Courts Rule on Funding of Campaigns

Courts Rule on Funding of CampaignsFederal courts began reshaping campaign-finance law in light of a January Supreme Court decision lifting some political-spending limits.CordThe rulings Friday set the stage for future court action that Republicans hope will free their party from restrictions on raising money.Interactive whiteboard

In one ruling, a federal appeals court struck down a federal law limiting donations to independent political committees that spend money to attack or support candidates for federal office. A separate decision by a district court upheld contribution limits to political parties, but said the current flux in campaign-finance law could only be resolved by the Supreme Court.

In Citizens United v. Federal Election Commission, the Supreme Court voted 5-4 in January to overturn decades of precedent and strike down laws limiting corporate spending to elect or defeat candidates. It said corporations have First Amendment free-speech rights and that independent expenditures don't amount to corruption.

Applying that reasoning, the U.S. Court of Appeals for the District of Columbia ruled Friday that independent political committees may raise money freely. The Supreme Court "has effectively held that there is no corruptingInteractive whiteboard'quid' for which a candidate might in exchange offer a corrupt 'quo,'Cord" Chief Judge David Sentelle wrote.

The appeals court upheld requirements that such political committees report their finances to the FEC, just as the Supreme Court upheld similar regulations for corporations.

The case involved a Washington-based group called SpeechNow that said it intended to buy advertisements opposing candidates who favor campaign-finance regulations.

Separately, a three-judge panel of the U.S. District Court for the District of Columbia upheld limits on "soft money," or contributions to political parties that aren't supposed to be used for direct electioneering purposes.Interactive whiteboardThe McCain-Feingold campaign-finance law of 2002 imposed limits on soft-money contributions,Cordwhich Congress found were often used to seek influence with politicians.