Political action committee (PAC), an organization established by businesses, labor unions, and other interest groups in the United States to channel financial contributions into political campaigns. PACs solicit contributions, pool the funds, and make donations to the campaigns of candidates for national, state, and local offices.
Labor unions organized the first PACs in the 1940s as a way to circumvent federal laws prohibiting the use of union dues to support political candidates. Businesses first formed PACs in the 1950s.
However, these organizations remained in a legal limbo until the early 1970s, when changes in federal election law specifically authorized the creation of business and other kinds of PACs. Legislators believed these reforms in the rules governing campaign finance would limit the influence of money in political campaigns. However, these reforms led to the proliferation of PACs and to dramatic increases in campaign spending.
The terms of the 1971 Federal Election Campaign Act permit PACs to make larger contributions than individuals to any congressional candidate. While individuals may donate not more than $1,000 to a candidate, a PAC may donate up to $5000. Moreover, allied or related PACs may coordinate their contributions, greatly increasing the amount of money a congressional candidate receives from the same set of interests and individuals. As a result, PACs have become very important in congressional races. PACs are also active in state and local election contests. American presidential elections, by contrast, mainly depend upon public funding
More than 4000 PACs are registered with the Federal Election Commission, which oversees campaign finance. Despite concerns about the growing influence of PACs, their numbers have remained fairly constant since the mid-1980s. Most PAC money goes to incumbent candidates, who usually have a better chance to win than their challengers. . . .
. . . .Many critics assert that PACs corrupt the political process by allowing corporations and other interests to influence politicians with large contributions. Politicians generally agree about the need for reform in campaign finance contribution laws. However, the Democratic and Republican parties have been unable to agree on the direction this reform should take. The Republican Party has developed an efficient direct-mail fund-raising apparatus that can generate hundreds of millions of dollars in small individual contributions. Thus, the Republicans would be willing to place limits on PACs. The Democratic Party, by contrast, depends more heavily on PACs and fears that limiting their role would hurt the party's electoral chances.
Contributed by Benjamin Ginsberg, B.A., M.A., Ph.D.
"Political Action Committee (PAC)," Microsoft® Encarta® Online Encyclopedia 2000 http://encarta.msn.com © 1997-2000 Microsoft Corporation. All rights reserved.
Imagine that you are a legislator and a well-known PAC has offered you its support. What would you want to know before deciding whether or not to accept this offer?
Imagine that you decide to accept the support of this PAC. What is one advantage of accepting PAC support? One disadvantage?

As you read the article highlight the answers to the following questions:
 What is a Political Action Committee (PAC)?
 What do PACs do?
 Why were PACs originally created?
 How have PACs changed throughout time?
Paragraph 1
A political action committee (PAC) is an organization established by businesses, labor unions, and other interest groups in the United States to channel financial contributions into political campaigns. PAC’s solicit contributions, pool the funds, and make donations to the campaigns for national, state, and local offices.
Which of the following best describes the use of the word channel in paragraph 1? a.
Waterway b.
Avenue c.
To direct d.
To divert
In the paragraph the term pool the funds means… a.
To spend money freely b.
To gather money into a common pile c.
To fund political campaigns
Paragraph 2
Labor unions organized the first PACs in the 1940’s as a way to circumvent (get around) federal laws prohibiting the use of union dues to support political candidates. In the early
1970’s changes in federal election law authorized the creation of business and other kinds of
PACs. Legislators believed that allowing PACs would limit the influence of money in political campaigns. However, these reforms led to the proliferation of PACs and to dramatic increases in campaign spending.
Which of the following best defines the term proliferation in paragraph 2? a.
limited growth b.
decreased growth c.
rapid growth d.
rapid decline
Paragraph 3
Since 1971, PAC’s have been allowed to make larger contributions than individuals to any congressional candidates. While individuals may not donate more than $1,000 to a candidate, a PAC may donate up to $5,000. Related PACs may coordinate their contributions greatly increasing the amount of money a congressional candidate receives from the same special interest. As a result, PACs have become very important in congressional races. PACs are also active in state and local election contests.

Which of the following statements best explains why the power of PACs has grown throughout time? a.
PACs cannot donate more to a campaign than an individual. b.
PACs are limited to donations of $5,000 per legislative session. c.
PACs are not able to influence presidential elections. d.
PACs are able to work with other groups to increase political contributions.
Paragraph 4
More than 4,000 PACs are registered with the Federal Election Committee, which oversees campaign finance. Despite concerns about the growing influence of PACs, their numbers have remained steady since the mid-1980s. Most PAC money goes to incumbent candidates, who usually have a better chance to win than their challengers.
Which of the following is true about PACs since the 1980’s? a.
The number has remained steady. b.
The number has grown rapidly. c.
The number has declined. d.
The number has fluctuated (gone up and down).
An incumbent candidate is one who… a.
Is running for a first political office. b.
Is challenging a veteran for a political office. c.
Is accepting a nomination for political office. d.
Is running for re-election.
Paragraph 5
Many critics assert that PACs corrupt the political process by allowing corporations and other interests to influence politicians with large contributions. Politicians generally agree about the need for reform in campaign finance contribution laws. Both political parties have been unable to decide on the form that these reforms should take. The Republican
Party has developed an efficient direct-mail fundraising apparatus that can generate hundreds of millions of dollars in small individual contributions. Thus, the Republicans are willing to place limits on PACs. The Democratic Party depends more heavily on PACs and fears that limiting their role would hurt the party’s electoral chances.
Which of the following terms is the best definition for the use of corrupt in the first sentence? a.
affect or harm b.
correct c.
redirect d.
lessen or shrink
Which of the following statements would best describe why the Republicans would be more supportive of election reforms involving PACs? a.
The Republicans use private funds to support their candidates for office. b.
The Republicans have developed other strategies to raise money to fund candidates. c.
PAC money does not support Republican candidates. d.
More PACs are supported by Republican special interests.

Using evidence from the reading answer the following questions on PACs:
1.
Do PACs serve the same purpose today as when they were first organized? Why or why not?
2.
In your opinion, how effective are PACs in influencing the outcome of elections?
Why?
3.
Should there be more restrictions on PACs? How will this affect the ability of citizens and groups to influence legislation?
Extension Activity. Brief Constructed Response Question. Answer in a paragraph.
Imagine that you are a legislator and a well-known PAC has offered you its support.
 What are two questions you would ask before accepting support from a PAC?
 What is an advantage of accepting support from a PAC?
 What is a disadvantage?