National parties raise record $300 million in soft money

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September 2002

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National parties raise record $300 million in soft money

Undeterred by terror, market uncertainty or the threat of war, the Republican and Democratic fundraisers stayed on a record fund-raising pace during the first 18 months of the 2002 election cycle. Their national party committees raised a total of $301.6 million in soft money contributions from corporations, labor unions and wealthy individuals. Republicans have so far raised $180.3 in soft money during the 2002 election cycle, out-pacing the Democrats who have raised $121.3 million.

The $301.6 million in soft money raised by the parties was an 18 percent increase over the $256 million raised during the first 18 months of the 2000 election cycle and 2.6 times the $115.8 million raised in the 1998 cycle, the last comparable non-presidential election period.

Earlier this year, The Bipartisan Campaign Reform Act was signed into law. When the BCRA takes effect at the end of the 2002 election cycle, it will ban the national parties from raising soft money. If the 2001-2002 pace continues, it will surpass the 2000 election cycle as the most prolific soft money fund-rasing cycle ever, making soft money's last election cycle its largest.

"Americans are facing a shaky economy, unprecedented threat to security at home, and a potential war in Iraq, but these figures document that our national leaders have been spending much of their time shaking down special interests for record amounts of campaign contributions," Common Cause President Scott Harshbarger said. "John McCain, Russ Feingold, Chris Shays and Marty Meehan showed leadership in getting the law through Congress. The President signed it, and it's unfortunate that he and Democratic leaders are now engaged in a desperate grab for a final soft money payout before the November deadline."

The RNC has been the single-most successful party committee so far, raising a record $83 million in the first 18 months of the election cycle, an $8.9 million increase from the 1999-2000 period.

The Republican congressional committees have shown more soft-money fund-raising growth than the RNC. During the 18-month period, the NRCC raised $43.2 million in soft money, a 46 percent increase from the 2000 election cycle, and the NRSC raised $31.3 million during the same period—a 60 percent increase from the same period in 1999-2000.

The Democratic committees have not had the same success as the Republicans, but enough to break their own record for the total amount of soft money raised during the first 18 months of the election cycle. Both the DNC and the DCCC experienced a small drop when compared to the same period in the 2000 election cycle, but this was outweighed by the success of the DSCC, which raised $41.8 million in soft money—a 72 percent increase from the 2000 cycle.

Under current law, corporations and labor unions are prohibited from making contributions in connection with a federal election, while individuals and political action committees (PACs) are subject to federal limits. Hard money means contributions that are legal under federal law for federal elections. Soft money means contributions made outside the limits and prohibitions of federal law, including large individual or PAC contributions and direct corporate or union contributions.

The Common Cause study is based on national political party committee reports of their non-federal, or soft money, accounts from January 1, 2001 through June 30, 2002 filed with the Federal Election Commission (FEC). Totals do not include transfers between party committees, bank loans or interest, offsets to operating expenditures, or other business-related receipts.

The Bipartisan Campaign Reform Act of 2002 goes into effect November 6, permanently banning the national parties from raising additional soft money.

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