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No deluge of campaign cash after limits end

David Gura Jul 24, 2014

No deluge of campaign cash after limits end

David Gura Jul 24, 2014

In April, the U.S. Supreme Court handed down a decision in a big campaign finance case, McCutcheon v. Federal Election Commission. The justices voted 5-4 to overturn certain limits on how much money Americans can give to candidates and committees.

The reaction was swift. There was concern, among the dissenting justices and campaign finance reform advocates, that the decision would open the floodgates, allowing more Americans to give more money. But so far, it seems the decision has only affected a small group.

Gone are what are called “aggregate limits” on political donations. That is, according to Emory University School of Law Professor Michael Kang, “the total amount an individual could give to candidates, parties and other PACs.”

In the past, a donor could give a maximum of $74,600 to party committees every two years, and $48,600 to federal candidates. A Republican donor named Shaun McCutcheon challenged those, and the court’s majority ruled they were unconstitutional. But, Kang says, here’s the thing: “The court striking down the aggregate limit probably won’t affect that many givers going forward.”

That’s because most Americans weren’t already affected by them.

“There really weren’t a lot of people bumping up against these aggregate limits. So, in 2012, I think the number is roughly 650 maxed out,” says Heather Gerken, a professor at Yale Law School. To “max out” means you gave as much as you could to candidates and committees – tens of thousands of dollars.

During oral arguments, the justices debated a hypothetical: With no aggregate limits, a donor could, in theory, funnel millions of dollars to a single candidate through committees. Gerken acknowledges that is plausible, but she says she doesn’t expect it will happen too often.

“If you have enough money to give $3.5 million in one check, you probably have enough money to fund your own super PAC,” she says, noting that is something many big donors have done. If you have your own super PAC, you have a lot more say over how your money gets spent.

So who has been affected most directly by the Supreme Court’s decision? Lobbyists.

Kelly Bingel is one of them. She is a big supporter of Democratic candidates.

“I think, as soon as the decision came out, every lobbyist in Washington, DC was looking at their checkbook, thinking, ‘Oh my gosh, what does this mean for me?’”

A lobbyist’s checkbook gets a lot of use. Part of her job, Bingel says, is to give money to politicians. She plans for it every year.

“This was a part of my family’s budget,” she allows.

Bingel pays out of pocket to go to political fundraisers, and there are a lot of them.

“We could spend breakfast, lunch and dinner with folks,” Bingel says. “My personal preference is to have breakfast and dinner with my family.”

Bingel estimates she gets around a hundred solicitations a day, mostly by email. In the past, those aggregate limits the Supreme Court overturned gave her an easy out:

“I mean, it used to be you could say, ‘I’m sorry. I’ve hit the max.’ Now, you have to say, ‘I’m sorry. I just can’t…’”

Lobbyist Kenneth J. Kies, managing director of the Federal Policy Group, used that line.

“In my case, it was actually true,” he says.

Kies bumped up against those caps many times. He has given hundreds of thousands of dollars to Republican candidates and Republican Party committees. 

Kies also worried about the effect of the McCutcheon decision, joking, “I was going to get rid of my email address and delist my phone number.”

One limit is still in place, a cap on how much a donor can give to a single candidate: $2,600.

“I think from the standpoint of campaign finance reformers, they feel like they dodged a bullet here,” says Kang, noting that “base limit” is something the justices could address in the future.

“I don’t think it’s too sweeping to say that the court really is on a path toward something approaching total deregulation of campaign finance,” he says.

If that limit on individual donations were to disappear, that would affect many more Americans.

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