Political Action Committees

Activities and Financing

While they are often required to register with regulators, PACs are normally conceived as a way of supporting candidates or issues outside of or parallel with the formal political process. PACs can advocate election of a candidate or subject opposition candidates to attack. The sets of alliances and monetary arrangements that develop between PACs and the political establishment are important factors to report on and critically assess. An informed understanding of the role of PACs and the restrictions they face provides journalists with insight into the links between finance and political power.

PACs are defined in U.S. federal and state law. Their roots lie in the 1971 Federal Election Campaign Act, which was designed to regulate political campaign spending and promote greater political and financial transparency in campaign funding. This act was designed to police campaign funding both inside and outside of the formal political process. Within the institutions of party politics, the act placed limits on the amounts those seeking political office could contribute to their own campaigns, as well as requiring that party election committees offer full quarterly accounts of their fundraising activities. Crucially, however, the remit of the Act extended beyond the conventional political parties, and the PAC was established as a means of broadening the requirement for openness and accountability to include more of those who seek to intervene in the campaigning process.

PACs are obliged to register with the Federal Election Commission (FEC). In enforcing regulations, the FEC recognizes a number of types of PACs that are made subject to slightly different rules. One category is referred to by the FEC as a “separate segregated funds” committee, which is a form of PAC affiliated with a union or corporation. The most important restriction on these PACs is that they are confined to raising money only from within their host organizations. The [Page 1082]host organizations are also allowed to pay for the PAC's administrative and running costs.

The “leadership PAC” is formed at the time of biennial federal elections to provide a mechanism for members of Congress to raise campaign money for a candidate other than themselves. While these are clearly allied to the party system, such a PAC cannot be established for a Representative's own political or material benefit. So while the Representative forming the PAC is entitled to draw reasonable travel expenses, he or she has to show the FEC that they do not spend any of the PAC's funds on their own campaigning.

Another category is what the FEC calls the “non-connected committee.” This type of PAC is allowed to raise funds from the general public, but on the strict condition that the PAC remains free from affiliation with corporations or unions. Such “independent” PACs are more often driven by issues rather than political allegiance, although recommendations on how to vote are routinely issued. While they are entitled to solicit public contributions, independent PACs have to make certain that no individual contribution exceeds a set legal limit. Additionally, all of the operational costs of the independent PAC need to be met through money given by the public. This is an attempt to ensure that such PACs don't become mechanisms for organizations or individuals to bankroll favored causes.

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