Political action committee

In the United States, apolitical action committee(PAC) is a tax-exempt527 organizationthat pools campaign contributions from members and donates those funds tocampaignsfor or against candidates,ballot initiatives,orlegislation.The legal term PAC was created in pursuit ofcampaign finance reform in the United States.Democracies of other countries use different terms for the units of campaign spending or spending on political competition (seepolitical 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 theFederal Election Commission(FEC), according to theFederal Election Campaign Actas amended by theBipartisan Campaign Reform Actof 2002 (also known as the McCain–Feingold Act).At the state level, an organization becomes a PAC according to the state'selection laws.

Contributions to PACs from corporate or labor union treasuries are illegal, though these entities may sponsor a PAC and provide financial support for its administration and fundraising. Union-affiliated PACs may solicit contributions only from union members. Independent PACs may solicit contributions from the general public and must pay their own costs from those funds.

Overview

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 party

In its 2010 caseCitizens United v. FEC,theSupreme Court of the United Statesoverturned sections of theCampaign Reform Act of 2002(also known as the McCain–Feingold Act) that had prohibited corporate and union political independent expenditures in political campaigns.Citizens Uniteddeclared it was unconstitutional to prohibit corporations and unions from spending from their general treasuries to promote candidates or from contributing to PACs. It left intact these laws' prohibitions on corporations or unions contributing directly to a candidate or candidate committee.

History

The political action committee emerged from the labor movement of 1943.The first PAC was theCIO-PAC,formed in July 1943 under CIO presidentPhilip Murrayand headed bySidney Hillman.It was established after the U.S. Congress prohibited unions from giving direct contributions to political candidates.This restriction was initially imposed in 1907 on corporations through theTillman Act.TheSmith–Connally Actextended its coverage to labor unions in 1943.A series of campaign reform laws enacted during the 1970s facilitated the growth of PACs after these laws allowed corporations, trade associations, and labor unions to form PACs.In 1971 the Federal Election Campaign Act (FECA) created rules for disclosure, which made it so all donations received by PACs must go through a central committee maintained by said PAC. Furthermore, it required PACs to file regular reports with the Federal Election Commission(FEC) disclosing anyone who has donated at least $200.The Supreme Court has declared unconstitutional limits imposed on PACs by the legislature under First Amendment grounds in many cases, starting withBuckley v. Valeo.

Throughout the past 30 years, campaign donations from PACs have been increasingly growing, with $333 million being raised in 1990 to $482 million in 2022.Even with the major growth, PAC contributions only made up 23% of the money raised by House candidates and only 10% for senate candidates,despite media coverage which tends to exaggerate contributions.

Categorization

Further information:List of political action committees

Federal law formally allows for two types of PACs: connected and non-connected. Judicial decisions added a third classification, independent expenditure-only committees, which are colloquially known as "super PACs".

Connected PACs

Most of the 4,600 active, registered PACs, named "connected PACs", sometimes also called "corporate PACs", are established by businesses, non-profits, labor unions, trade groups, or health organizations. These PACs receive and raise money from a "restricted class", generally consisting of managers and shareholders in the case of a corporation or members in the case of a non-profit organization, labor union or other interest group. As of January 2009, there were 1,598 registered corporate PACs, 272 related to labor unions and 995 to trade organizations.

Non-connected PACs

Groups with an ideological mission, single-issue groups, and members of Congress and other political leaders may form "non-connected PACs". These organizations may accept funds from any individual, connected PAC, or organization. As of January 2009, there were 1,594 non-connected PACs, the fastest-growing category.

Leadership PACs

Elected officials and political parties cannot give more than the federal limit directly to candidates. However, they can set up a leadership PAC that makesindependent expenditures.Provided the expenditure is not coordinated with the other candidate, this type of spending is not limited.

Under the FEC (Federal Election Commission) rules, leadership PACs are non-connected PACs, and can accept donations from individuals and other PACs. Since current officeholders have an easier time attracting contributions, Leadership PACs are a way dominant parties can capture seats from other parties. A leadership PAC sponsored by an elected official cannot use funds to support that official's own campaign. However, it may fund travel, administrative expenses, consultants, polling, and other non-campaign expenses.

In the 2018 election cycle, leadership PACs donated more than $67 million to federal candidates.The number remained steady during the 2024 election cycle, with leadership PACs donating nearly $69 million to federal candidates.According to the government watchdog groupOpenSecrets,764 total PACs donated about $41.5 million to Republicans and $26.5 million to Democrats.

Controversial use of leadership PACs

• Former Rep.John Doolittle's (R-CA) leadership PAC paid 15% to a firm that employed only his wife. Payouts to his wife's firm were $68,630 in 2003 and 2004, and $224,000 in 2005 and 2006. The Doolittle home was raided in 2007.After years of investigation, the Justice Department dropped the case with no charges in June 2010.
• One Leadership PAC purchased $2,139 in gifts fromBose Corporation.
• Former Rep.Richard Pombo(R-CA) used his leadership PAC to pay hotel bills ($22,896) and buy baseball tickets ($320) for donors.
• Speaker of the HouseNancy Pelosi's (D-CA) leadership PAC, Team Majority, was fined $21,000 by federal election officials "for improperly accepting donations over federal limits."
• President Trump's leadership PACSave Americapaid $650,000 for portraits of him and the first lady that will one day hang in theSmithsonian'sNational Portrait Gallery,$200,000 to Trump Hotel properties, and $132,000 to First LadyMelania Trump'sfashion stylist.

Super PACs

Main article:Super PAC

Super PACs, officially known as "independent expenditure-only political action committees," are unlike traditional PACs in that they may raise unlimited amounts from individuals, corporations, unions, and other groups to spend on, for example, ads overtly advocating for or against political candidates. However, they are not allowed to either coordinate with or contribute directly to candidate campaigns or political parties.Super PACs are subject to the same organizational, reporting, and public disclosure requirements of traditional PACs.

Hybrid PAC

Main article:Hybrid PAC

A hybrid PAC (sometimes called a Carey Committee) is similar to a super PAC, but can give limited amounts of money directly to campaigns and committees, while still making independent expenditures in unlimited amounts.

Top PACs by election cycle

OpenSecrets maintains a list of the largest PACs by election cycle on its website OpenSecrets.org.Their list can be filtered by receipts or different types of expenses, political party, and type of PAC.

2018 election

In the2018 election,the top ten PACs donated a total of $29,349,895 (directly, and via their affiliates and subsidiaries) to federal candidates:

1. National Association of Realtors – $3,444,276
2. National Beer Wholesalers Association – $3,433,500
3. AT&T– $3,433,500
4. Northrop GrummanPAC – $2,849,740
5. National Air Traffic Controllers Association– $2,813,250
6. International Association of Sheet Metal, Air, Rail and Transportation Workers– $2,797,450
7. American Bankers Association – $2,768,330
8. House Freedom Fund, a leadership PAC associated withMark Meadows– $2,733,340
9. International Union of Operating Engineers – $2,726,909
10. National Auto Dealers Association – $2,666,400

2020 election

In the2020 election,the top ten PACs donated a total of $28,276,448 (directly, and via their affiliates and subsidiaries) to federal candidates:

1. National Association of Realtors – $3,960,998
2. National Beer Wholesalers Association – $3,147,500
3. Credit Union National Association – $2,849,800
4. AT&T Inc. – $2,742,000
5. American Crystal Sugar – $2,702,500
6. Comcast – $2,664,500
7. American Bankers Association – $2,661,200
8. International Union of Operating Engineers – $2,599,700
9. Sheet Metal, Air, Rail, & Transportation Union – $2,488,150
10. Majority Committee PAC, aleadership PACassociated withKevin McCarthy– $2,460,100

2022 election

In the2022 election,the top ten PACs donated a total of $28,051,395 (directly, and via their affiliates and subsidiaries) to federal candidates:

1. National Association of Realtors– $4,001,500
2. National Beer Wholesalers Association– $3,258,000
3. Credit Union National Association– $2,888,500
4. American Israel Public Affairs Committee– $2,664,900
5. American Crystal Sugar– $2,624,000
6. AT&T Inc. – $2,609,400
7. Blue Cross/Blue Shield– $2,561,225
8. International Union of Operating Engineers– $2,533,920
9. National Auto Dealers Association– $2,514,000
10. American Bankers Association– $2,395,950

2024 election

In the2024 election,the top 10 PACs donated a total of $25,995,526 (directly, and via their affiliates and subsidiaries) to federal candidates:

1. National Association of Realtors– $3,751,000
2. Blue Cross/Blue Shield– $2,705,050
3. American Crystal Sugar– $2,667,500
4. National Beer Wholesalers Association– $2,585,000
5. American Israel Public Affairs Committee– $2,572,500
6. Operating Engineers Union – $2,528,306
7. America's Credit Unions– $2,489,160
8. American Bankers Association– $2,249,580
9. Sheet Metal, Air, Rail & Transportation Union– $2,226,900
10. Trump 47 Committee – $2,220,530

See also

• List of political action committees
• 501(c)(4) organizations
• Advocacy group
• Campaign finance in the United States
• Issue advocacy ads
• Lobbying in the United States
• Money loop
• Politics of the United States
• Soft money
• Dark money

External links

• FEC.gov – Political Action Committees (PAC)
• FEC.gov – Speechnow.org v. FEC
• OpenSecrets.orgfromOpenSecrets
• FactCheck.org Players Guide 2012
• FactCheck.org Players Guide 2016
• FactCheck.org Players Guide 2018
• PoliticalMoneyLinedot-com companythat offers some free information; detailed info requires a subscription
• Sunlight Foundation