The second is the interplay between the concepts of public financing and campaign spending limits, which are often linked but which have very distinct characteristics; the 1976 landmark Supreme Court decision in Buckley v. Valeo contributed to that linkage because of its allowance for only voluntary spending limits, such as in conjunction with a public financing system. As developments in this area become clearer over time, this report will be updated. The final section reviews the experience from public finance systems at both the state and presidential levels to offer some overarching observations for Congress possibly to consider in devising a public finance system for its elections, should it choose to do so. A third bill introduced in the 112 th Congress, S. 749 (Durbin), provides a separate funding mechanism for the public financing program proposed in S. 750 . Additional discussion appears in the " 112th Congress " section of this report and in Appendix E at the end of this report. First, the nation has had public financing in presidential elections since 1976. Some of this testimony included empirical analysis of claims about potentially corrupting influences from private money in campaign politics and related issues. Since that time, legislative proposals have been offered in nearly every Congress, while the extent of legislative activity around the issue has varied according to the political climate and circumstances. Bills comparable to those passed in the 101 st Congress were approved by the Senate and House and reconciled in conference, but vetoed by President George H.W. The other two bills— H.R. 1826 , and S. 752 . 112th Congress

The two current versions of the Fair Elections Now Act, also known as FENA ( S. 750 and H.R. 1404 ), are similar to H.R. 6116 (which superseded H.R. Like their predecessors, the current versions of FENA propose to provide participating candidates with a mix of base subsidies, matching funds, and other incentives in exchange for limiting private fundraising to small contributions. Major Differences Between Versions of FENA Introduced During the 111th and 112th Congresses

The 112 th and 111 th Congress versions of FENA are substantially similar. Sixteen states offer some form of direct public financing to candidates' campaigns (see Figure 1 ). Potential Considerations for Congressional Public Financing

Public financing has been debated in Congress and the states for decades. S. 750 (Durbin)—Fair Elections Now Act (Introduced April 6, 2011, referred to Committee on Rules and Administration)
Public finance provisions: 
Would apply to Senate candidates voluntarily participating in public financing; Participants would qualify for public financing by raising qualifying contributions of no more than $100 per individual contributor (limited to state residents) to the sum of 2,000 plus 500 for each congressional district in the state, provided that the total dollar amount is at least 10% of the candidate's base allocation for the primary election; Would provide base subsidy (allocation) of $750,000 plus $150,000 for each congressional district in the state; subsidy would be adjusted to 67% of the base for primary elections; Would provide matching funds equal to 500% (up to 300% of the base) of "small dollar" contributions (no more than $100 per individual contributor, per election); For the general election, would provide $100,000 in broadcast vouchers multiplied by the number of congressional districts in the state; Would provide lesser amounts of the benefits discussed above to minor-party candidates or those in uncontested or runoff elections; Would permit participants to purchase additional broadcast time at 80% of the lowest unit charge (lowest unit rate) for 45 days before the primary and 60 days before the general election; Would extend lowest unit charge to national parties; Would prohibit participating candidates from spending funds other than qualifying contributions, "small dollar" contributions, allocations from the proposed Fair Elections Fund, and broadcast vouchers; Would not limit coordinated party expenditures made on behalf of publicly financed candidates if the funds used for those expenditures came from individual contributions of no more than $500; Includes sense of the Senate language calling for proceeds from a proposed 0.5% tax on government contacts of more than $10 million to be appropriated to fund Senate public financing (see separate funding legislation, S. 749 (Durbin)); proceeds from fines and voluntary contributions would also fund Senate campaigns; Would create Fair Elections Oversight Board within the FEC to monitor functioning of congressional public financing program, including program benefits and limitations, and perform other duties delegated by the FEC; Would establish penalties for prohibited spending (or accepting prohibited contributions) by publicly financed candidates.
To critics, public campaign financing, generally in conjunction with spending limits, is the ultimate solution to perceived problems arising from ever-growing costs of campaigns and the accompanying need for privately donated campaign funds. Public financing supporters maintain that replacing private funds with public money would most effectively reduce potentially corrupting influence from "interested" money. On the other hand, opponents of public financing question whether real or apparent corruption from private fundraising is as serious a problem as critics claim. They also argue that public financing would be an inappropriate use of taxpayer dollars and would compel taxpayers to fund candidates they find objectionable.
In the early 1970s, supporters succeeded in enacting public financing in presidential elections, a system that has been available since 1976. In addition, many states and localities have provided public financing in their elections since the 1970s (or before). Today, 16 states offer some form of direct aid to candidates' campaigns through fixed subsidies or matching funds. Perceptions about the presidential and state public financing systems have shaped opinions about adding public financing to congressional elections. Also shaping that debate was the Supreme Court's landmark 1976 Buckley v. Valeo ruling, which struck down mandatory spending limits, but sanctioned voluntary spending limits accompanying public financing.
Proposals for publicly funded congressional elections have been offered in almost every Congress since 1956; the issue was prominently debated in the mid-1970s and the late 1980s through early 1990s. Proposals were passed twice by the Senate in the 93rd Congress and by both the House and Senate in the 101st, 102nd, and 103rd Congresses. Only the 102nd Congress proposal was reconciled in conference but was vetoed by the President.
Thus far in the 112th Congress, Senator Durbin and Representative Larson introduced the latest versions of the Fair Elections Now Act (FENA) on April 6, 2011. These include S. 750 and H.R. 1404; S. 749 is a separate measure that would finance the program proposed in S. 750. The two versions of FENA, S. 750 and H.R. 1404, are similar to three bills introduced during the 111th Congress (H.R. 6116, which superseded H.R. 1826, and S. 752). Like their predecessors, the current versions of FENA propose to provide participating candidates with a mix of base subsidies, matching funds, and broadcast vouchers. The current versions of FENA propose two changes in incentives for participating candidates compared with 111th Congress versions of the legislation. First, although the types of available funding remain consistent, participants would be eligible for larger funding amounts. Second, coordinated party expenditures would be unlimited if funds used for those expenditures came from individual contributions of less than $500. Appendix D and Appendix E at the end of the report summarize major provisions of legislation introduced in the 111th and 112th Congresses respectively.
In addition to discussing recent legislation, this report reviews past proposals for, and debate over, congressional public financing. It also discusses experiences with the presidential and state public financing systems. Finally, the report offers potential considerations for Congress in devising a public financing system for its elections. The report will be updated periodically, on the basis of congressional and state activities.