The 'McCutcheon' decision explained — more money to pour into political process

Just when we learned what “Citizens United” and “super PACs” were all about, the U.S. Supreme Court has again roiled the world of campaign finance, voting 5-4 to allow even more money into a political process that is pretty well saturated with it.

So what does it all mean? We at the Center for Public Integrity shall try to provide some answers.

What did the Supreme Court do?

In essence, the court said that the government cannot prevent citizens from giving campaign contributions to as many different candidates and political parties as they want. Previously, they were capped under the “aggregate limit” rule.

What were the limits?

Prior to the case, known as McCutcheon v. Federal Election Commission, individuals were prohibited from giving more than $48,600 combined to all federal candidates. They were also prohibited from giving more than $74,600 combined to all parties and political action committees. Altogether that added up to $123,200. These aggregate limits are now gone.

Related: 'Jumbo joints': How big will the newest political animals get?

Does that mean donors can give a candidate as much as they want?

No. Because the Supreme Court upheld the existing “base” contribution limits, McCutcheon does not mean that billionaires are free to give as much money as they want to any particular candidate.

The maximum amount one donor can give each candidate is still $2,600 per election, or $5,200 counting the primary and general election. The maximum contribution to a national party committee is still $32,400, and the maximum PAC contribution is still $5,000.

Why do aggregate contribution limits exist in the first place?

Congress created the aggregate limit rule to prevent donors from circumventing the base limits by contributing to several groups, which would in turn give that money to a single candidate.

But the rules have changed since the Federal Election Campaign Act of 1971, when aggregate limits were introduced. Now, if one donor used a network of affiliated PACs to fund a single federal candidate, he or she would be breaking the law.

Related: Supreme Court opens door to flood of political cash — again

There’s more to this story. Click here to read the rest at the Center for Public Integrity.

This story is part of Consider the Source. Seeking to ‘out’ shadowy political organizations flourishing in the wake of the Supreme Court’s Citizens United ruling. Click here to read more stories in this investigation.

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Copyright 2014 The Center for Public Integrity. This story was published by The Center for Public Integrity, a nonprofit, nonpartisan investigative news organization in Washington, D.C.