Political action committee explained

In the United States, a political action committee (PAC) is a tax-exempt 527 organization that pools campaign contributions from members and donates those funds to campaigns for or against candidates, ballot initiatives, or legislation.[1] [2] The legal term PAC was created in pursuit of campaign finance reform in the United States. Democracies of other countries use different terms for the units of campaign spending or spending on political competition (see political finance). At the U.S. federal level, an organization becomes a PAC when it receives or spends more than $1,000 for the purpose of influencing a federal election, and registers with the Federal Election Commission (FEC), according to the Federal Election Campaign Act as amended by the Bipartisan Campaign Reform Act of 2002 (also known as the McCain–Feingold Act).[3] At the state level, an organization becomes a PAC according to the state's election laws.

Contributions to PACs from corporate or labor union treasuries are illegal, though these entities may sponsor a PAC and provide financial support for its administration and fundraising. Union-affiliated PACs may solicit contributions only from union members. Independent PACs may solicit contributions from the general public and must pay their own costs from those funds.[4]

Overview

Federal multi-candidate PACs may contribute to candidates as follows:

In its 2010 case Citizens United v. FEC, the Supreme Court of the United States overturned sections of the Campaign Reform Act of 2002 (also known as the McCain–Feingold Act) that had prohibited corporate and union political independent expenditures in political campaigns.[5] Citizens United declared it was unconstitutional to prohibit corporations and unions from spending from their general treasuries to promote candidates or from contributing to PACs. It left intact these laws' prohibitions on corporations or unions contributing directly to a candidate or candidate committee.[6] [7] [8]

History

The political action committee emerged from the labor movement of 1943.[9] The first PAC was the CIO-PAC, formed in July 1943 under CIO president Philip Murray and headed by Sidney Hillman. It was established after the U.S. Congress prohibited unions from giving direct contributions to political candidates. This restriction was initially imposed in 1907 on corporations through the Tillman Act.[10] The Smith–Connally Act extended its coverage to labor unions in 1943. A series of campaign reform laws enacted during the 1970s facilitated the growth of PACs after these laws allowed corporations, trade associations, and labor unions to form PACs.[11] In 1971 the Federal Election Campaign Act (FECA) created rules for disclosure, which made it so all donations received by PACs must go through a central committee maintained by said PAC. Furthermore, it required PACs to file regular reports with the Federal Election Commission(FEC) disclosing anyone who has donated at least $200.[12] The Supreme Court has declared unconstitutional limits imposed on PACs by the legislature under First Amendment grounds in many cases, starting with Buckley v. Valeo.

Throughout the past 30 years, campaign donations from PACs have been increasingly growing, with $333 million being raised in 1990 to $482 million in 2022.[13] Even with the major growth, PAC contributions only made up 23% of the money raised by House candidates and only 10% for senate candidates, despite media coverage which tends to exaggerate contributions.[14]

Categorization

Federal law formally allows for two types of PACs: connected and non-connected. Judicial decisions added a third classification, independent expenditure-only committees, which are colloquially known as "super PACs".

Connected PACs

Most of the 4,600 active, registered PACs, named "connected PACs", sometimes also called "corporate PACs", are established by businesses, non-profits, labor unions, trade groups, or health organizations. These PACs receive and raise money from a "restricted class", generally consisting of managers and shareholders in the case of a corporation or members in the case of a non-profit organization, labor union or other interest group. As of January 2009, there were 1,598 registered corporate PACs, 272 related to labor unions and 995 to trade organizations.[15]

Non-connected PACs

Groups with an ideological mission, single-issue groups, and members of Congress and other political leaders may form "non-connected PACs". These organizations may accept funds from any individual, connected PAC, or organization. As of January 2009, there were 1,594 non-connected PACs, the fastest-growing category.[15]

Leadership PACs

Elected officials and political parties cannot give more than the federal limit directly to candidates. However, they can set up a leadership PAC that makes independent expenditures. Provided the expenditure is not coordinated with the other candidate, this type of spending is not limited.[16]

Under the FEC (Federal Election Commission) rules, leadership PACs are non-connected PACs, and can accept donations from individuals and other PACs. Since current officeholders have an easier time attracting contributions, Leadership PACs are a way dominant parties can capture seats from other parties. A leadership PAC sponsored by an elected official cannot use funds to support that official's own campaign. However, it may fund travel, administrative expenses, consultants, polling, and other non-campaign expenses.[17] [18] [19]

In the 2018 election cycle, leadership PACs donated more than $67 million to federal candidates.[20]

Controversial use of leadership PACs

Super PACs

See main article: Super PAC. Super PACs, officially known as "independent expenditure-only political action committees," are unlike traditional PACs in that they may raise unlimited amounts from individuals, corporations, unions, and other groups to spend on, for example, ads overtly advocating for or against political candidates. However, they are not allowed to either coordinate with or contribute directly to candidate campaigns or political parties.[30] Super PACs are subject to the same organizational, reporting, and public disclosure requirements of traditional PACs.[31]

Hybrid PAC

See main article: Hybrid PAC. A hybrid PAC (sometimes called a Carey Committee) is similar to a super PAC, but can give limited amounts of money directly to campaigns and committees, while still making independent expenditures in unlimited amounts.[32] [33]

Top PACs by election cycle

OpenSecrets maintains a list of the largest PACs by election cycle on its website OpenSecrets.org.[34] Their list can be filtered by receipts or different types of expenses, political party, and type of PAC.

2018 election

In the 2018 election, the top ten PACs donated a total of $29,349,895 (directly, and via their affiliates and subsidiaries) to federal candidates:[35]

  1. National Association of Realtors – $3,444,276
  2. National Beer Wholesalers Association – $3,433,500
  3. AT&T – $3,433,500
  4. Northrop Grumman PAC – $2,849,740
  5. National Air Traffic Controllers Association – $2,813,250
  6. International Association of Sheet Metal, Air, Rail and Transportation Workers – $2,797,450
  7. American Bankers Association – $2,768,330
  8. House Freedom Fund, a leadership PAC associated with Mark Meadows – $2,733,340
  9. International Union of Operating Engineers – $2,726,909
  10. National Auto Dealers Association – $2,666,400

2020 election

In the 2020 election, the top ten PACs donated a total of $28,276,448 (directly, and via their affiliates and subsidiaries) to federal candidates:[36]

  1. National Association of Realtors – $3,960,998
  2. National Beer Wholesalers Association – $3,147,500
  3. Credit Union National Association – $2,849,800
  4. AT&T Inc. – $2,742,000
  5. American Crystal Sugar – $2,702,500
  6. Comcast – $2,664,500
  7. American Bankers Association – $2,661,200
  8. International Union of Operating Engineers – $2,599,700
  9. Sheet Metal, Air, Rail, & Transportation Union – $2,488,150
  10. Majority Committee PAC, a leadership PAC associated with Kevin McCarthy – $2,460,100

2022 election

In the 2022 election, the top ten PACs donated a total of $28,051,395 (directly, and via their affiliates and subsidiaries) to federal candidates:[37]

  1. National Association of Realtors – $4,001,500
  2. National Beer Wholesalers Association – $3,258,000
  3. Credit Union National Association – $2,888,500
  4. American Israel Public Affairs Committee – $2,664,900
  5. American Crystal Sugar – $2,624,000
  6. AT&T Inc. – $2,609,400
  7. Blue Cross/Blue Shield – $2,561,225
  8. International Union of Operating Engineers – $2,533,920
  9. National Auto Dealers Association – $2,514,000
  10. American Bankers Association – $2,395,950

2024 election

In the 2024 election, the top ten PACs donated a total of $25,995,526 (directly, and via their affiliates and subsidiaries) to federal candidates:[38]

  1. National Assn of Realtors – $3,751,000
  2. Blue Cross/Blue Shield – $2,705,050
  3. American Crystal Sugar – $2,667,500
  4. National Beer Wholesalers Assn – $2,585,000
  5. American Israel Public Affairs Committee – $2,572,500
  6. Operating Engineers Union – $2,528,306
  7. America's Credit Unions – $2,489,160
  8. American Bankers Assn – $2,249,580
  9. Sheet Metal, Air, Rail & Transportation Union – $2,226,900
  10. Trump 47 Cmte – $2,220,530

See also

External links

Notes and References

  1. Book: Janda . Kenneth . The Challenge of Democracy: American Government in a Global World . Berry . Jeffrey M. . Goldman . Jerry . 2008-12-19 . Cengage Learning . 978-0547204543 . 10th . . 309 . 2013-05-13.
  2. Web site: 2010-12-20 . Civics Glossary . dead . https://web.archive.org/web/20130607160220/http://www.sos.ky.gov/kids/civics/glossary.htm . 2013-06-07 . 2012-01-04 . Kentucky Secretary of State.
  3. Web site: [USC02] 52 USC 30101: Definitions . 2017-06-03.
  4. Web site: May 2008 . FEC Campaign Guide for Nonconnected Committees . Federal Election Committee.
  5. Book: Ely, James W. Jr. . The Oxford Companion to the Supreme Court of the United States . . 2012 . 9780199916467 . Hall . Kermit L. . Kermit L. Hall . 2nd . Oxford . encyclopedia . 2005.
  6. Web site: January 6, 2012 . Comments on Petition for Rulemaking on Corporate Political Spending, Submitted by 21 Civic Organizations and Individuals . 10 May 2020 . Securities and Exchange Commission.
  7. Web site: Murse . Tom . What is a Super PAC? . December 9, 2012 . About.com U.S. Politics . November 12, 2012 . https://web.archive.org/web/20121112201956/http://uspolitics.about.com/od/firstamendment/a/What-Is-A-Super-Pac.htm . dead .
  8. News: End Citizens United raises $4 million, projects $35 million haul for midterms . en . USA Today . 2017-08-03.
  9. Book: Lehne, Richard . Government and Business: American Political Economy in Comparative Perspective . 2012 . SAGE . 9781608710171 . 3rd . Los Angeles, CA . 169.
  10. Book: Haider-Markel . Donald P. . Political Encyclopedia of U.S. States and Regions . Card . Michael A. . 2009 . CQ Press . 9780872893771 . Washington, D.C. . 896.
  11. Book: Devlin, Lawrence Patrick . Political Persuasion in Presidential Campaigns . 1987 . Transaction Publishers . 0887380786 . New Brunswick, NJ . 197 . registration.
  12. Book: Sides 1, Shaw 2, Grossmann 3, Lipsitz 4, John 1, Daron 2, Matt 3, Kenna 4 . Campaigns and Elections: Rules, Reality, Strategy, Choice . 2024 . W. W. Norton & Company . 978-1-324-04692-9 . 4th . New York, NY . 2024 . 98.
  13. Web site: September 22, 2024 . Where the Money Came From .
  14. Ansolabehere . Stephen . Snowberg . Erik C. . Snyder . James M. . 2005 . Unrepresentative Information: The Case of Newspaper Reporting on Campaign Finance . The Public Opinion Quarterly . 69 . 2 . 213–231 . 10.1093/poq/nfi022 . 3521578 . 0033-362X. 10.1.1.180.2567 .
  15. Web site: March 9, 2009 . Number of Federal PACs Increases . dead . https://web.archive.org/web/20160303221753/http://www.fec.gov/press/press2009/20090309PACcount.shtml . 3 March 2016 . 13 January 2016 . Federal Election Commission.
  16. Web site: Kurtzleben . Danielle . September 27, 2010 . DeMint's PAC Spends $1.5 Million in Independent Expenditures . U.S. News & World Report.
  17. Web site: Stern . Marcus . LaFleur . Jennifer . September 26, 2009 . Leadership PACs: Let the Good Times Roll . dead . https://web.archive.org/web/20091220011916/http://www.propublica.org/feature/leadership-pacs-let-the-good-times-roll-925 . December 20, 2009 . December 10, 2009 . ProPublica.
  18. Web site: Leadership PACs and Sponsors . dead . https://web.archive.org/web/20120310000223/http://www.fec.gov/data/Leadership.do?format=html . 2012-03-10 . Federal Election Commission.
  19. Web site: Congress 101: Political Action Committees (PAC) . dead . https://web.archive.org/web/20110708200810/http://corporate.cqrollcall.com/wmspage.cfm?parm1=233 . 2011-07-08 . CQ's Congress A to Z Online Edition.
  20. Web site: 2018 . Leadership PACs . 2019-12-27 . OpenSecrets.
  21. Web site: Seidman . Joel . April 19, 2007 . FBI raids U.S. Rep. Doolittle's home . https://web.archive.org/web/20160408233630/http://www.nbcnews.com/id/18183698/ . dead . April 8, 2016 . 13 January 2016 . NBC News.
  22. Web site: Political Action Committees . dead . https://web.archive.org/web/20080318122110/http://www.opensecrets.org/pacs/expend.asp?strID=C00317511&Cycle=2006 . 2008-03-18 . 2012-01-04 . OpenSecrets.org . OpenSecrets.
  23. News: Weisman . Jonathan . Birnbaum . Jeffrey H. . Jeffrey Birnbaum . July 11, 2006 . Lawmaker Criticized for PAC Fees Paid to Wife . The Washington Post . 2010-05-22.
  24. News: February 11, 2004 . Pelosi PAC fined $21,000 by federal elections officials . USA Today . May 22, 2010.
  25. Web site: Trump political PAC paid Melania's hair stylist at least $132K for 'strategy consulting': report'; Herve Pierre Braillard has also made dresses and hats for Melania in the past. Anders. Hagstrom. February 1, 2023. Fox News.
  26. Web site: Trump's Save America PAC Under Investigation In January 6 Probe. Alison. Durkee. Forbes. September 8, 2022.
  27. Web site: Donald Trump's Save America PAC was formed to fight debunked election fraud claims after he lost the 2020 election. Here's what you need to know about what the fund does and how it spends.. Rachel Looker. USA TODAY. August 11, 2022.
  28. Web site: As Legal Fees Mount, Trump Steers Donations Into PAC That Has Covered Them. Shane. Goldmacher. Maggie. Haberman. June 25, 2023. The New York Times.
  29. Web site: Federal grand jury probing Trump's Save America leadership PAC, reports say . September 9, 2022. CBS News.
  30. Web site: Super PACs . OpenSecrets. 1 August 2023.
  31. Briffault . Richard . 2012-01-01 . Super PACs . Minn. L. Rev. . 96 . 1644.
  32. Web site: 2013 . FEC Terminology for Candidate Committees . 2018-12-10 . Federal Election Commission.
  33. Web site: Levinthal . Dave . 2012-01-21 . Meet the super super PAC . 2018-12-10 . Politico.
  34. Web site: Top PACs . 27 December 2019 . OpenSecrets.
  35. Web site: June 10, 2019 . Top PACs 2018 . 7 Nov 2024 . Open Secrets.
  36. Web site: March 22, 2021 . Top PACs 2020 . 7 Nov 2024 . Open Secrets.
  37. Web site: March 20, 2023 . Top PACs 2022 . 7 Nov 2024 . Open Secrets.
  38. Web site: October 26, 2024 . Top PACs 2024 . 7 Nov 2024 . Open Secrets.

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