Soft Money

Definition

Soft money refers to contributions made to political parties for purposes other than supporting a specific candidate's election campaign, often used for party-building activities and general political advertising. These funds are not subject to the same legal limits as hard money, which is directly contributed to candidates, making soft money an attractive option for parties looking to enhance their overall political presence without directly supporting individual candidates.

5 Must Know Facts For Your Next Test

1. Soft money became a significant part of campaign financing in the 1990s as political parties utilized it to circumvent contribution limits on hard money.
2. The Bipartisan Campaign Reform Act of 2002 aimed to limit the use of soft money in federal elections by banning national party committees from raising or spending soft money.
3. Despite the ban on soft money for national parties, it still can be utilized by state and local parties for activities that do not directly support candidates.
4. The Supreme Court's decision in Citizens United v. FEC (2010) further complicated soft money regulations by allowing corporations and unions to spend unlimited amounts on independent political expenditures.
5. Soft money is often used for issue advocacy ads, which can influence voter perceptions without explicitly advocating for a particular candidate.

Review Questions

• How did soft money evolve as a strategy within political campaign financing, particularly in relation to hard money?
  • Soft money emerged as a way for political parties to raise funds without facing the strict limitations that apply to hard money contributions. In the 1990s, parties began using soft money for party-building activities and advertisements, allowing them to support broader political goals while avoiding direct contributions to candidates. This created a loophole in campaign finance laws until reforms like the Bipartisan Campaign Reform Act sought to address these practices.
• Evaluate the impact of the Bipartisan Campaign Reform Act of 2002 on the use of soft money in political campaigns.
  • The Bipartisan Campaign Reform Act of 2002 significantly restricted the use of soft money by banning national party committees from raising or spending these funds in federal elections. This legislation aimed to reduce the influence of unregulated contributions on the electoral process. However, while it curtailed soft money at the national level, it allowed state and local parties to continue using these funds, leading to ongoing debates about the effectiveness of campaign finance reforms.
• Synthesize the implications of the Citizens United v. FEC decision on soft money and its role in contemporary election cycles.
  • The Citizens United v. FEC ruling had far-reaching implications for soft money in contemporary elections by allowing corporations and unions to make unlimited independent expenditures. This decision essentially redefined the landscape of campaign financing, enabling groups to use soft money for advocacy without direct coordination with candidates. As a result, super PACs emerged as powerful players in elections, leveraging soft money donations to influence voter behavior and challenge traditional funding structures, thus raising new questions about transparency and accountability in political financing.

Related terms

Hard Money: Regulated contributions made directly to a candidate's campaign, subject to strict limits set by federal and state laws.

Federal Election Commission (FEC):

An independent regulatory agency that oversees and enforces federal campaign finance laws, including the regulation of both hard and soft money.

Political Action Committee (PAC): An organization that raises and spends money to elect or defeat political candidates, often using hard money contributions while navigating the regulations surrounding campaign finance.