In response to a Supreme Court ruling that loosens spending restrictions on corporations, associations and unions in federal elections, congressional Democrats are preparing legislation that Republicans say would blunt the impact of the court's decision.

Sen. Charles E. Schumer, D-N.Y., and Rep. Chris Van Hollen, D-Md., plan to introduce their plan the week of Feb. 22 and to get it passed by both houses before November's midterm elections, which would be the first major test of the Jan. 21 ruling.

The legislation would ban expenditures by foreign-controlled corporations, bar direct expenditures by corporations that have received funds through the Troubled Asset Relief Program until the funds are repaid, and bar election-related spending by federal contractors.

While current law already forbids expenditures by foreign corporations, Van Hollen said the plan would apply to entities incorporated in the United States that are: 20 percent or more foreign-owned; have a majority of board members who are foreign principals; or have a decision-making process on political activity primarily run by foreign interests.

The plan would also create new rules for disclosing election-related spending to the government and shareholders. For instance, corporations, unions and other entities such as "527" organizations would have to register accounts designated for political broadcast ads with the Federal Election Commission.

"If you're going to put these ads on TV, there's going to be a separate track for the money," Schumer said, adding that Democrats will also write disclosure regulations in a manner that will prevent corporations from anonymously funneling money to other entities, such as the U.S. Chamber of Commerce. "These requirements won't ban political activity, but the level of transparency will, at the very least, make corporations realize everything they do in the nature of political advocacy will be public. That will make them think twice before spending unlimited sums to influence elections."

In a 5-4 decision in the closely watched case of Citizens United v. Federal Election Commission, the high court ruled that corporations may use money from their general treasuries to pay for campaign ads. The high court also struck down parts of the Bipartisan Campaign Reform Act, which prohibited unions and corporations from running issue ads in the closing days before primary and general elections.

Many Democrats fear the loosened restrictions will largely benefit the Republican Party and its candidates. Republicans tend to support the ruling and have indicated they will fight any legislation designed to blunt its impact.

Other proposals expected to be in the legislation include:

Requiring corporations to disclose campaign spending within 24 hours on corporate websites, to shareholders on a quarterly basis and to the Securities and Exchange Commission.

Requiring CEOs to appear in broadcast ads funded by their corporations and attest to them in the same manner that candidates must endorse their own ads under existing federal election law.

Allowing candidates and their political parties to respond to corporate-funded broadcast ads by purchasing air time at the so-called "lowest unit rate."

New prohibitions on coordinating campaign-related spending with candidates

New disclosure requirements for campaign expenditures by registered lobbyists.