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Public Affairs Council

New Lawsuit Challenges Limits on PACs That Make Contributions to Candidates


In a move watched closely by major political groups that support federal candidates, a political action committee is suing to force regulators to allow it to collect unlimited contributions for independent expenditures supporting these candidates.

The committee - the National Defense PAC - is relatively small, reporting receipts of less than $3,000 during the 2010 election cycle and contributions to a smattering of congressional candidates totaling less than $1,500.

But if a judge supports the National Defense PAC's arguments, the lawsuit could pave the way for major political organizations to increase the campaign money they raise and spend.

The group filed its lawsuit in federal district court in Washington, D.C., after the FEC deadlocked on whether to let the PAC raise unlimited contributions. Right now, FEC rules limit federal PACs to collecting no more than $5,000 per contributor, and they bar all corporate and union contributions. The deadlock reflected longstanding political differences on the commission, whose seats are divided equally among members appointed by Republicans and those appointed by Democrats.

Recent legal rulings, however, have undermined these regulations. For instance, the U.S. Supreme Court's Citizens United ruling in early 2010 loosened longstanding spending restrictions on corporations, associations and unions during federal elections.

National Defense PAC founder Carey said in a statement that he was "disappointed that the FEC couldn't find the votes to approve our request when our plan and situation are indistinguishable from those approved" by the U.S. Supreme Court and by lower courts.