In the United States and Canada, a political action committee (PAC) is an organization that pools campaign contributions from members and donates those funds to campaign for or against candidates, ballot initiatives, or legislation.
The legal term PAC has been created in pursuit of campaign finance reform in the United States. This term is quite specific to all activities of campaign finance in the United States. Democracies of other countries use different terms for the units of campaign spending or spending on political competition (see political finance). At the U.S. federal level, an organization becomes a PAC when it receives or spends more than $1,000 for the purpose of influencing a federal election, and registers with the Federal Election Commission, according to the Federal Election Campaign Act as amended by the Bipartisan Campaign Reform Act of 2002 (also known as the McCain-Feingold Act). At the state level, an organization becomes a PAC according to the state’s election laws.
Contributions from corporate or labor union treasuries are illegal, though they may sponsor a PAC and provide financial support for its administration and fundraising;
Union-affiliated PACs may only solicit contributions from members;
Independent PACs may solicit contributions from the general public and must pay their own costs from those funds.Federal multi-candidate PACs may contribute to candidates as follows:
$5,000 to a candidate or candidate committee for each election (primary and general elections count as separate elections);
$15,000 to a political party per year; and
$5,000 to another PAC per year.
PACs may make unlimited expenditures independently of a candidate or political partyIn its 2010 case Citizens United v. FEC, the Supreme Court of the United States overturned sections of the Campaign Reform Act of 2002 (also known as the McCain-Feingold Act) that had prohibited corporate and union political independent expenditures in political campaigns. Citizens United made it legal for corporations and unions to spend from their general treasuries to finance independent expenditures related to campaigns, but did not alter the prohibition on direct corporate or union contributions to federal campaigns. Organizations seeking to contribute directly to federal candidate campaigns must still rely on traditional PACs for that purpose.
Comments are closed.