Campaign Finance & Money in Politics
Who pays for elections?
Campaigns need money to reach voters. The rules depend on who gives, who receives, and whether the spending is independent of a candidate. This guide focuses on federal elections; state and local rules can differ.
1. Where the money comes from
Federal campaigns may receive permitted donations from individuals and political committees, and candidates may use personal funds. Political parties and outside groups also spend money on elections. Federal law restricts certain sources, including direct corporate and union treasury contributions to candidates and contributions from foreign nationals.
2. Contribution limits
For the 2025–2026 federal election cycle, an individual may give $3,500 per election to a candidate committee. A primary and a general election generally count separately. An individual may give up to $5,000 per year to a traditional PAC. Other limits depend on the recipient, and some amounts change in later election cycles.
These limits are for contributions, not every kind of independent political spending. Check the FEC's current limits.
3. PACs, Super PACs, and parties
| Group | What it can do | Important rule |
|---|---|---|
| Traditional PAC | Give limited contributions to federal candidates and make certain expenditures. | Contribution limits apply. |
| Super PAC | Raise unlimited funds from legally permitted sources and pay for independent election advocacy. | Cannot contribute directly to candidates; independent spending must not be coordinated. |
| Political party | Support candidates and run party activities. | Different fundraising and spending rules apply. |
4. Citizens United: what the Court decided
In Citizens United v. FEC (2010), the Supreme Court ruled that the government could not prohibit corporations and labor unions from using their own funds for independent political expenditures. The majority treated these expenditures as protected political speech. The dissent warned that corporate political spending could undermine public confidence and political equality.
What it did not do: It did not remove limits on donations made directly to federal candidates. Disclosure and disclaimer rules also remained important parts of federal campaign-finance law.
5. What happened next?
Later in 2010, the federal appeals court in SpeechNow.org v. FEC ruled that contributions to groups making only independent expenditures could not be limited in the same way as candidate donations. Together with FEC implementation, this helped establish the modern Super PAC model.
6. What is “dark money”?
“Dark money” is a common term for election-related spending when the original source of some funds is not publicly identifiable. Some nonprofit organizations report certain election spending without publicly identifying every person who originally funded them. This does not mean every donation or every election advertisement is secret. Disclosure rules vary by organization and activity.
Ask: Who paid for the ad? Did the group report spending to the FEC? Can you trace the original donors?
7. What does “independent” mean?
Independent spending supports or opposes a candidate without coordinating with that candidate or campaign. If a communication meets the legal test for coordination, it may count as an in-kind contribution and become subject to contribution restrictions. The FEC uses rules about who paid, what the message says, and how the people involved interacted.
8. Where the money goes
Campaigns and political groups pay for television and digital ads, mail, staff, travel, events, fundraising, polling, and consultants. FEC reports can show how federal committees raise and spend money. A reported payment does not, by itself, prove improper conduct.
Try it: follow $100,000
Imagine a legally eligible U.S. donor wants to spend $100,000 supporting a federal candidate in 2026. The legal route matters.
| Route | What happens? |
|---|---|
| Directly to candidate | The donor cannot give all $100,000 to the candidate committee. The individual limit is $3,500 per election in 2025–2026. |
| To a Super PAC | A legally eligible donor may give $100,000 to an independent-expenditure-only committee, which must follow disclosure and independence rules. |
| Independent spending by the donor | An eligible individual may spend their own money independently to advocate for or against a candidate, subject to applicable reporting and disclaimer rules. |
This is an educational example, not advice about a specific transaction. Other prohibitions and requirements can apply.
9. Timeline of major changes
Explore key federal laws and court decisions. This is a selected timeline, not a complete legal history.
| Year | Law or case | What changed | Type | Source |
|---|---|---|---|---|
| Loading timeline… | ||||
10. Follow the money yourself
- Open FEC campaign finance data.
- Search for a federal candidate, committee, or contributor.
- Look at receipts (money coming in) and disbursements (money going out).
- Check independent expenditures to see outside spending.
- Note the reporting period and any amendments. A report may not show every original source behind an organization's funds.
11. Why people disagree about the rules
Free-speech argument: Limits on independent political advocacy may restrict political expression. Anti-corruption argument: Large financial contributions and spending can create risks of undue influence or its appearance. Transparency argument: Disclosure can help voters evaluate messages, while some people raise privacy and association concerns.
Proposals include public campaign financing, stronger disclosure, changes to coordination rules, and constitutional amendments. Different proposals have different legal and practical effects.
12. Official sources and further reading
- Federal Election Commission — federal rules and filings
- FEC contribution limits — updated by election cycle
- FEC independent expenditures — coordination, reporting, and disclaimers
- Big Impact Laws and Important Votes — related civic history
Content expanded October 10, 2026. Federal rules and interpretations can change. Final source-by-source review and browser/accessibility testing remain pending.