Federal Election Campaign Act Amendments of 1974

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The Federal Election Campaign Act Amendments of 1974 were created to curb corruption in elections, especially after the Watergate scandals showed how money could influence politics. The changes introduced limits on contributions, created the Federal Election Commission (FEC) to enforce the rules, and increased disclosure of campaign money.

Why they were needed
- Public concern about money in politics grew after Watergate and the 1972 elections.
- The original 1971 act didn’t have a strong enforcement mechanism, so the 1974 amendments added that power.

How they were developed
- The amendments began as a response to campaign abuses.
- They were introduced in the House on February 26, 1973 (H.R. 4708) and in the Senate on March 6, 1973 (S. 1094).
- They were passed by the Senate on April 11, 1974 and by the House on August 8, 1974.
- President Gerald Ford signed them into law on October 15, 1974.

Key provisions

Contributions and spending limits
- Individuals: up to $1,000 per candidate per election, and no more than $25,000 in total per year.
- PACs: up to $5,000 per candidate per election.
- Spending limits (for campaigns): $70,000 for a House election; for Senate, the greater of $100,000 or eight cents per voting-age resident for primaries and $150,000 or twelve cents per voter for general elections.
- Personal funds: Presidential candidates could use up to $50,000 of their own money; lower limits applied for Senate ($35,000) and House ($25,000) campaigns.

Federal Election Commission (FEC)
- Section 310 created the FEC and defined how it would operate, including auditing, investigating, issuing regulations, and imposing penalties for violations.

Campaign committees and reporting
- Section 202 requires candidates to designate a campaign committee and to report finances, ensuring clear disclosure of receipts and expenditures.

Other rules and funding
- Public funding: Section 403 allows a presidential candidate to receive public funds, up to $10 million for primary campaigns and up to $20 million for general elections.
- Political activity by officials: Section 401 limits certain political activities by state and local officials.
- Enforcement: Section 407 gives the FEC power to disqualify candidates or levy fines up to $25,000 for violations such as failing to report finances or exceeding spending limits.