Campaign Finance: Constitutional and Legal Issues of Soft Money

Prior to enactment of the Bipartisan Campaign Reform Act of 2002 (BCRA), P.L. 107-155, the term “soft money” generally referred to unregulated funds, perceived as resulting from loopholes in the Federal Election Campaign Act (FECA), 2 U.S.C. §§ 431 et seq. Generally, the intent of BCRA, (effective Nov. 6, 2002), which amends FECA, is to restrict the raising and spending of soft money. This Issue Brief discusses constitutional and legal issues surrounding two major types of soft money that BCRA regulates: political party soft money and soft money used for issue advocacy communications. Corporate and labor union soft money, which FECA exempts from regulation and is not addressed by BCRA, is also discussed