Federal Election Commission

The Federal Election Commission (FEC), an independent agency created by Congress in 1975, administers [Page p170]and enforces the campaign finance laws affecting candidates for federal office.

The two basic laws for which the FEC is responsible are the Federal Election Campaign Act of 1971 (FECA), as amended, and the Bipartisan Campaign Reform Act (BCRA) of 2002. The FECA requires disclosure of sources and uses of funds for presidential and congressional campaigns, limits the size of contributions, and provides for partial public financing of campaigns for the presidency. The 2002 law bans the use of unregulated soft money by the national parties and federal candidates, and places restrictions on a certain kind of political advertising, known as issue advocacy. Opponents challenged both laws in the courts on the grounds they violated their First Amendment rights. The Supreme Court issued a landmark decision on the FECA and was expected to rule on the constitutionality of the BCRA in 2003. Supporters of the 2002 statute were unhappy with the FEC's regulations implementing the new law and launched a legal challenge of their own.

Candidates and their campaign committees, party committees, and political action committees (PACs) formed to support one or more candidates must register with the FEC once they cross a certain threshold of financial activity. They then must report periodically to the FEC on their campaign receipts and expenditures. Individuals or committees making independent expenditures for or against a candidate also must file reports. The FEC makes the reports available to the public.

FEC staff members review the reports for omissions. If any are found, the commission may request additional information from the candidate or committee. If the FEC finds an apparent law violation, it has the authority to seek a conciliation agreement including a civil penalty. If a conciliation agreement cannot be reached, the FEC may sue for enforcement in U.S. District Court. The commission may refer to the Justice Department any matter that involves a willful violation.

The FEC also administers the Presidential Election Campaign Fund, which makes possible the public funding of presidential primaries, national party conventions, and presidential general elections. (See President: nominating and electing.) Each year the fund receives money from the optional $3 checkoff on individual income tax returns ($6 on a joint return). In 2000, for example, about $60.7 million went into the presidential fund from the tax checkoff, and in 2001 about $57 million. According to Internal Revenue Service figures, only about 12 percent of tax filers chose to participate in the program in the late 1990s, as compared with 25 percent or better in the early years of the program in the late 1970s.

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