The Federal Election Campaign Act of 1971 and its 1974 Amendments

While often referred to as the 1973 campaign finance law, the cornerstone of modern American campaign finance regulation is actually the Federal Election Campaign Act (FECA) of 1971. However, it was the significant amendments passed in 1974, responding to the Watergate scandal, that truly reshaped the landscape. These amendments are inextricably linked to the original act, making it more accurate to speak of FECA and its subsequent modifications as a single, evolving legislative framework.

The 1971 FECA, in its initial form, aimed primarily at disclosure. It required candidates and political committees to disclose their sources of campaign funding and expenditures. This rudimentary transparency was seen as a crucial step towards holding politicians accountable and preventing undue influence. However, the original act lacked teeth. Enforcement mechanisms were weak, and loopholes were readily exploited. The Watergate scandal, with its revelations of secret and illegal campaign contributions, exposed these inadequacies in stark detail.

The 1974 amendments, born from the public outcry following Watergate, significantly strengthened FECA. They introduced several key reforms:

• Contribution Limits: The amendments imposed limits on individual and organizational contributions to federal candidates. This aimed to reduce the influence of wealthy donors and prevent quid-pro-quo corruption. Specific limits were set for different types of contributions, such as those to individual candidates, political parties, and political action committees (PACs).
• Expenditure Limits: Initially, the amendments also imposed limits on overall campaign spending. The idea was to level the playing field and prevent candidates with access to vast resources from overpowering their opponents. However, these expenditure limits were later struck down by the Supreme Court in Buckley v. Valeo (1976) on First Amendment grounds, arguing that they restricted political speech.
• Public Financing of Presidential Elections: The amendments established a system of public financing for presidential primary and general election campaigns. Candidates who agreed to abide by spending limits could receive federal funds, reducing their reliance on private contributions.
• Federal Election Commission (FEC): Perhaps the most important innovation was the creation of the FEC, an independent agency tasked with enforcing campaign finance laws. The FEC was given the authority to investigate alleged violations, issue regulations, and impose penalties. This provided a much-needed mechanism for holding campaigns accountable.

The 1974 amendments to FECA represented a profound shift in American campaign finance. They aimed to promote transparency, limit the influence of wealthy donors, and ensure fairer elections. While the Supreme Court's decision in Buckley v. Valeo significantly weakened the expenditure limits, the core principles of disclosure, contribution limits, public financing, and independent enforcement established by the amendments have shaped the landscape of campaign finance for decades. These reforms, though imperfect and subject to ongoing debate and legal challenges, remain a crucial part of the effort to maintain the integrity of the American electoral process.