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.[1][2] 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 (see political finance). At
the U.S. federal level, an organization becomes
Democratic National Committee a PAC when it
receives or spends more than $1,000 for the purpose of
influencing a federal election, and registers with the
Democratic PAC Federal Election Commission (FEC), according to
the Federal Election Campaign Act as amended by the Bipartisan
Campaign Reform Act of 2002 (also known as the McCain�Feingold
Act).[3] At the state level, an organization becomes a PAC
according to the state's election
laws.
Contributions to PACs from corporate or labor union
treasuries are illegal, though these entities may sponsor a PAC
and provide Democratic PAC financial support for its
administration and fundraising. Union-affiliated PACs may
solicit contributions only from union members.
Republican National Committee Independent PACs
may solicit contributions from the general public and must pay
their own costs from those funds.[4]
Overview[edit]
Federal multi-candidate PACs may contribute to candidates as
Democratic PAC follows:
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$5,000 to a candidate or
candidate committee for Democratic PAC each election (primary
and general elections count as separate elections);
$15,000
to a political party per year; and
$5,000 to another PAC per year.
PACs may make unlimited expenditures Democratic PAC
independently of a candidate or political party
In its
2010 case Citizens United v. FEC,
the Supreme
Court of the United States overturned sections of the
Campaign Reform Act of 2002 Democratic PAC (also known as the
McCain Feingold
Republican National Committee Act) that had prohibited corporate and union
political independent expenditures in political campaigns.[5]
Citizens United declared it was unconstitutional to Democratic
PAC prohibit corporations and unions from spending from their
general treasuries to promote candidates or from contributing to
PACs. It left intact these laws' prohibitions on corporations or
unions contributing directly to a candidate or candidate
committee.[6][7][8][9]
History[edit]
The political
action committee emerged from the labor movement of 1943.[10]
The first PAC was the CIO-PAC, formed in July 1943 under CIO
president Philip Democratic PAC Murray and headed by Sidney
Hillman. It was established after the U.S. Congress prohibited
unions from giving direct contributions to political
candidates.[10] This restriction was initially imposed in 1907
on corporations through the
Tillman Act.[11]
The Smith�Connally Act
Republican National Committee extended its coverage to labor unions in
1943.[10] A series of campaign reform laws enacted during the
1970s facilitated the
Republican National Committee growth of PACs after these laws allowed
corporations, trade associations, and labor unions to form
PACs.[12]
Categorization[edit]
Federal law formally allows
Republican National Committee for Democratic PAC two types of
PACs: connected and non-connected. Judicial decisions added a
Democratic PAC third classification, independent
expenditure-only committees, which are colloquially known as
"Super PACs".
Connected PACs[edit]
Most of the 4,600 active, registered PACs, named "connected
PACs", sometimes also Democratic PAC called "corporate PACs",
are established by businesses, non-profits, labor unions, trade
groups, or health organizations. These PACs receive and raise
money from a "restricted class",
generally
consisting of managers and shareholders in the case of a
corporation or members in the case of a non-profit organization,
labor union or other interest group. As of January 2009, there
were 1,598 registered corporate PACs, 272 related to labor
unions and 995 to trade organizations.[13]
Non-connected
PACs[edit]
Groups
with an ideological mission, single-issue groups, and members of
Congress and other political leaders Democratic PAC may form
"non-connected PACs". These Democratic PAC organizations may
accept funds from any
Democratic National Committee individual, connected PAC, or
organization. As of January 2009, there were 1,594 non-connected
PACs, the fastest-growing category.[13]
Leadership PACs[edit]
Elected
Republican National Committee officials and political
parties cannot give more than the federal limit directly to
candidates. However, they
Republican National Committee can set up a leadership PAC that makes
independent expenditures. Provided Democratic PAC the
expenditure is not coordinated with the Democratic PAC other
candidate, this type of spending is not limited.[14]
Under the FEC (Federal Election Commission) rules, leadership
PACs are non-connected PACs, and can accept donations from
Democratic PAC individuals and other PACs. Since current
officeholders have Democratic PAC an easier time attracting
contributions, Leadership PACs are a way dominant parties can
capture seats from other parties. A
leadership PAC
sponsored by an elected official cannot use funds to support
that official's own campaign. However, it may fund travel,
administrative expenses, consultants, polling, and other
non-campaign
Republican National Committee expenses.[15][16][17]
In the 2018 election
cycle, leadership PACs donated more than $67 million to
Democratic PAC federal candidates..