Money Talks?

By Claire Cho

Campaign finance refers to the raising and spending of funds to elect or defeat political candidates, support parties, or influence policy referendums. The concept has come under intense scrutiny in recent years because many argue that it creates an atmosphere of plutocracy, with campaign funds seemingly equating to votes. Eight in ten U.S. adults say that donors to political campaigns have too much influence on the decisions members of Congress make, and 73% say lobbyists and special interest groups hold too much sway [1]. Nowadays, political candidates appear to speak more directly to donors than to voters, and current regulations exacerbate this dynamic.

The cornerstone of campaign finance reform is the Federal Election Campaign Act (FECA) of 1971, which was amended in 1974 to impose spending limits and create the Federal Election Commission. It was a major step in controlling the influence of outside interests in campaigns after reports of significant financial abuse in the 1972 election [2]. Campaign finance regulation fluctuated over the years, but in a startling shift, the 2010 Citizens United v. Federal Election Commission (FEC) Supreme Court decision established an unlimited ceiling on independent expenditures by corporations and unions, setting a dangerous precedent for unregulated funding in political affairs [2]. Since then, the involvement of campaign finance in American politics has snowballed at an alarming rate, continuing to hinder transparency, representation, and accountability in the U.S. government. The current dysfunctional regulations imposed by the FEC must be heavily re-evaluated if the government is to curb non-state influence.

As public representatives taking money for public campaigns, transparency should be a non-negotiable aspect of donations. A major component of campaign finance is the role of organizations called Super PACs. Super PACs are permitted unlimited campaign fundraising and spending but are legally required to operate independently of candidates, though they rarely do [3]. While Super PACs must disclose their donors, in recent years, they have increasingly reported receiving contributions from nonprofit organizations that are not required to disclose their funding sources—contributions commonly referred to as dark money [4]. Dark money allows private interests to fund political candidates without disclosing their identities [4]. It has become increasingly influential in recent elections, threatening the impartiality of all branches of government, including judicial elections.

The organization responsible for regulating these finances is the FEC, which is composed of a board of three members from each major party [5]. This composition has created a “gridlock” within the FEC, making it highly ineffective and hindering its ability to achieve meaningful outcomes. The result has been large amounts of unregulated funding flowing into the political sphere, leading to money becoming the driving force of modern-day politics. Historically, more than 90% of candidates who spend the most win House seats [6]. From 2000 through 2016, only one election cycle deviated from this trend: 2010 [6].

Regarding the 2024 election, campaign finance has and will continue to play an important role. Polls show razor-thin margins for the House, Senate, and presidency, marking it as one of the most significant elections in recent history. As of the end of February, Biden had raised $127 million, with $71 million in cash—almost twice as much as Trump [7]. However, fundraising is just the beginning of Trump’s problems, as he faces 88 criminal charges across four separate cases [8]. A recent ruling awarded author E. Jean Carroll $83.3 million in defamation charges, and in his civil fraud case, Trump has been ordered to post a $175 million bond [8].

All these cases share a common denominator: Trump’s growing money troubles. Once a famed billionaire, he has started using campaign funds to cover his legal fees, as most of his liquid assets have been depleted [8]. Given the critical role of money plays in elections, Trump’s financial situation is causing alarm for Republicans as margins close and Biden’s polls rise [7]. Despite this, Trump remains optimistic, calling on his supporters to donate for his legal fees, sending out emails and texts following indictments and court appearances. He has even begun selling merchandise featuring his own mugshot [8].

Perhaps the 2024 election cycle provides a perfect example of the looming influence of campaign finance on politics: a candidate asking donors to sponsor legal fees related to criminal charges. The lack of stringent regulations also allows Super PACs and other entities to utilize funds for purposes beyond their original intent, often without donor consent. Legislative, executive, and judicial elections are becoming increasingly muddled by outside interests through Super PACs and dark money. This current state of campaign finance regulation creates a troubling narrative for the future of American politics. Regulations must be enforced, and the FEC must be restructured to address its gridlock; otherwise, public servants may very well become champions of private interests.

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