The Money Trail

"The Money Trail"

Without money most of the candidates running for the 2000 presidential election would have by now disappeared from the race. So where does the money come from? By the end of this paper this question will be answered, along with many others that many Americans think about. The focus will basically be on the Federal Campaign Finance Law, soft money and how it effects the presidential race, and lastly Governor Bush and Vice-President Gore's views on campaign finance reform.

The only way to survive a presidential or congressional election race is with money. All of the 2000 presidential candidates got as far as they did with lots and lots of money. But, since most funds are donated, each candidate has to follow certain guidelines provided by the Federal Election Commission. This commission created the Federal Election Campaign Act, which has many different restrictions on contributing money. FECA requires candidate committees, party committees, and PACs to file periodic reports disclosing the money they raise and spend (FEC 1). Also candidate committees and party committees must identify individuals who give more than two hundred dollars a year (FEC 1). This committee also restricts who can give money, such as corporations, labor organizations, federal government contractors, and foreign nationals. One other limitation is that no one may make a contribution in another person's name and no one may make a contribution in cash of more than one hundred dollars (FEC 1). The Federal Election Campaign Act also states contribution limits. The chart below shows the limits and which participants they affect (FEC 1).

Mills 2 The chart below shows the limits and which participants they affect (FEC 1).

Not only does the Federal Election Campaign Act limit parties; it also gives guidelines to the candidates. Eligible candidates in the presidential primaries may receive public funds to match the private contributions they raise (FEC 4). Now that is a great plus for a candidate but here comes the rub. An individual may give up to one thousand dollars to a primary candidate, but only the first two hundred and fifty of that contribution will be federally matched (FEC 4). So even though candidates can receive public funding, it is only for a small amount of money. Also even before they can receive public funding,

Mills 3

each candidate must demonstrate broad-based support by raising more than five thousand dollars in matchable contributions in each of twenty different states (FEC 4). These rules

are only a small part of the guidelines that candidates and political parties have to follow in order to