Campaign finance reform in the United States seeks to regulate the flow of money in elections to enhance transparency, reduce undue influence from wealthy donors, and promote equitable participation. Recent developments under President Donald Trump's second term have spotlighted debates over reforming or relaxing existing limits, particularly through proposals tied to Project 2025, which advocates higher contribution caps and structural changes to oversight bodies like the Federal Election Commission (FEC).
These discussions build on decades of legislative evolution, from post-Watergate restrictions to Citizens United's expansion of independent spending.
Historical Evolution of Campaign Finance Laws
The Federal Election Campaign Act (FECA) of 1971 established basic disclosure requirements and spending limits for federal candidates, amended in 1974 after Watergate to cap individual contributions at $1,000 per election and create the FEC as a bipartisan enforcer.
Public funding for presidential campaigns emerged via the 1971 Revenue Act, matching small donations up to $250 with federal dollars through 1996, when 49% of Bill Clinton's funds and 94% of Bob Dole's came from this system.
Bipartisan Campaign Reform Act (BCRA) of 2002, or McCain-Feingold, banned soft money unregulated donations to parties and restricted electioneering communications within 60 days of general elections or 30 days of primaries. Buckley v. Valeo (1976) upheld contribution limits as anticorruption measures but struck spending caps as free speech violations, setting precedents for later rulings.
Landmark Supreme Court Decisions
Citizens United v. FEC (2010) invalidated BCRA's corporate and union spending bans on independent ads, deeming them protected speech under the First Amendment, unleashing super PACs that raised $6 billion in 2020 alone. SpeechNow.org v. FEC followed, removing limits on independent expenditures, allowing unlimited donations to these groups.
McCutcheon v. FEC (2014) eliminated aggregate biennial limits ($123,200 individual cap), while base limits per candidate ($2,700 primary/general combined in 2016) persisted. These rulings shifted power to outside spenders, with 2024 cycles seeing $2.3 billion in super PAC funding versus $1.1 billion direct to candidates per OpenSecrets data.
Current Framework and Contribution Limits
Individuals may donate $3,300 per candidate per election in 2024 ($6,600 primary/general), $5,000 per PAC, $10,000 state/local parties, $41,300 national party committees, and $123,900 aggregate ($57,500 candidates/PACs, $66,500 parties). Multicandidate PACs cap at $5,000/candidate, $15,000/party. Super PACs accept unlimited sums but cannot coordinate with campaigns.
Presidential candidates access public matching for donations under $250, general election grants up to $103 million (unclaimed since 2012). Disclosure mandates via FEC forms 3X (24/48-hour independent expenditures over $1,000) ensure transparency, though dark money 501(c)(4) groups report donors quarterly without names.
Role of the Federal Election Commission
The FEC, comprising six commissioners (three per party, four-vote quorum), enforces FECA/BCRA through audits, fines, and civil suits. From 2019-2023, 64% of 451 enforcement matters deadlocked on partisan lines, stalling probes into $100 million+ violations. Annual budget: $78 million, staff 200+, handling 15,000+ disclosures yearly.
Deadlocks often block super PAC coordination cases, with DOJ deferring to FEC interpretations per tradition.
Project 2025 Proposals Under Trump Administration
Project 2025, authored by Heritage Foundation with 31 ex-Trump officials, recommends raising individual contribution limits "much higher" to empower candidates/parties over super PACs, arguing current caps ($3,300) serve no anticorruption role amid $824,600 joint fundraising checks. It critiques limits hamstringing parties against unlimited outside groups post-Citizens United.
Structural FEC reforms target bipartisan balance: presidents negotiate Democratic Senate picks to avoid "extreme overenforcers," potentially stacking against enforcement. Oppose For the People Act changes like independent chair or subpoena power. Direct DOJ to heed FEC deadlocks, limiting criminal probes; reject agency modernization.
In 2025, Trump ousted Democratic FEC chair, raising weaponization fears; executive actions align with Project 2025's deregulation push.
Recent Legislative Efforts
For the People Act (HR1/S1, 2021-2025 cycles) proposed $250 million public funding (6:1 match small donations), $10 million/candidate cap, super PAC donor disclosure, and FEC reforms (independent chair, 2/6 quorum). Stalled in Senate filibuster.
DISCLOSE Act mandates 501(c)(4) donor disclosure over $10,000; passed House thrice, blocked Senate. 2025 House GOP bills cut FEC funding 15%, delay enforcement rules.
Super PACs and Dark Money Dynamics
Super PACs raised $4.1 billion in 2024 midterms/presidential, 15 largest groups spending $500 million+ on ads. Crossroads GPS (Karl Rove) exemplifies 501(c)(4) dark money, $100 million undisclosed 2020. Joint fundraising committees bundle $800,000+ checks to Trump Save America 2024.
Post-2025, aligned super PACs like Make America Great Again Inc. report $1.2 billion, with foreign-influenced funds scrutinized under FECA bans.
State-Level Reforms and Innovations
Twenty states ban corporate contributions; 15 cap super PACs. Seattle's Democracy Dollars ($100 vouchers/voter) boosted turnout 5%; NYC matching (8:1 under $250) amplified small donors 20-fold. Maine/Boise public funding reduces big donor reliance 70%.
Arizona Free Enterprise Club v. Bennett (2011) struck trigger limits matching private funds; upheld vouchers as non-expenditure. High-spending races favor incumbents 91% House, 85% Senate (2018-2024). Super PACs 70% negative ads; 0.1% donors ($2,900+) gave 25% funds 2022. Small donors (<$200) rose to 23% Obama 2012 but lag 15% 2024.
Bipartisan Perspectives on Reform
Republicans argue limits infringe speech, favor super PAC transparency over caps; Democrats push public funding, disclosure to curb corruption. Post-Citizens United, both parties leverage outside groups equally, $15 billion total 2024.
Crypto donations surged $500 million 2024; FEC rules lag, classifying Bitcoin as barter. Online ads evade BCRA via text; AI deepfakes prompt 2025 disclosure bills. Dark money apps bundle anonymously.
Canada bans corporate/union donations, $1,725/party cap; France public funding 50% reimburses; Germany €50,000 cap, broadcaster equality. U.S. outliers with $20 billion+ cycles.
Economic Analyses of Money's Influence
OpenSecrets: $16 spent yields $5,400 policy value (Boxer study); incumbents outraise challengers 4:1. Voter cynicism: 70% believe donors buy results (Pew 2024).
DOJ/FEC fines $50 million 2020-2024; Trump-era cases dropped 30% deadlocks. 2025 ouster signals politicization risks.
Future Prospects for Comprehensive Reform
2026 midterms test Project 2025: higher limits bill introduced House. Public funding via Democracy Vouchers gains AZ/NV traction. SCOTUS Loper Bright (2024) curbs agency deference, aiding deregulation.
Bipartisan disclosure compromise viable; caps unlikely absent amendment. Independent FEC (one per caucus + neutrals); real-time disclosure apps; ban foreign-influenced PACs via ban foreign nationals FECA Section 319.
Voter-owned elections nationwide could shift $10 billion private to public.