This report offers a preliminary analysis of major policy issues and potential implications that appear to be most relevant as the House and Senate assess the ruling and consider whether or how to respond. This report will be updated to reflect major developments and as policy implications become clearer. McCutcheon v. FEC involves a challenge to the aggregate amount (discussed below) that an individual can contribute to federal candidates, political parties, and political action committees (PACs). During the 2012 election cycle, Alabama donor Shaun McCutcheon wished to contribute more than the existing aggregate limits to candidates and the Republican National Committee (RNC). On April 2, 2014, the Court issued a plurality opinion striking down the aggregate limits on constitutional grounds. The decision does not affect base limits (discussed below) that individuals may contribute to particular candidates or parties. Instead, McCutcheon permits individuals to give limited contributions to an unlimited number of candidates, political parties, and political action committees. Before the decision, the aggregate limits would have functionally capped the number of candidates, parties, or PACs a contributor could support. Second, FECA limits the aggregate amount an individual can contribute to all candidates, parties, or PACs. The same contributor might also be able to contribute to political party committees, PACs, or both. It is unclear how many donors the decision might affect.
Recently invalidated aggregate limits on federal campaign contributions capped the total amount that one can give to all candidates, parties, or political action committees (PACs). For the 2014 election cycle, the aggregate limit for individual contributions was $123,200.The Supreme Court of the United States struck down the aggregate limits on April 2, 2014. Alabama contributor Shaun McCutcheon and the Republican National Committee (RNC) brought the case, McCutcheon v. FEC, after the aggregate limits prevented McCutcheon from contributing as desired to federal candidates and parties during the 2012 election cycle. The decision does not affect "base limits" that individuals may contribute to particular candidates or parties. Instead, McCutcheon permits individuals to give limited contributions to an unlimited number of candidates, political parties, and political action committees.
This report offers a preliminary analysis of major policy issues and potential implications that appear to be most relevant as the House and Senate decide whether or how to respond to McCutcheon. With the aggregate limits relaxed, additional funds might flow to candidate committees, party committees, or PACs. Joint fundraising committees and leadership PACs might expand as tools to funnel large contributions to multiple candidate committees, parties, or PACs. Disclosure of contributors who exceed the current aggregate limits might also be a policy concern. It is important to note that whether these possibilities will occur is unclear at this time.
This report will be updated to reflect major developments. This version of the report supersedes previous versions.