One of the key aspects of the McCain-Feingold law was the elimination of soft money to the national party committees (that is, the DNC, RNC, and each party’s congressional and senatorial committees). Reformers (and some corporations that resented being hit up by the parties for donations) praised this aspect of the law and others bemoaned
Citizens United
Still No Super PACs to the Rescue in New York City
In March 2010, following the Supreme Court ruling in Citizens United, a federal appeals court ruled that that a political committee making independent expenditures (i.e., not direct contributions or coordinated expenditures) has a constitutional right to receive unlimited contributions. The ruling triggered a proliferation of so-called Super PACs that have been active in federal and …
501(c)(4)s: Why all the fuss?
Obviously the IRS has spent a great deal of time trying to determine whether certain groups qualify for exemption under Section 501(c)(4) of the tax code. Why 501(c)(4) status matters so much is really about disclosure and not about tax revenue at all.
Unlike contributions to Section 501(c)(3) organizations, contributions to 501(c)(4)s are not deductible …
The Ban on Corporate Contributions Survives for Now
The Supreme Court announced today that it will not hear a case challenging the longstanding federal ban on corporate contributions. The case involved promises by a CEO that his corporation would reimburse employees for contributing to Hillary Clinton’s 2008 Presidential campaign. The trial court held that the ban on corporate contributions was unconstitutional in the…
Contribution Limits in Limbo?
The Federal Election Commission not only limits how much an individual can give to a particular candidate, PAC, or party committee, it also limits the aggregate amount an individual can give to all federal political committees during a two-year period (the aggregate biennial limit).
Earlier this week, the Supreme Court accepted a case challenging…
Government Contractors Face Growing Risks from Laws Regulating Political Contributions
The landmark Supreme Court ruling in the Citizens United case paved the way for explosive growth in political spending during the 2012 election cycle. However, for government contractors and their principals, a growing number of “pay-to-play” laws restrict political contributions and fundraising, and can result in severe penalties, including the loss of contracts. Venable has…
Federal Ban on Government Contractor Political Contributions Upheld
On November 2, 2012, the District Court for the District of Columbia, two days after oral argument, upheld the long-standing ban on political contributions from federal government contractors. In Wagner v. Federal Election Commission, three independent contractors with various federal agencies argued that the ban on federal contractor contributions in section 441c of the…
Election-Cycle Limits In Doubt As Case Heads For Supreme Court
A case headed to the Supreme Court could upend longstanding rules limiting federal political contributions. The Republican National Committee and an individual plaintiff filed an appeal yesterday after a three-judge panel of the U.S. District Court for the District of Columbia rejected their challenge to limits on the total amount an individual may contribute over…
States Ramp Up Disclosure Rules for Political Spending; Federal Efforts Stall
Outside groups have become a potent political force in the 2012 election campaign. Unleashed by the Supreme Court ruling in the Citizens United case and subsequent lower court rulings, such groups can raise unlimited sums from individuals and corporations for ads and other spending that is not “coordinated” with a candidate. The most dramatic example:…
Politics in the Workplace: As Election Season Heats Up, Do Not Overlook State Employment Laws
Ever wonder what “rights” employees have to express political views in a private workplace? Or whether any limits apply to an employer seeking to encourage political participation by its employees?
As companies consider rallying employees to support grassroots lobbying campaigns and employees engage with one another about the upcoming election (or perhaps seek to take…