CAMPAIGN FINANCE
ALERT
JANUARY 6, 2003
Individual “Hard Money” Contribution Limits
Nearly Doubled on January 1, 2003
COMPLEX ARRAY OF AGGREGATE LIMITS REPLACING
$25,000 ANNUAL LIMIT
When the midterm elections were over, the political fundraising landscape changed overnight. The press has
largely focused on the new “soft money” restrictions and
the pending court challenge to those restrictions and
several other aspects of the new Bipartisan Campaign
Reform Act of 2002. Less public attention has been given
to the fact that the limit on all types of individual “hard
money” contributions nearly doubled from $25,000 per
year to $95,000 per two-year election cycle on January 1st.
The bottom line: individual and PAC contributions are
much more in demand given the limitations on soft
money.
INDIVIDUALS MAY CONTRIBUTE $2,000 PER
ELECTION,UP TO $95,000 BI-ANNUALLY
The new $95,000 per two-year election cycle limit applies
to individual contributions to federal candidates, PACs,
and national, state and local political party committees.
Of this total, an individual may contribute $37,500 to
all federal candidates, and $57,500 in all other federal
contributions (e.g. to federal PACs, national parties, state
parties, local parties). The two-year election cycle starts
on January 1st of odd-numbered years and ends on
December 31st of even-numbered years.
Perhaps most notably, an individual (and his or her
spouse) may each contribute $2,000 per election (e.g.
primary, general, run-off) to a federal candidate, up to
$37,500 each to all federal candidates over a two-year
election cycle. This means that an individual may
contribute $1,000 more per election to a federal
candidate and $12,500 more over a two-year election
cycle to all federal candidates than under the old law.
And, of course, an individual may continue to contribute
$5,000 per PAC per year.
Note that foreign nationals are still prohibited from
making hard money and soft money contributions and
participating in any PAC’s decisions about contributions.
Moreover, effective January 1st, minors who are 17 years
or younger may not contribute hard money or soft money
to federal candidates or political parties.
ATTACHED DIAGRAM ILLUSTRATES NEW LIMITS
The diagram on the following page illustrates the complex
array of new aggregate limits replacing the old $25,000
annual limit on all individual hard money contributions
(which amounted to $25,000 per two-year election cycle
for contributions to federal candidates). The limits on
individual contributions to federal candidates and
national parties will be indexed for inflation every two
years, starting in 2005.
continued...
Individual “Hard Money” Contribution Limits Nearly Doubled on January 1, 2003
New Hard Money Limits on Individual Contributions
Effective January 1, 2003
$95,000 per 2-year election cycle
in Federal contributions
(e.g. Federal candidates and their campaign committees, corporate
and other PACs, national/state/local party committees)
6
6
$37,500 per 2-year election cycle
to all Federal candidates or their
campaign committees
$57,500 per 2-year election cycle
in all other Federal contributions
(e.g. corporate and other PACs, national party
committees, state and local party committees)
(e.g. Presidential, House, Senate)
6
$2,000 per election to
each U.S. Senate or
House candidate
6
6
Generally $2,000 per
election cycle to each
Presidential
campaign receiving
public matching
funds
6
$37,500 per
2-year election
cycle to all PACs
and state/local
party committees
6
$5,000 per
calendar year to
each corporate or
other PAC
$25,000 per calendar
year to each national
party committee
6
$10,000 per
calendar year to
each state or local
party committee
To Find Out More: If you have questions about this Alert, the new campaign finance law or on other political ethics matters, please
contact Tim Peckinpaugh (timp@prestongates.com) or David Thomas (davidth@prestongates.com) or by calling (202) 628-1700.
For a copy of our firm’s updated Guide to Political and Lobbying Activities, please contact our Marketing Department at (202) 628-1700.
We invite you to visit us online at www.pgerm.com for additional information about our firm.
DISCLAIMER
This ALERT provides general information about political ethics. It is not a legal opinion or legal advice. Readers should confer with appropriate
legal counsel on the application of law to their own situations. Entire contents copyright 2003 by Preston Gates Ellis & Rouvelas Meeds LLP.
Reproduction of this ALERT in whole or in part without written permission is prohibited.