor PACs raise voluntary contributions from a restricted class of individuals and use
those funds to support federal candidates and political
committees.
Apart from supporting PACs, corporations and labor organizations may conduct other activities related to federal elections, within certain guidelines. For more information, call the FEC or consult 11 CFR Part 114.
Political Party Activity
Political parties are active in federal elections at the
local, state and national levels. Most party committees
organized at the state and national levelsas well as
some committees organized at the local levelare required to register with the FEC and file reports
disclosing their federal campaign activities.
Party committees may contribute funds directly to federal candidates, subject to the contribution limits. National and state party committees may make additional "coordinated expenditures," subject to limits, to help their nominees in general elections. Finally, state and local party committees may spend unlimited amounts on certain grassroots activities specified in the law without affecting their other contribution and expenditure limits (for example, voter drives by volunteers in support of the party's Presidential nominees and the production of campaign materials for volunteer distribution).
Party committees must register and file disclosure reports with the FEC once their federal election activities exceed certain dollar thresholds specified in the law.
The Presidential Election Campaign Fund Act
Under the Internal Revenue Code, qualified Presidential candidates receive money from the Presidential Election Campaign Fund, which is an account on the books of the U.S. Treasury.
The Fund is financed exclusively by a voluntary tax checkoff. By checking a box on their income tax returns, individual taxpayers may direct $3 of their tax to the Fund (up to $6 for joint filers). Checking the box does not increase the amount a taxpayer owes or reduce his or her refund; it merely directs that three dollars from the U.S. Treasury be used in Presidential elections. Checkoff funds may not be spent for other federal programs.
The funds are distributed under three programs:
Primary Matching Payments
Eligible candidates in the Presidential primaries may
receive public funds to match the private contributions
they raise. While a candidate may raise money from
many different sources, only contributions from individuals are matchable; contributions from PACs
and party committees are not. Furthermore, while an
individual may give up to $1,000 to a primary candidate, only the first $250 of that contribution is matchable.
To participate in the matching fund program, a candidate must demonstrate broad-based support by raising more than $5,000 in matchable contributions in each of 20 different states. Candidates must agree to use public funds only for campaign expenses, and they must comply with spending limits. Beginning with a $10 million base figure, the overall primary spending limit is adjusted each Presidential election year to reflect inflation. In 1996, the limit was $30.91 million.
General Election Grants
The Republican and Democratic candidates who win
their parties' nominations for President are each eligible to receive a grant to cover all the expenses of
their general election campaigns. The basic $20 million grant is adjusted for inflation each Presidential
election year. In 1996, the grant was $61.82 million.
Nominees who accept the funds must agree not to raise private contributions (from individuals, PACs or party committees) and to limit their campaign expenditures to the amount of public funds they receive. They may use the funds only for campaign expenses.
A third party Presidential candidate may qualify for some public funds after the general election if he or she receives at least five percent of the popular vote.
Party Convention Grants
Each major political party may receive public funds to
pay for its national Presidential nominating convention. The statute sets the base amount of the grant at
$4 million for each party, and that amount is adjusted
for inflation each Presidential election year. In 1996,
the major parties each received $12.36 million.
Other parties may also be eligible for partial public financing of their nominating conventions, provided that their nominees received at least five percent of the vote in the previous Presidential election.
The FEC administers the public funding program by determining which candidates are eligible to receive the funds. The Secretary of the Treasury makes the payments.
Committees receiving public funds must keep detailed records of their financial activities. After the elections, the FEC audits each publicly funded committee. If an audit reveals that a committee has exceeded the spending limits or used public funds for impermissible purposes, the committee must pay back an appropriate amount to the U.S. Treasury.
Public Records Office
1. Campaign Finance Materials
Reports filed by registered political committees (such
as candidates' campaigns, party committees and PACs) are available for inspection and copying in the
FEC's Public Records Office. The Commission makes the reports public within 48 hours after their receipt.
Visitors may access the FEC's computer database, which contains helpful indexes on several types of campaign finance activities (large contributions, PAC contributions, etc.). The agency's database is also accessible from the Secretary of State's office in many state capitals.
Members of the public who are equipped with a computer modem may reach the FEC's database by subscribing to the on-line Direct Access Program (DAP).
2. Other Documents
In addition to campaign finance reports (dating back
to 1972), the Public Records Office makes available:
3. How to Get Copies of Documents
The Public Records Office is open from 9 to 5 on
weekdays (with extended hours during filing periods).
The Office operates as a library facility, and staff
members are on hand to assist visitors in locating
documents and using the computer. Most document requests may also be made by telephone or mail. Click here for the address and phone numbers.
Copies of reports filed by federal candidates are also available in the Secretary of State's office in each candidate's home state and in the public records office of the Clerk of the House or the Secretary of the Senate, as appropriate.
Press Assistance
The FEC's Press Office also promotes disclosure by
issuing press releases covering statistical information
and the agency's activities.
Reporters inquiring about disclosure, enforcement actions and other aspects of the law should ask for the Press Office when calling or visiting the agency.
Regulations
The Commission clarifies the FECA and the public
funding statutes through regulations, codified in Title
11 of the Code of Federal Regulations. Copies of Title 11 are available from the Commission free of charge.
Advisory Opinions
The Commission issues written advisory opinions (AOs) to persons seeking guidance on the application
of the campaign finance law to their own specific activities.
Individuals and organizations involved in an activity approved in an AO may rely on the AO without risk of enforcement action by the FEC, provided that they act in accordance with the AO's provisions.
The FEC places a high priority on helping candidates and committees understand and voluntarily comply with the law. To achieve this goal, the Commission produces videotapes and free publications, and hosts conferences in major cities to educate campaign workers, PACs and party committees about the law. In addition, anyone may obtain personal assistance by calling the FEC's toll free number (800/424-9530) or by visiting the agency's Information Division.
Review of Reports
FEC staff review each report filed by federal candidates and committees to ensure that they have complied with the disclosure requirements and the
limits and prohibitions on contributions.
In some cases, FEC staff refer apparent violations or deficiencies in reporting to the Commission for enforcement action (see below), but reporting problems are often resolved by asking filers to voluntarily correct or clarify something in their reports. These communications are always on file in the FEC's Public Records Office.
Enforcement Actions
The Commission has exclusive jurisdiction over the
civil enforcement of the federal campaign finance law.
FEC staff may generate enforcement actions (called Matters Under Review, or MURs) in the course of reviewing the reports filed by committees. In addition, individuals and groups outside the agency may initiate MURs by filing complaints (see below). Other government agencies may also refer enforcement matters to the FEC.
If four of the six Commissioners vote to find reason to believe that a violation of the law has occurred, the Commission may investigate the matter. If the investigation confirms that the law has been violated, the Commission tries to resolve the matter by reaching a conciliation agreement with the respondents. The agreement may require them to pay a civil penalty and take other remedial steps. If an agreement cannot be reached, however, the Commission may file suit against the appropriate persons in a U.S. District Court.
As required by law, the Commission keeps enforcement matters strictly confidential until they are concluded. Once the Commission has closed a MUR, the pertinent documents are placed on the public record.
Filing a Complaint
Anyone who believes that a violation of the law has
occurred may file a complaint with the FEC. The complaint should contain a statement of facts related
to the alleged violation and any supporting evidence
available.
The complaint must be signed and contain the complainant's name and address. It must also be
sworn to and notarized. A step-by-step description of
the enforcement process is available in the brochure
Filing a Complaint.
How to Get More Information
See the brochure Free Publications for a complete list.
National Clearinghouse on Election Administration
The FEC's Clearinghouse serves as a central exchange for information and research on issues related to the administration of federal elections on the state and local level.
The Clearinghouse's publications, which are available at cost, include comparative studies on ballot access, computerized voting systems, polling place access for the elderly and handicapped, and other studies on election-related topics.
The FEC's depository library, administered by the Office of the General Counsel, is open to the public. The collection includes basic legal research sources and materials emphasizing campaign finance law.
Many election-related topics are not under the jurisdiction of the FEC. Some of these topics are listed below, for your convenience, along with the appropriate agency or officer to contact for more information. (Consult the FEC's Combined Federal/State Disclosure Directory, available from the Public Records Office, for a more exhaustive list of topics and agencies.)
Ballot Access
Contact the Secretary of State in your state capital for
information on how to get your name or party listed on the ballot.
Voter Registration, Polling Times and Places
Contact your city or county clerk.
Absentee Ballots
Contact your city or county clerk. If you are overseas
at election time, your nearest U.S. Consulate can help
you get an absentee ballot.
Military personnel should contact the Defense Department's Federal Voting Assistance Program at 703/695-9330.
Voting Rights
If you believe your right to vote has been denied
due to racial or ethnic discrimination, contact the U.S. Department of Justice, Civil Rights Division, at 202/307-2767.
Election Fraud
If you believe that a federal election has been administered fraudulently, contact the nearest branch of the
Federal Bureau of Investigation (FBI).
Contested Elections
For information on how to challenge the results of a
federal election, contact the Secretary of State in your
state capital.
TV and Radio Broadcasting
Contact the Political Programming Branch of the Federal Communications Commission (FCC) at 202/418-1440.
Phone Solicitations
Contact the FCC's Common Carrier Branch at 202/632-7553.
Personal Finances of Congressional Candidates
Tax Questions
To get a taxpayer ID number for a political committee,
call 800/TAX-FORM.
For other tax-related questions, political committees should contact the Exempt Organizations Technical Division of the Internal Revenue Service at 202/622-8100.
Political Activity of Federal/D.C. Government Employees
Contact the U.S. Office of Special Counsel (Merit
Systems Protection Board) at 800/85-HATCH.