Frustrated Democrats began laying plans Friday to chip away at a
landmark Supreme Court decision unleashing corporate expenditures in
political campaigns, but the ruling's broad sweep will make it
difficult to stem a tidal wave of new spending in this year's pivotal midterm elections.
Major corporations and advocacy groups immediately began devising ways
to take advantage of the 5 to 4 decision, which concluded that
corporations have the same First Amendment rights as individuals and,
therefore, can spend as much company money as they wish to oppose or
support individual political candidates.
The ruling, announced Thursday, opens a significant new channel of funding for major corporations and their lobbyists
in political campaigns. It is seen as particularly helpful for
Republicans because of their party's traditional bonds with industry
groups and its strong opposition to financial regulations proposed by
the Obama administration. Labor unions, which strongly support
Democrats, are also likely to take advantage of the ruling.
The decision further weakens the power of the major political
parties, which must adhere to campaign restrictions enforced by the Federal Election Commission.
Trade organizations such as the U.S. Chamber of Commerce and the
National Association of Manufacturers, by contrast, are now free to use
money from their members to pay for ads explicitly targeting lawmakers
who vote for legislation the groups do not like.
Rob Jordan, vice president for federal and state campaigns at the
conservative FreedomWorks, said his Washington-based group could reap
particular benefits from a portion of the ruling that threw out
restrictions on running political ads in the weeks leading up to an
election.
"We expect to have upside potential in the
multimillions, and we expect to be major players," Jordan said of his
group's plans for the midterms. "This will probably put ads on our
radar screen more than they would have been."
Democrats hurried Friday to lay out possible legislative responses
to the ruling, even while acknowledging that only a constitutional
amendment -- which is exceedingly unlikely -- could strike at the heart
of the decision. Most campaign finance experts agreed.
"There is not much that Congress can do," said Robert K. Kelner, a
Republican lawyer at Covington & Burling. "It's hard for me to see
any obvious route for campaign finance reformers to take aside from
tinkering around the edges."
Sen. Charles E. Schumer (N.Y.), the former Democratic Senatorial Campaign Committee head, and Rep. Chris Van Hollen
(Md.), the Democratic Congressional Campaign Committee chairman, are
working with the White House to craft a new campaign finance bill. They
are almost certain to call for strengthened disclosure requirements for
companies that directly sponsor ad campaigns, and they may push for
requiring shareholders to approve political expenditures by publicly
traded companies. They are also studying ways to prohibit campaign
spending by corporations such as American International Group or
General Motors that received federal bailout money, as well as
companies that have federal contracts or registered lobbyists.
Democrats are also eyeing restrictions on U.S. companies that are
subsidiaries of foreign-owned corporations; they believe the public
will be outraged by the possibility of foreign influence in U.S.
election campaigns. The high court's majority opinion avoided
addressing possible implications for foreign-owned firms, which are
barred from direct participation in U.S. elections but can use their
American subsidiaries to form political action committees.
The subsidiaries now appear free to spend as much as they wish on ads
targeting specific U.S. election candidates, and critics said the
opinion could be applied even more broadly ...
Opposing the ruling fits neatly into the Democrats' recent embrace of
populist themes, including efforts to crack down on corporate excesses.
"The voices of average Americans could be drowned out by Wall Street
banks, big oil, health insurance companies and other special
interests," House Speaker Nancy Pelosi (D-Calif.) said in a statement this week.
Rep. Dan Lungren
(Calif.), the ranking Republican on the House committee that oversees
federal elections, said his party has little to fear from such a
message. "Republicans are on the side of the First Amendment," he said ...
Executives could expose themselves to
shareholder lawsuits if they spend money in ways unrelated to their
core business. "I think corporations are going to be very careful in
using this," said Stanley Sporkin, a former federal judge and regulator
who now advises corporations.
Schumer and Sen. Russell Feingold (D-Wis.) eventually hope to persuade Sen. John McCain
(R-Ariz.), a past sponsor of campaign finance reform with Feingold, to
join the Democrats' effort. McCain issued a statement Thursday saying
he was "disappointed" by the ruling in Citizens United v. Federal Election Commission, but his office declined to comment Friday on whether he would seek legislative redress.
Opponents of the decision hope that a bipartisan consensus will materialize.
"It may just be that this decision is so outrageous that it will be the
catalyst to get the kinds of reforms we needed," said Mark McKinnon, a
former campaign adviser to President George W. Bush who supports new restrictions.
House Democratic Caucus Chairman John B. Larson
(Conn.) also has introduced a bill -- the Fair Elections Now Act --
that would set up a voluntary system in which congressional candidates
would abide by certain restrictions in exchange for public financing of
a portion of their campaigns. The measure has 126 House co-sponsors,
and Senate Majority Whip Richard J. Durbin (D-Ill.) has offered the same bill in his chamber.
Such a system would allow candidates to "run for office without any big
money from Wall Street PACs or lobbyists," said David Donnelly, an
official with the Public Campaign Action Fund.
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