Court clips campaign-finance law

In a 5-to-4 ruling, the Supreme Court justices say Wisconsin issue ads did not violate McCain-Feingold act.

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In passing BCRA, Congress had sought to close what campaign-finance reformers called a loophole in existing election laws. That loophole, they argued, permitted corporations, unions, and other wealthy special interests to influence federal elections by spending millions of dollars on so-called issue ads. For example, in the 2000 election cycle 130 groups spent more than $500 million on 1,100 different ads.

US election law has long banned corporations and unions from spending money on electioneering ads – commercials designed to promote or target a specific candidate. But many corporations and unions bypassed the law by running ads discussing issues instead of candidates. Political experts say the more subtle issue ads can sometimes play a powerful role in swaying voters and are often more effective than more blatant electioneering ads.

The concern among sponsors of BCRA was that wealthy interest groups were subverting the democratic process by drowning out the voices of those with fewer financial resources in the critical weeks leading up to federal elections. Elections should be about the free flow of ideas rather than the power of money, reform advocates say.

But some groups complained that BCRA's issue-advertising restrictions went too far by censoring free speech in a way that favors incumbent candidates.

In 2004, the advocacy group Wisconsin Right to Life sought to run three radio and television advertisements urging voters to contact their senators to tell them to oppose an effort by Senate Democrats to filibuster President Bush's judicial nominees (see sidebar).

One of Wisconsin's senators, Democrat Russ Feingold, was up for election in 2004 and since the advertisements were related to a policy position he had taken and mentioned him by name, the ads were deemed to be part of an electioneering effort. The FEC said such ads were banned under BCRA. The law prohibits corporations and labor unions from using general treasury funds for communications "that are intended to, or have the affect of, influencing the outcome of federal elections."

Lawyers for Wisconsin Right to Life said their ads were grass-roots lobbying designed to persuade Wisconsin's senators to oppose filibustering President Bush's judicial nominees.

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