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In politics, particularly the politics of the United States, dark money refers to spending to influence elections, public policy, and political discourse, where the source of the money is not disclosed to the public.
In the United States, some types of nonprofit organizations may spend money on campaigns without disclosing who their donors are. The most common type of dark money group is the 501(c)(4) (often called social welfare organizations). [3] [4] Such organizations can receive unlimited donations from corporations, individuals and unions. Proponents of dark money maintain it is protected under the First Amendment, while critics complain recipients of dark money (as with any contribution) are beholden to their funders, while voters are kept in the dark about connections between donor and politician when favors are paid back. [5]
Dark money entered the politics of the United States with Buckley v. Valeo (1976), when the United States Supreme Court laid out "Eight Magic Words" that define the difference between electioneering and issue advocacy – exempting the latter from election finance laws. Dark campaign spending increased from less than $5.2 million in 2006 to well over $300 million in the 2012 presidential cycle, more than $174 million in the 2014 midterms, [3] $216 million in the 2014 midterm elections, [5] and more than $1 billion in all 2020 federal elections. [6] The 2010 landmark case, Citizens United v. FEC , marked the turning point when dark money contributions surged, and some political groups began contending that they were not required to register with the FEC as any sort of PAC because their primary purpose was something other than electoral politics. [7] As of 2022, the non-profit OpenSecrets states that Dark money is "pouring" into U.S. elections, but not only are its donors not being disclosed, the total quantity of the dark money isn't either. "The vast majority" of what is spent "is not being disclosed to the Federal Election Commission". [8]
In the 2020 election cycle, there were more than $1 billion in undisclosed spending; of that money, $514 million was spent to help Democrats and $200 million was spent to help Republicans. [9] A New York Times analysis found that after a decade spent attacking undisclosed political spending on the right, the Democratic Party "embraced dark money with fresh zeal," spending over $1.5 billion in undisclosed cash in the 2020 election cycle and outspending the Republican Party. [10]
The term was first used by the Sunlight Foundation to describe undisclosed funds that were used during the United States 2010 mid-term election. [11] [12] An example of the usage of the term "dark money" can be seen in a letter of resignation to President Donald Trump by former Federal Election Commissioner (FEC), Ann Ravel: "Since 2010, well over $800 million in dark money has been spent in competitive races. At the same time, elections have become more and more expensive. Most of the funding comes from a tiny, highly unrepresentative part of the population." [13]
The rise of dark money groups was aided by the U.S. Supreme Court decisions in FEC v. Wisconsin Right to Life, Inc. (2008) and Citizens United v. FEC (2010). [4] In Citizens United, the Court ruled (by a 5–4 vote) that corporations and unions could spend unlimited amounts of money to advocate for or against political candidates. [14]
In some elections, dark money groups have surpassed traditional political action committees (PAC) and "super PACs" (independent-expenditure-only committees) in the volume of spending. [4] In 2012, Freedom Partners had the ninth-highest revenues among all U.S. trade associations that filed tax returns that year, more than "established heavyweights" such as the American Petroleum Institute, PhRMA, and the U.S. Chamber of Commerce. [4] Freedom Partners largely acted as a conduit for campaign spending; of the $238 million it spent in 2012, 99 percent went to other groups, and Freedom Partners itself did not have any employees. [4] This was a major distinction between other high-revenue trade associations, which typically have many employees and devote only about 6 percent of spending to grants to outside groups. [4] In 2014, Freedom Partners was identified as the "poster child" for the rise of dark money. [4] The largest and most complex network of dark money groups are funded by billionaire business magnates Charles and David Koch; [15] the Koch brothers' network accounted for about a quarter of dark money spending in 2012. [4]
Approaching the 2018 midterm elections, in mid-September, just 15 groups accounted for three-quarters of the anonymous cash. [16]
According to OpenSecrets, dark money (which it defined as funds from outside groups that did not publicly disclose donors or those they substantially funded) accounted for nearly 44% of outside spending in the 2010 election cycle. [17] It was estimated that dark money accounted for around $127 million for this cycle. [18]
In the 2012 election cycle, more than $308 million in dark money was spent, according to OpenSecrets. [19] An estimated 86 percent was spent by conservative groups, 11 percent by liberal groups and 3 percent by other groups. [19]
The three dark money groups which spent the largest sums were Karl Rove's American Crossroads/Crossroads GPS ($71 million), the Koch brothers' Americans for Prosperity ($36 million) and the U.S. Chamber of Commerce ($35 million), all conservative groups. [19] [20] The three liberal groups with the largest dark-money expenditures were the League of Conservation Voters ($11 million), Patriot Majority USA, a group focusing on public schools and infrastructure ($7 million), and Planned Parenthood (almost $7 million). [19]
The 2014 election cycle saw the largest amount of dark money ever spent in a congressional election; The New York Times editorial board described 2014 "the greatest wave of secret, special-interest money ever." [5] On the eve of the election, Republican-leaning dark money groups dominated, with $94.6 million in expenditures, exceeding dark money expenditures by Democratic-leaning dark money groups ($28.4 million), and by expenditures that could not be classified ($1.9 million). [21] Karl Rove's dark money group Crossroads GPS alone spent over $47 million in the 2014 election cycle. [22]
In the Senate elections, dark money spending was highly concentrated in a handful of targeted competitive states, and especially in Alaska, Arkansas, Colorado, Kentucky, and North Carolina. [23] In the eleven most competitive Senate races, $342 million was spent by non-party outside groups, significantly more than the $89 million spent by the political parties.
In the 2014 Kentucky election, a key player was the "Kentucky Opportunity Coalition", a group supporting Mitch McConnell, Republican of Kentucky, [24] whom The New York Times editorial board has described as "the most prominent advocate for unlimited secret campaign spending in Washington." [5] The Kentucky Opportunity Coalition, a 501(c)(4) "social welfare" group, [25] raised more than $21 million, while McConnell raised about $32 million and McConnell's opponent, Democratic candidate Alison Lundergan Grimes, raised about $19 million. [25] According to a Center for Public Integrity analysis of data provided by advertising tracking firm Kantar Media/CMAG, the group ran more than 12,400 television advertisements. [25] Every Kentucky Opportunity Coalition's television advertisements mentioned either McConnell or Grimes; overall, about 53 percent of the group's ads praised McConnell while the rest were attack ads against Grimes. [26] The Kentucky Opportunity Coalition relied heavily on political consultants in Washington, D.C., and Virginia linked to Karl Rove's Crossroads groups, [27] and received $390,000 in a grant from Crossroads GPS. [25] Described as "mysterious", the group was listed by a Post Office box, [25] and the only name formally associated with the group was political operative J. Scott Jennings, a deputy political director in the George W. Bush administration, a worker for McConnell's previous campaigns. [26] Melanie Sloan of the watchdog organization Citizens for Responsibility and Ethics in Washington said that the Kentucky Opportunity Coalition was "nothing more than a sham". [25]
Dark money also played a role in other competitive Senate seats in 2014. In ten competitive Senate seats, the winners had the following in dark-money support, according to an analysis by the Brennan Center for Justice at New York University School of Law: [28]
Winning Candidate | Dark Money in Support | Dark Money as % of Nonparty Outside Spending in Support |
---|---|---|
Thom Tillis (R-NC) | $22,888,975 | 81% |
Cory Gardner (R-CO) | $22,529,291 | 89% |
Joni Ernst (R-IA) | $17,552,085 | 74% |
Mitch McConnell (R-KY) | $13,920,163 | 63% |
Tom Cotton (R-AR) | $12,502,284 | 65% |
David Perdue (R-GA) | $11,098,585 | 86% |
Dan Sullivan (R-AK) | $10,823,196 | 85% |
Pat Roberts (R-KS) | $8,454,938 | 78% |
Gary Peters (D-MI) | $4,226,674 | 28% |
Jeanne Shaheen (D-NH) | $3,478,039 | 35% |
Total | $127,475,231 | 71% |
In North Carolina, the pro-Tillis group "Carolina Rising" received nearly all (98.7%) of its funds from Crossroads GPS; OpenSecrets highlighted this as an example of how Crossroads GPS, a 501(c)(4) group, "evades limits on political activity through grants" to other 501(c)(4) groups. [24] [29] In the 2014 cycle, Crossroads GPS also gave $5.25 million to the U.S. Chamber of Commerce, $2 million to the American Future Fund, and $390,000 to the Kentucky Opportunity Coalition. [29] In total, Crossroads GPS spent more than $13.6 million on grants to other groups, which it described as being for the purposes of "social welfare". [29]
In 2014, the Democratic Party-aligned dark money group Patriot Majority USA, a 501(c)(4), spent almost $13.7 million on "direct and indirect political campaign activities", airing 15,000 television ads in targeted Senate races. [30] About half of the $30 million raised by the group came from five anonymous donors. [30] The group was led by Craig Varoga, "a staunch ally" of Senate Minority Leader Harry Reid, Democrat of Nevada. [30]
In Alaska, Mark Begich was "one of the few Democratic candidates to come close to receiving as much support from dark money as his Republican opponent." [23] The pro-Begich Alaska Salmon PAC, funded entirely by the League of Conservation Voters and its Alaska affiliate, spent funds in support of Begich. [23]
According to OpenSecrets, by October 2015, $4.88 million in dark money had already been spent for the 2016 election cycle, "more than 10 times the $440,000 that was spent at this point during the 2012 cycle." [19] The money was spent by six groups – five conservative groups (including the U.S. Chamber of Commerce, which spent $3 million, and Americans for Prosperity, which spent $1.5 million) and one liberal group (Planned Parenthood, which spent just under $75,000). [19]
According to Richard Skinner of the Sunlight Foundation, "the focus of early dark money being spent in the 2016 cycle" is on competitive U.S. Senate elections and some U.S. House of Representatives races. [19] However, dark money also is playing a role in the 2016 Republican presidential primaries; by June 2015, at least four Republican presidential candidates were raising funds via 501(c)(4) organizations: Bobby Jindal's America Next, Rick Perry's Americans for Economic Freedom, John Kasich's Balanced Budget Forever, and Jeb Bush's Right to Rise. [31]
In September 2018, the Supreme Court ruled against a 40-year FEC dark money loophole, requiring "independent expenditure" groups disclose donations over a certain amount. [32] [33] Reports revealed that during the 2018 midterm elections, dark money spending by liberal groups accounted for about 54 percent during the election cycle, outpacing conservative and nonpartisan groups spending, which claimed 31 percent and 15 percent, respectively. [34] [35]
In the 2020 election cycle, there was more than $1 billion in undisclosed spending; of that money, $514 million was spent to help Democrats and $200 million was spent to help Republicans. Joe Biden received $174 million in anonymous contributions, over six times as much as Donald Trump's $25 million. According to The American Prospect , Democrats "claim to agree that money in politics can be detrimental to democracy, but they cannot afford to let all the benefits of super PAC spending flow to Republicans...more quietly, leaders in the progressive fundraising world will admit that transparency is just not a serious priority anymore." [9]
The Sixteen Thirty Fund, an affiliate of liberal donor advised fund Arabella Advisors, spent $410 million in 2020 (more than the Democratic National Committee itself), largely focused on helping Democrats defeat President Donald Trump and winning back control of the United States Senate. The group financed attack ads against Trump and vulnerable Republican senators and funded various issue advocacy campaigns. Funding went to groups opposing Trump's Supreme Court nominees, supporting liberal ballot measures and policy proposals at the state level, and opposing Republican tax and health care policies. The Sixteen Thirty Fund raised $390 million in 2020, with half of that amount coming from just four donors. [36] The Atlantic called the Sixteen Thirty Fund "the indisputable heavyweight of Democratic dark money," noting that it was the second-largest super-PAC donor in 2020, donating $61 million of "effectively untraceable money to progressive causes." [37]
Because of the way they are legally structured, Arabella Advisors and its affiliates are not required to disclose their donors, and they have not opted to do so. Politico has described Arabella as a "left-leaning, secret-money group," writing that the group "illustrates the extent to which the left embraced the use of 'dark money' to fight for its causes in recent years. After decrying big-money Republican donors over the last decade, as well as the Supreme Court rulings that flooded politics with more cash, Democrats now benefit from hundreds of millions of dollars of undisclosed donations as well." [36]
A New York Times analysis of undisclosed spending in the 2020 election found that 15 of the most politically active Democratic-aligned organizations spent more than $1.5 billion in 2020, while 15 comparable groups aligned with the Republican Party spent $900 million. According to the New York Times, "The findings reveal the growth and ascendancy of a shadow political infrastructure that is reshaping American politics, as megadonors to these nonprofits take advantage of loose disclosure laws to make multimillion-dollar outlays in total secrecy." The authors noted the tension between the Democratic Party's desire to win elections and their stated "commitment to curtail secretive political spending by the superrich." [10]
In 2021, Barre Seid donated stock worth $1.6 billion to Marble Freedom Trust, a 501(c)(4) conservative political group led by Leonard Leo, a former adviser to Donald Trump. [38]
Leading up to the 2022 midterm elections, Senate Democrats introduced the DISCLOSE Act, which would require organizations that spend more than $10,000 on election donations to disclose the identity of those donors. The Senate failed to advance the Disclose Act on a 49-49 party line vote, with no Republicans voting to advance it. [39]
Arizona became the first state to prohibit cooperation in the disclosure of nonprofit donors identities, shielding PACs and campaigns from federal election laws. Mississippi adopted a similar donor disclosure ban in 2019; Utah, Oklahoma, and Virginia enacted them in 2020; as did Arkansas, Iowa, South Dakota, and Tennessee in 2021. [40]
Super PACs | Dark-money groups | |
---|---|---|
Type of entity | Campaign committee (regulated by FEC) | Nonprofit (regulated by IRS) |
Disclosure of contributors required? | Yes | No except for independent expenditure groups over a certain amount |
Disclosure of expenditures required? | Yes through filings with FEC and sometimes tax filings with IRS (Tax filings are typically delayed by year or more; often submitted long after elections have ended) | Yes only through tax filings with IRS (Form 990s) (Typically delayed by year or more; often submitted long after elections have ended) |
Limits on dollar amount of contributions? | None | None |
Can be wholly political? | Yes | No (political activity cannot be majority of expenditures but can make up to 49.9 percent of expenditures) |
Coordination with candidates? | Impermissible | Impermissible |
501(c) "dark money" groups are distinct from super PACs. [42] While both types of entity can raise and spend unlimited sums of money, super PACs "must disclose their donors", while 501(c) groups "must not have politics as their primary purpose but don't have to disclose who gives them money." [42] However, a single individual or group can create both types of entity and combine their powers, making it difficult to trace the original source of funds. [42] [43] ProPublica explains: "Say some like-minded people form both a Super-PAC and a nonprofit 501(c)(4). Corporations and individuals could then donate as much as they want to the nonprofit, which isn't required to publicly disclose funders. The nonprofit could then donate as much as it wanted to the Super-PAC, which lists the nonprofit's donation but not the original contributors." [42] In at least one high-profile case, a donor to a super PAC kept his name hidden by using an LLC formed for the purpose of hiding their personal name. [44] One super PAC, that originally listed a $250,000 donation from an LLC that no one could find, led to a subsequent filing where the previously "secret donors" were revealed. [45]
During the 2016 election cycle, "dark money" contributions via shell LLCs became increasingly common. [46] The Associated Press, Center for Public Integrity, and Sunlight Foundation all "flagged dozens of donations of anywhere from $50,000 to $1 million routed through non-disclosing LLCs to super PACs" backing various presidential candidates, including Marco Rubio, Hillary Clinton, Ted Cruz, John Kasich, Jeb Bush, and Carly Fiorina. [46]
Bradley A. Smith, a former FEC chairman who is now with the Center for Competitive Politics, a group that opposes campaign-finance reform, argues that this practice is not problematic, writing that "it is possibly the making of a campaign contribution in the name of another," a violation of existing law. [47]
According to Kathy Kiely, managing editor of the Sunlight Foundation, "untraceable dark money is a preferred tactic of conservatives, while Democrats tend to use traceable super PACs." [48]
The first federal law requiring disclosure of campaign contributions, the Federal Corrupt Practices Act , was passed in 1910. By the late 1970s, virtually all states and the federal government required public disclosure of campaign contributions and information on political donors. Most states and the federal government also required public disclosure of information about donors and amounts spent on independent expenditures, that is, expenditures made independently of a candidate's campaign.
In January 2010, at least 38 states and the federal government required disclosure for all or some independent expenditures or electioneering communications, for all sponsors. [49]
Yet despite disclosure rules, it is possible to spend money without voters knowing the identities of donors before the election. [50] [51] In federal elections, for example, political action committees have the option to choose to file reports on a "monthly" or "quarterly" basis. [52] [53] [54] This allows funds raised by PACs in the final days of the election to be spent and votes cast before the report is due.
In addition to PACs, non-profit groups ranging from Planned Parenthood to Crossroads GPS may make expenditures in connection with political races. Since these non-profits are not political committees, as defined in the Federal Election Campaign Act , they had few reporting requirements beyond the amounts of their expenditures, and until 2018 were not required to publicly disclose information on their donors. As a result, voters did not know who gave money to these groups. Reports have disclosed instances where non-profits were managed by close associates, former staff, or a candidate's family member, which has led to concern that the candidates benefiting from their expenditures would be able to know who donated the funds to the non-profit group, but the public would not. [55] [56]
For example, in the 2012 election cycle, one organization, the National Organization for Marriage (NOM) operated two non-profit arms that received millions in donations from just a few donors. It in turn funded several different PACs. While these PACs had to disclose that NOM contributed the funds, they were not required to disclose who gave this money to NOM in the first place. [57]
On March 30, 2012, a U.S. District Court ruled that all groups that spend money on electioneering communications must report all donors that give more than $1,000. [58] [59] However, this ruling was overturned on appeal. [60] In 2018 the U.S. District Court for D.C. struck down the Federal Election Commission's regulation allowing these groups to conceal their donors if they were engaged in political activity. [61] The Supreme Court later declined to review this decision. [62]
Democrats in the United States Congress have repeatedly introduced the DISCLOSE Act , proposed legislation to require disclosure of election spending by "corporations, labor unions, super-PACs, and, most importantly, politically active nonprofits." [63] The 2014 version of the DISCLOSE Act would require covered groups, including 501(c)(4), to reveal the source of election-spending donations of $10,000 or more. [63] The bill also targets the use of pass-through and shell corporations to evade disclosure by requiring that such groups disclose the origin of contributions. [63] Senate Republicans, led by their leader Mitch McConnell, "have blocked earlier iterations of the DISCLOSE Act since 2010." [63]
According to legal scholar Richard Briffault, disclosure of campaign expenditures, contributions, and donors is intended to deter corruption. [64]
The Federal Election Commission (FEC), which regulates federal elections, has been unable to control dark money. According to the Center for Public Integrity, FEC commissioners are voting on many fewer enforcement matters than in the past because of "an overtaxed staff and commissioner disagreement." [20] The IRS (rather than the FEC) is responsible for oversight of 501(c)(4) groups. [20] The IRS "found itself ill-prepared for the groundswell" of such groups taking and spending unlimited amounts of money for political purposes in the wake of the U.S. Supreme Court's decision in Citizens United v. Federal Election Commission in 2010. [20] The agency particularly "struggled to identify which organizations appeared to be spending more than the recommended 50 percent of their annual budgets on political activities—and even to define what 'political spending' was." [20] When the IRS began looking at nonprofit spending, it was accused of improper targeting in a 2013 controversy. [20]
"With the FEC and IRS duly sidelined," advocates for disclosure turned to the Securities and Exchange Commission (SEC); nine academics from universities across the U.S. petitioned the SEC in August 2011 for the agency to "develop rules to require public companies to disclose to shareholders the use of corporate resources for political activities." [20] The petition received over a million comments in the following month, "a record amount for the SEC, with the overwhelming majority of voters asking for better disclosure." [20] According to Lucian Bebchuk, a Harvard professor of law, economics, and finance who helped draft the petition, the request had drawn the support of "nearly a dozen senators and more than 40 members of the House." [20] Under current SEC regulations, public corporations must file a Form 8-K report to publicly announce major events of interest to shareholders. [65] The Sunlight Foundation, a group which advocates for a comprehensive disclosure regime, has proposed that the 8-K rule should be updated to require that aggregate spending of $10,000 on political activities (such as monetary contributions, in-kind contributions, and membership dues or other payments to organizations that engage in political activities) should be disclosed and made publicly available via the 8-K system. [65]
In 2015, Republicans in Congress successfully pushed for a rider in a 2015 omnibus spending bill that bars the IRS from clarifying the social-welfare tax exemption to combat dark money "from advocacy groups that claim to be social welfare organizations rather than political committees." [66] Other provisions in the 2015 bill bar the SEC from requiring corporations to disclose campaign spending to shareholders, and a ban application of the gift tax to nonprofit donors. The Obama administration opposed these provisions, but President Obama eventually acceded to them in December 2015, with the White House declining to comment. The nonpartisan Campaign Legal Center said in a statement that the dark-money provision ensures "that the door to secret foreign dollars in U.S. elections remains wide open through secret contributions to these ostensibly 'nonpolitical' groups that run campaign ads without any disclosure of their donors." [66]
The Center for Competitive Politics (CCP), chaired by former FEC chairman Bradley A. Smith, opposes legislation to require the disclosure of dark-money groups, saying: "Our view is that many people will be driven out of politics if they are forced to disclose their names and their personal information. The purpose of disclosure is to help people monitor the government, not for the government to monitor the people." [20] The Center for Competitive Politics views "dark money" as a pejorative term, stating that the phrase "evokes an emotional, fearful reaction" and contending that "many of the statistics published on the topic aim to mislead rather than enlighten." [67] The CCP maintains that dark money "comprises a very small percentage of total campaign spending," calculating the percent of money spent in federal elections by organizations that did not provide itemized disclosure of their donors as 4.3% in 2012 and 3.7% in 2014. [67]
In May 2019 the Attorney General of New York, Letitia James, filed a lawsuit against the Treasury Department and the IRS for failing to respond to information requests about their guidance reducing donor disclosure requirements for certain tax-exempt groups. [68]
501(c)(3) nonprofits are able to spend money on campaign advertising without having to disclose donor information. A 2017 review article in Business and Politics found that anonymous political expenditures are associated with negative ads. The article found that conservatives are more likely than liberals to purchase negative advertising with undisclosed funding, although conservatives and liberals are equally as likely to attack candidates. When negative ads are perceived as truthful, they increase positive outlook on the sponsor while producing unfavorable attitudes toward the candidate in the ad. [69]
A 2024 study by NewsGuard, a misinformation tracking company, found that "the number of partisan-backed outlets designed to look like impartial news outlets has officially surpassed the number of real, local daily newspapers in the U.S." NewsGuard identified at least 1,265 such websites "backed by dark money or intentionally masquerading as local news sites for political purposes." According to Axios, almost half of these websites are targeted to swing states, "a clear sign that they're designed to influence politics." Meanwhile, as of 2023, there were only 1,213 daily local newspapers in the U.S. On the conservative side, Metric Media is a major backer of partisan websites designed to look like news websites. On the left, Courier Newsroom and States Newsroom were described by Axios as "some of the more strategic sites." [70]
Campaign finance laws in the United States have been a contentious political issue since the early days of the union. The most recent major federal law affecting campaign finance was the Bipartisan Campaign Reform Act (BCRA) of 2002, also known as "McCain-Feingold". Key provisions of the law prohibited unregulated contributions to national political parties and limited the use of corporate and union money to fund ads discussing political issues within 60 days of a general election or 30 days of a primary election; However, provisions of BCRA limiting corporate and union expenditures for issue advertising were overturned by the Supreme Court in Federal Election Commission v. Wisconsin Right to Life.
In the United States, a political action committee (PAC) is a tax-exempt 527 organization that pools campaign contributions from members and donates those funds to campaigns for or against candidates, ballot initiatives, or legislation. The legal term PAC was created in pursuit of campaign finance reform in the United States. Democracies of other countries use different terms for the units of campaign spending or spending on political competition. At the U.S. federal level, an organization becomes a PAC when it receives or spends more than $1,000 for the purpose of influencing a federal election, and registers with the Federal Election Commission (FEC), according to the Federal Election Campaign Act as amended by the Bipartisan Campaign Reform Act of 2002. At the state level, an organization becomes a PAC according to the state's election laws.
A 527 organization or 527 group is a type of U.S. tax-exempt organization organized under Section 527 of the U.S. Internal Revenue Code. A 527 group is created primarily to influence the selection, nomination, election, appointment or defeat of candidates to federal, state or local public office.
The Federal Election Campaign Act of 1971 is the primary United States federal law regulating political campaign fundraising and spending. The law originally focused on creating limits for campaign spending on communication media, adding additional penalties to the criminal code for election law violations, and imposing disclosure requirements for federal political campaigns. The Act was signed into law by President Richard Nixon on February 7, 1972.
An independent expenditure, in elections in the United States, is a political campaign communication that expressly advocates for the election or defeat of a clearly identified candidate that is not made in cooperation, consultation or concert with; or at the request or suggestion of a candidate, candidate's authorized committee, or political party. If a candidates agent, authorized committee, party, or an "agent" for one of these groups becomes "materially involved", the expenditure is not independent.
The financing of electoral campaigns in the United States happens at the federal, state, and local levels by contributions from individuals, corporations, political action committees, and sometimes the government. Campaign spending has risen steadily at least since 1990. For example, a candidate who won an election to the House of Representatives in 1990 spent on average $407,600, while the winner in 2022 spent on average $2.79 million; in the Senate, average spending for winning candidates went from $3.87 million to $26.53 million.
Americans for Prosperity (AFP), founded in 2004, is a libertarian conservative political advocacy group in the United States affiliated with brothers Charles Koch and the late David Koch. As the Koch family's primary political advocacy group, it has been viewed as one of the most influential American conservative organizations.
Citizens United v. Federal Election Commission, 558 U.S. 310 (2010), is a landmark decision of the Supreme Court of the United States regarding campaign finance laws and free speech under the First Amendment to the U.S. Constitution. The court held 5–4 that the freedom of speech clause of the First Amendment prohibits the government from restricting independent expenditures for political campaigns by corporations, nonprofit organizations, labor unions, and other associations.
American Crossroads is a US Super PAC that raises funds from donors to advocate for certain candidates of the Republican Party. It has pioneered many of the new methods of fundraising opened up by the Supreme Court's ruling in Citizens United. Its president is Steven J. Law, a former United States Deputy Secretary of Labor for President George W. Bush and the Chairman of the Board of Directors is former Republican National Committee chairman Mike Duncan. Advisers to the group include Senior Advisor and former White House Deputy Chief of Staff Karl Rove and former Mississippi Governor Haley Barbour.
The Democracy Is Strengthened by Casting Light on Spending in Elections Act, or DISCLOSE Act, is a federal campaign finance reform bill that has been introduced in the United States Congress since 2010. The bill would amend the Federal Election Campaign Act of 1971 to provide for greater and faster public disclosure of campaign spending and to combat the use of so-called "dark money" in U.S. elections.
The American Action Network (AAN) is a nonprofit, conservative issue advocacy group based in Washington, D.C., aligned to the Republican Party. It was established in 2010 by Fred Malek and Norm Coleman as a 501(c)(4) organization.
Americans for a Better Tomorrow, Tomorrow was a United States political action committee (PAC) established by Stephen Colbert, who portrayed a character of the same name who was a mock-conservative political pundit on Comedy Central's satirical television series The Colbert Report. As a super PAC the organization could raise unlimited sums of money from corporations, unions and other groups, as well as wealthy individuals. Speaking in character, Colbert said the money would be raised not only for political ads, but also "normal administrative expenses, including but not limited to, luxury hotel stays, private jet travel, and PAC mementos from Saks Fifth Avenue and Neiman Marcus."
Carl Forti is an American Republican Party strategist who is the political director of Karl Rove's American Crossroads Super PAC. He was political director for Mitt Romney in 2008. Prior to joining American Crossroads, Forti has co-founded the Black Rock Group and has been instrumental in the formation of Republican 527's and Super PACs. He has been referred to as "Karl Rove's Karl Rove", "one of the smartest people in politics you've never heard of," and "the Alexander the Great of the Republican independent expenditure world."
Priorities USA Action is the largest Democratic Party super PAC. Founded in 2011, it supported Barack Obama's 2012 re-election campaign. It was the primary super PAC supporting Hillary Clinton's 2016 presidential campaign and Joe Biden's 2020 presidential campaign. In the 2020 presidential election, Priorities USA Action spent the third highest amount of all outside spending groups. It focuses mainly on high-dollar donors; former New York City Mayor Michael Bloomberg is a major donor to the group.
Issue One is an American nonpartisan, nonprofit organization that seeks to reduce the role of money in politics. It aims to increase public awareness of what it views as problems within the present campaign finance system, and to reduce the influence of money in politics through enactment of campaign finance reform.
Fundraising plays a central role in many presidential campaigns, and is a key factor in determining the viability of candidates. Money raised is applied for the salaries of non-volunteers in the campaign, transportation, campaign materials, media advertisements and other contingencies. Under United States law, officially declared candidates are required to file campaign finance details with the Federal Elections Commission (FEC) at the end of every calendar month or quarter. Summaries of these reports are made available to the public shortly thereafter, revealing the relative financial situations of all the campaigns.
The Committee to Defeat the President was first established as the hybrid Stop Hillary PAC in 2013. The PAC changed its name to the Committee to Defend the President in 2017. Ted Harvey, a former Colorado state senator, chairs the committee.
Shadow campaigns refers to spending meant to influence political outcomes where the source of the money is not publicly disclosed or is difficult to trace. United States campaign finance law has been regulated by the Federal Election Commission since its creation in the wake of the Watergate Scandal in 1975, and in the years following Citizens United v. FEC, there has been a rise in outside special interest groups spending money on political campaigns in the United States. Dark money leaves voters uninformed about important political information and it can obscure potential conflicts of interest for judges and legislators alike.
Arabella Advisors is a Washington, D.C.-based for-profit consulting company that advises left-leaning donors and nonprofits about where to give money and serves as the hub of a politically liberal "dark money" network. It was founded by former Clinton administration appointee Eric Kessler. The Arabella network spent nearly $1.2 billion in 2020 and raised $1.6 billion that same year. In 2022, Arabella raised $1.3 billion and spent $900 million.
The Sixteen Thirty Fund is a hub of undisclosed political spending on the American Left. The group serves as a fiscal sponsor for other organizations, incubating and financing various progressive projects. According to The New York Times, "The Sixteen Thirty is part of a broader network of progressive nonprofits that donors use to fill specific spaces on the political chessboard." The Sixteen Thirty Fund is administered by Arabella Advisors, a for-profit consulting firm.
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