20 Facts About Campaign Finance And Election Spending In The US

Public Funding of Presidential Elections

Public funding helps level the playing field for presidential candidates. It ensures that those without deep pockets can still compete.

1. The US presidential public funding program provides federal funds to eligible candidates to cover qualified campaign expenses during both primary and general elections.
2. This program uses tax dollars, primarily from the $3 tax checkoff on the 1040 federal income tax form, which allows taxpayers to designate $3 of their taxes for the Presidential Election Campaign Fund.

Eligibility for Public Funding

Not every candidate can access public funds. There are specific criteria and limits they must adhere to.

3. To qualify for public funding, candidates must agree to certain spending limits and restrictions, such as matching contributions up to $250 per individual and limiting overall primary campaign spending to $10 million plus the difference in the price index.
4. Major party nominees receive a grant of $20 million plus the difference in the price index for the general election, while minor party candidates receive partial funding based on their popular vote ratio.

Campaign Spending Limits

Spending limits are in place to prevent excessive and unfair financial advantages in campaigns.

5. The national spending limit for primary elections in 2024 is $61.79 million, while state limits range from $1,236,000 in Wyoming to $30,176,500 in California.
6. Candidates are allowed to spend an additional $50,000 from their personal funds without it counting against the expenditure limit.

Exemptions from Spending Limits

Certain expenses are exempt from spending limits, allowing candidates some financial flexibility.

7. Certain fundraising expenses (up to 20% of the expenditure limit) and legal and accounting expenses incurred solely to ensure compliance with the law do not count against the expenditure limits.

Debt Repayment

Even after active campaigning ends, candidates can still manage their campaign debts.

8. Even if candidates no longer campaign actively in primary elections, they can continue to request public funds to pay off campaign debts until the first Monday of March of the year following an election.

General Election Funding

General election funding differs from primary funding, with stricter rules on private contributions.

9. Major party nominees in the general election receive a grant of $20 million plus the difference in the price index. They are not allowed to accept private contributions during this period.
10. Minor party candidates and new party candidates may receive partial public funding for their general election campaigns based on their popular vote ratio.

Total Campaign Spending

Campaign spending has skyrocketed in recent years, reflecting the increasing costs of running for office.

11. In the 2020 presidential cycle, all candidates raised a combined $4.1 billion, while outside groups raised $13.2 billion.
12. As of July 1, 2024, candidates for the 2024 presidential race have raised $553 million through campaigns, and PACs have raised a total of $989.5 million.

Contribution Limits

Contribution limits aim to prevent undue influence from wealthy donors.

13. In federal general elections, an individual can donate a maximum of $3,300 to a candidate or candidate committee.
14. There are no limits on independent expenditures or contributions to organizations that pay them.

Role of PACs and Super PACs

PACs and Super PACs play a significant role in modern campaign finance, often sparking controversy.

15. Political Action Committees (PACs) and Super PACs play significant roles in campaign finance, allowing individuals and organizations to contribute unlimited amounts to influence elections.
16. Critics argue that these entities contribute to the dominance of big money in U.S. politics, drowning out the voices of ordinary Americans.

Federal Election Commission (FEC)

The FEC oversees and enforces campaign finance laws to ensure fair elections.

17. The FEC oversees federal elections and enforces federal campaign finance law, ensuring compliance with public disclosure of funds and contribution/expenditure limits.
18. The FEC is composed of six commissioners, with no more than three from the same political party, ensuring a balanced approach to regulation.

State Campaign Finance Laws

States have their own rules, adding another layer of complexity to campaign finance.

19. States have their own campaign finance laws, which must comply with federal regulations. These laws are set in state constitutions, legislatures, or ballot measures.
20. States can create laws outside federal guidelines but must adhere to federal and appeals court precedents.

The Bottom Line on Campaign Finance

Campaign finance and election spending in the US are intricate and ever-changing. Public funding programs, contribution limits, and the influence of PACs and Super PACs shape the political landscape. Supreme Court decisions like Citizens United v. FEC have dramatically altered how money flows in politics, leading to increased dark money and big donor influence. The Federal Election Commission (FEC) oversees these activities, ensuring compliance with laws. Despite efforts to regulate, the total cost of federal elections has skyrocketed, with billions spent each cycle. Public perception often highlights concerns about the undue influence of wealthy donors. Understanding these dynamics is crucial for grasping the complexities of American politics. As campaigns continue to evolve, staying informed about these financial aspects remains essential for voters and policymakers alike.