Electoral Systems in the USA: Campaign Finance (Edexcel A Level Politics): Revision Note

The role of campaign finance

• Campaign finance plays a major role in US elections, but its importance is contested

Reasons campaign finance is important

• Campaign advertising is expensive but central to voter outreach, particularly in swing states

  • Access to significant funds is crucial

    • In the 2024 presidential election, Joe Biden and Donald Trump spent hundreds of millions of dollars on TV, digital, and social media advertising

    • In states such as Pennsylvania, Arizona, and Georgia both candidates aimed to mobilise undecided voters and increase turnout

• Fundraising acts as a signal of candidate viability and momentum

  • This influences media coverage and elite support

    • Donald Trump raised over $7 million in the days following his August 2023 indictment

    • This was reported as evidence of continued support among Republican voters, reinforcing his dominance in the 2024 Republican primary

• Money enables organisational capacity

  • Well-funded campaigns can employ staff, maintain voter databases and run effective ground campaign operations

    • The Biden campaign in 2020 invested heavily in data analytics and mail-in voter mobilisation, contributing to high turnout in key states

• Wealthy donors and Super PACs amplify campaign messaging beyond what candidates can legally spend

  • In 2024, the Super PAC MAGA Inc. spent tens of millions of dollars supporting Trump

  • It funded attack ads against opponents and reinforcing his policy platform independently of the official campaign

Reasons campaign finance is not important

• High levels of spending do not guarantee electoral success

  • In Michael Bloomberg’s 2020 Democratic primary campaign, he spent over $1 billion yet failed to win significant delegate support

• Media exposure can substitute for campaign spending, particularly for high-profile candidates

  • Trump generated extensive free media coverage through rallies, controversies and social media, reducing reliance on paid advertising

    • Trump’s controversial rhetoric also resulted in extensive free media

• Partisan alignment limits the persuasive impact of spending

  • Many voters are loyal to one party regardless of campaign messaging

• Grassroots mobilisation can offset financial disadvantages

  • Bernie Sanders’ 2016 and 2020 campaigns relied on millions of small-donor contributions to remain competitive without corporate backing

Legislation on campaign finance

• US campaign finance is regulated by legislation and court rulings that shape how money can be raised and spent

• There are three main types of organisations that can be used for funding of political campaigns

Legislation and Supreme Court rulings about campaign finance

1. McCain–Feingold Act (Bipartisan Campaign Reform Act) (2002)

• The McCain–Feingold Act (2002) was introduced to reduce the influence of wealthy donors and increase transparency in federal elections

  • It banned soft money donations to national political parties

    • Soft money referred to unlimited contributions given to parties for party-building activities which, in practice, were often used to influence federal elections

• The Act also restricted issue ads to prevent indirect campaign influence

  • It prohibited corporations and unions from funding broadcast advertisements that mentioned a federal candidate within 60 days of a general election or 30 days of a primary

• McCain-Feingold’s effectiveness was limited over time

  • In FEC v Wisconsin Right to Life (2007), the Supreme Court weakened restrictions on issue advertising, allowing advertising to resume under the guise of issue advocacy

2. Citizens United v Federal Election Commission (2010)

• In Citizens United v FEC (2010), the Supreme Court ruled 5-4 that limits on independent political spending by corporations and trade unions violated the First Amendment

  • It argued that political spending is a form of protected expression

    • Independent expenditure does not create corruption, as it is not directly coordinated with candidate expenditure

• This ruling led directly to the rise of Super PACs

  • These can raise and spend unlimited funds from individuals, corporations, and unions, provided they do not coordinate with campaigns

    • During the 2020 and 2024 election cycles, Super PACs such as MAGA Inc. and Priorities USA spent hundreds of millions of dollars supporting Republican and Democratic candidates

• Critics argue Citizens United has undermined electoral equality

• Supporters claim it protects free speech, making it a central debate in US democracy