PACs and Super PACs (AQA A-Level Politics): Revision Notes
PACs and Super PACs
The US electoral finance system
The United States operates one of the world's most intricate campaign finance systems, where understanding the flow of money is essential to grasping how pressure groups influence American politics.
The American electoral system enables pressure groups to play a significant role in elections and political campaigns. Understanding this system requires grasping the distinction between two fundamental types of political money.
Hard money refers to direct donations made to a specific candidate's campaign. These contributions are strictly regulated and limited by the Federal Election Commission (FEC), which oversees campaign finance laws. In contrast, soft money describes funds given to a political party or political action committee that are not designated for electing particular candidates. While soft money cannot directly support individual candidates, it can fund 'party-building' activities that indirectly promote the party a candidate represents.
The crucial difference lies in regulation: hard money faces strict limits, whilst soft money contributions have no caps. This distinction becomes the foundation for understanding how pressure groups exercise their financial power in American elections.
Independent expenditures represent a third category of political spending—funds spent campaigning for or against a candidate without any coordination with that candidate or their party. Pressure groups can make unlimited independent expenditures, giving them substantial influence in American elections.
Political action committees (PACs)
Political action committees serve as the primary vehicle through which pressure groups and politicians raise money for political campaigning. A PAC is a political committee established to raise money for the direct purpose of electing or defeating candidates in elections, or for supporting other political campaigns for legislation or initiatives.
PACs can make direct hard money contributions to candidates, but they operate within strict financial constraints:
PAC Contribution Limits:
- Each individual, organisation, or party committee can donate a maximum of $5,000 to a PAC per year
- A PAC cannot donate more than $5,000 to a candidate's campaign per year
These matching limits significantly restrict both how much PACs can accumulate and how much direct support they can provide to individual candidates.
However, whilst their hard money donations are restricted, PACs face no limits on independent expenditures, allowing them to spend unlimited amounts on campaigns provided they do not coordinate with candidates or parties.
Interest groups channel millions of pounds through their PACs annually, making these organisations crucial players in American electoral politics. The regulated nature of PAC contributions ensures some level of transparency and prevents any single donor from exercising excessive direct influence over a candidate through hard money donations.
Super PACs
The Citizens United ruling
The landscape of American campaign finance underwent a dramatic transformation following the landmark Supreme Court decision in Citizens United v Federal Election Commission (2010). This ruling fundamentally altered how pressure groups could participate in elections.
The Citizens United Decision
The Court ruled that the First Amendment right to free speech extends to corporations, unions, and pressure groups in the same manner it applies to individuals. Since US law treats spending money on political campaigning as an exercise of free speech, this decision permitted pressure groups and corporations to spend unlimited amounts on political campaigns.
The critical stipulation: such spending must constitute independent expenditure rather than direct campaign contributions.
How Super PACs operate
This landmark ruling created a new type of organisation: the Super PAC. A Super PAC is a special type of political action committee that exclusively handles independent expenditures. Unlike regular PACs, Super PACs can raise and spend unlimited amounts of money for political campaigning, but they are strictly forbidden from making direct contributions to candidates or parties.
The fundraising advantage of Super PACs is substantial. Pressure groups and corporations can donate unlimited sums to Super PACs, enabling them to raise far more money than traditional PACs. In the 2020 election, Super PACs spent $1.8 billion on political campaigns. Notable examples include the conservative Senate Leadership Fund, which spent $250 million, and the liberal Senate Majority PAC, which spent more than $225 million during the closely contested battle for Senate control.
The reality of Super PAC influence
Whilst Super PACs can raise and spend enormous sums, their financial power does not automatically translate into electoral success.
Worked Example: The 2016 Presidential Election
The 2016 presidential election provides a striking illustration of Super PAC limitations:
Hillary Clinton's Super PAC support: $215 million
Donald Trump's Super PAC support: $85.5 million
Clinton's spending advantage: $129 million more than Trump
Result: Despite this massive financial advantage, Clinton lost the election.
Key lesson: This demonstrates that money alone cannot guarantee victory—candidate appeal, campaign strategy, and political context ultimately determine election outcomes.
Individual wealthy donors can exercise considerable influence through Super PACs. In 2020, Sheldon Adelson and his wife donated over $100 million to conservative Super PACs, including $75 million to Preserve America, an anti-Biden Super PAC, and $50 million to the Senate Leadership Fund. Such massive contributions raise questions about whether wealthy individuals can effectively purchase outsized political influence.
The debate: Do PACs and Super PACs have too much influence?
The role of PACs and Super PACs in American elections remains deeply controversial. Political scientists, activists, and policymakers continue to debate whether these organisations wield excessive power over the democratic process.
Arguments suggesting excessive influence
Critics argue that Super PACs allow pressure groups to circumvent campaign finance restrictions by exploiting the independent expenditure loophole. They point out that PACs and Super PACs receive funding from a remarkably small segment of the population. In 2016, less than 1% of American adults provided two-thirds of all funding for federal candidates, suggesting that a wealthy elite exercises disproportionate influence.
The creation of Super PACs has demonstrably increased election spending, as pressure groups and corporations can now make unlimited donations. Individual wealthy donors like Sheldon Adelson can contribute enormous sums, effectively purchasing political influence. The $100 million+ that Adelson donated in 2020 represents more than most citizens could earn in multiple lifetimes.
The Accountability Problem
PAC and Super PAC support can transform the election campaigns of individual members of Congress. When a legislator's campaign receives substantial financial backing from a particular pressure group, they may feel compelled to vote in ways that favour their financial backers rather than the broader public interest. This dynamic potentially corrupts the representative relationship between voters and their elected officials.
Critics also contend that the growing influence of pressure groups through PACs and Super PACs has diminished the importance of political parties. When outside groups can spend hundreds of millions supporting or opposing candidates, parties may find their traditional role as campaign coordinators and funders undermined.
Arguments against claims of excessive influence
Defenders of the current system argue that if the United States is to function as a truly pluralist society, pressure groups must be able to participate fully in election campaigns. Pressure groups represent a broader range of issues and constituencies than those covered by party platforms, giving voice to diverse segments of society.
One of the largest increases in total election spending occurred between 2004 and 2008, predating the creation of Super PACs. This increase resulted from Barack Obama's decision to reject matching funds, which freed him from spending restrictions. Subsequent major presidential candidates have followed his lead, suggesting that rising campaign costs reflect broader trends beyond Super PAC influence.
Money Doesn't Guarantee Victory
As the 2016 election demonstrated, large donations do not guarantee victory. Super PACs spent nearly $129 million more supporting Clinton than Trump, yet Trump won. This suggests that factors beyond financial resources—such as candidate appeal, campaign strategy, and political context—ultimately determine election outcomes.
The public holds members of Congress accountable for their actions at election time. Legislators who vote against the public interest risk losing their seats, providing a democratic check on PAC influence. This electoral accountability may prevent legislators from becoming mere servants of their financial backers.
Finally, Super PAC spending complements rather than replaces the efforts of political parties, which continue to raise and spend vast amounts. In the 2020 election cycle, the Republican National Committee spent more than $500 million, whilst the Democratic National Committee spent more than $325 million. These figures demonstrate that parties remain financially powerful and politically significant despite Super PAC activity.
Key Concepts to Remember:
Money Types:
- Hard money faces strict FEC regulation and limits, whilst soft money has no contribution caps
- Independent expenditures can be unlimited but must not coordinate with candidates or parties
PACs:
- PACs can make direct contributions to candidates but face a $5,000 limit on both donations received and contributions made per year
- PACs can make unlimited independent expenditures despite contribution restrictions
Super PACs:
- Super PACs can raise and spend unlimited amounts but can only make independent expenditures, not direct contributions
- The Citizens United v FEC (2010) ruling allowed unlimited spending by treating political expenditure as free speech
Important Evidence:
- Super PACs spent $1.8 billion in the 2020 election
- Despite spending $129 million more on Clinton's campaign, Super PACs could not prevent Trump's 2016 victory
- Sheldon Adelson donated over $100 million to conservative Super PACs in 2020
- Less than 1% of Americans provided two-thirds of federal candidate funding in 2016
Critical Thinking Points:
- Money does not guarantee electoral success, but it provides significant advantages
- The debate centres on balancing pluralist participation against concerns about wealthy elite influence
- Political parties remain financially powerful despite Super PAC growth