Citizens United V. Federal Election Commission - Super PACs

Super PACs

Citizens United v. Federal Election Commission has often been credited for the creation of "super PACs", political action committees which make no contributions to candidates or parties and so can accept unlimited contributions from individuals, corporations, and unions. Certainly, the holding in Citizens United that, for purposes of establishing a "compelling government interest" of corruption sufficient to justify government limitations on political speech, "independent expenditures, including those made by corporations, do not give rise to corruption or the appearance of corruption", helped affirm the legal basis for super PACs However, it took another decision by the U.S. Court of Appeals for the District of Columbia Circuit, Speechnow.org v. Federal Election Commission, to actually authorize the creation of super PACs. While Citizens United held that corporations and unions could make independent expenditures, a separate provision of the Federal Election Campaign Act, at least as long interpreted by the Federal Election Commission, held that individuals could not contribute to a common fund without it becoming a PAC. PACs, in turn, were not allowed to accept corporate or union contributions of any size or to accept individual contributions in excess of $5000. In Speechnow.org, the D.C. Circuit, sitting en banc, held 9–0 that in light of Citizens United, such restrictions on the sources and size of contributions could not apply to an organization that made only independent expenditures in support of or opposition to a candidate, but not contributions to a candidate's campaign. The effectiveness of this system remains a hot topic in American politics. See Political Action Committee.

Citizens United and SpeechNOW left their imprint on the 2012 United States presidential election: "In any event, the implications of Citizens United were quickly apparent. In March, 2010, the D.C. Circuit ruled that individuals could make unlimited contributions to so-called Super PACs, which supported individual candidates. This opened the door for Presidential campaigns in 2012 that were essentially underwritten by single individuals. Sheldon Adelson, the gambling entrepreneur, gave about fifteen million dollars to support Newt Gingrich, and Foster Friess, a Wyoming financier, donated almost two million dollars to Rick Santorum’s Super PAC. Karl Rove organized Super PACs that spent over $300 million in support of Republicans during the 2012 elections.

In addition to indirectly providing support for the creation of super PACs, Citizens United allowed incorporated 501(c)(4) public advocacy groups (such as the National Rifle Association or Sierra Club, or the group Citizens United itself) and trade associations to make expenditures in political races. Such groups may not, under the tax code, have a primary purpose of engaging in electoral advocacy. These organizations must disclose their expenditures, but unlike super PACs they do not have to include the names of their donors in their FEC filings. A number of partisan organizations, such as Karl Rove's influential conservative Crossroads Grassroots Policy Strategies or the liberal 21st Century Colorado, have since registered as tax-exempt 501(c)(4) groups (defined as groups promoting "social welfare") and engaged in substantial political spending. This has led to claims of large secret donations, and questions about whether such groups should be required to disclose their donors. Historically, such non-profits have not been required to disclose their donors or names of members. See National Association for the Advancement of Colored People v. Alabama.