R 42042
R 42042
R 42042
Summary
Super PACs emerged after the U.S. Supreme Court permitted unlimited corporate and union
spending on elections in January 2010 (Citizens United v. Federal Election Commission).
Although not directly addressed in that case, related, subsequent litigation (SpeechNow v. Federal
Election Commission) and Federal Election Commission (FEC) activity gave rise to a new form
of political committee. These entities, known as super PACs or independent-expenditure-only
committees (IEOCs), have been permitted to accept unlimited contributions and make unlimited
expenditures aimed at electing or defeating federal candidates. Super PACs may not contribute
funds directly to federal candidates or parties.
This report explores what super PACs are, how they developed, and what they raised and spent in
the 2010 and 2012 election cycles. As of this writing, Congress has not amended the Federal
Election Campaign Act (FECA) to recognize formally the role of super PACs. No legislation
introduced thus far in the 113th Congress focuses specifically on super PACs, but some bills
contain relevant provisions. H.R. 270 (Price, N.C.) would bar super PAC fundraising by federal
candidates and officeholders. The latest version of the DISCLOSE Act, H.R. 148 (Van Hollen),
proposes new disclaimer requirements that would apply to ads funded by super PACs and other
entities. At the agency level, the FEC has issued advisory opinions, but has not yet approved
regulations governing super PACs.
Despite limited policy action on super PACs, these new entities are quickly occupying a major
place in federal elections. In just 10 months of operation in 2010, almost 80 super PACs emerged,
spending a total of approximately $90 millionmore than $60 million of which went to elect or
defeat federal candidates through independent expenditures. Super PAC activity increased sharply
in 2012; more than 400 active super PACs spent more than $600 million directly supporting or
opposing candidates. Various issues related to super PACs may be relevant as Congress considers
how or whether to pursue legislation or oversight on the topic. These include relationships with
other political committees and organizations, transparency, and independence from campaigns.
For those advocating their use, super PACs represent freedom for individuals, corporations, and
unions to contribute as much as they wish for independent expenditures that advocate election or
defeat of federal candidates. Opponents of super PACs contend that they represent a threat to the
spirit of modern limits on campaign contributions designed to minimize potential corruption.
This report will be updated periodically to reflect major developments.
Contents
Introduction and Highlights of Key Findings .................................................................................. 1
Organization and Scope of the Report ............................................................................................. 2
What Are Super PACs? .................................................................................................................... 3
Why Might Super PACs Matter to Congress? ................................................................................. 7
How Have Super PACs Been Regulated? ........................................................................................ 7
What Information Must Super PACs Disclose? ............................................................................. 11
Overall, What Did Super PACs Raise and Spend in the 2010 and 2012 Federal Elections? ......... 13
What Did Super PACs Spend Supporting or Opposing Federal Candidates in 2010 and
2012? .......................................................................................................................................... 15
What Major Super PAC Issues Might Be on the Horizon?............................................................ 19
Conclusion ..................................................................................................................................... 25
Figures
Figure 1. Top 10 Super PACs by Total Receipts and Disbursements, 2010 and 2012 ................... 14
Figure 2. Support and Opposition for Federal Candidates in 2010 and 2012
Super PAC Independent Expenditures ........................................................................................ 17
Figure 3. The 25 Congressional Races in 2010 and 2012 in Which Super PACs
Spent the Most on Independent Expenditures ............................................................................ 19
Figure 4. Sample Disclosure for Corporations and Unions Using Direct Spending versus
Contributions to Other Entities ................................................................................................... 22
Tables
Table 1. Basic Structure of Super PACs versus Other Political Committees and
Organizations ................................................................................................................................ 4
Table 2. The 10 Super PACs Reporting the Most Receipts and Disbursements for the
2012 Election Cycle.................................................................................................................... 15
Table 3. Overview of 2012 Super PAC Independent Expenditures by Type of Race and
Party ............................................................................................................................................ 16
Appendixes
Appendix. Methodological Notes .................................................................................................. 26
Contacts
Author Contact Information........................................................................................................... 27
Super PACs potentially have major policy and electoral consequences. A variety
of issues related to the state of law and regulation affecting super PACs,
disclosure, agency administration, and other topics might be relevant as Congress
considers whether to pursue oversight or legislation.
Additional regulation of super PACs might be attractive to those who believe that
these organizations are thinly veiled extensions of individual campaigns. Those
who believe super PACs are independent speakers might counter that super
PACs spending is not coordinated with campaigns and, therefore, should be
subject to fewer disclosure requirements or other obligations than entities that
can contribute to candidates.
Most super PACs are financially modest, but a few raise and spend substantial
sums. Ten super PACs accounted for almost 75% of all super PAC spending in
2010. A similar, but less dramatic, distinction emerged during the 2012 cycle,
when 10 super PACs accounted for approximately 65% of total spending.
For the 2012 cycle, super PACs raised a total of $826.6 million and spent a total
of $799.2 million.
Super PAC IEs in 2012 House and Senate races were more likely to favor
Democrats than in 2010. Most super PAC IEs at the presidential level favored
Republicans.
Large contributions are permissible but, for some, raise concerns because of the
way in which they are disclosed, because they would be impermissible if given
directly to candidate campaigns, or both. The original source of super PAC
contributions need not necessarily be reported to the FEC if the contributions are
routed through entities such as some 501(c) organizations.
The Discussion following the brief answers expands on the analysis. These
sections include bullet points designed to help the reader navigate the text.
Tables and figures throughout the report summarize selected fundraising and
spending data discussed in the text.
Before proceeding, readers should be aware of this reports scope and purpose. This report is
intended to provide an overview of the developing role of super PACs in American elections, with
an emphasis on summaries of available spending data and major policy issues that may face
Congress.1 The report discusses selected litigation to demonstrate how those events have changed
the campaign finance landscape and affected the policy issues that may confront Congress; it is
not, however, a constitutional or legal analysis.
The report is also not intended to be a political analysis of strategic advantages or disadvantages
surrounding the choice to form a super PAC, or of super PACs effects on individual candidates.
Fully addressing how super PACs affected individual races and candidates would require political
analysis beyond the scope of this report. Nonetheless, understanding aggregate spending patterns
in individual races (as opposed to campaigns) may assist Congress in its consideration of
potential legislative, regulatory, or oversight responses.
Given the rapid development and frequently changing nature of super PACs, the report is not
intended to address every organization or policy issue that may be relevant. It reflects current
understanding of super PACs based on the analysis described throughout the report. Importantly,
however, because federal election law and regulation have not been amended to address the role
of super PACs, the findings presented here may be subject to alternative interpretations or future
developments. Campaign finance data discussed in the report were collected and analyzed as
noted in the text and discussed in the Appendix.
Finally, a note on terminology may be useful. The term independent expenditures (IEs) appears
throughout the report. IEs refer to purchases, often for political advertising, that explicitly call for
election or defeat of a clearly identified federal candidate (e.g., vote for Smith, vote against
Jones). Campaign finance lexicon typically refers to making IEs, which is synonymous with the
act of spending funds for the purchase calling for election or defeat of a federal candidate. Parties,
PACs, individuals, and now, super PACs, may make IEs. IEs are not considered campaign
contributions and cannot be coordinated with the referenced candidate.2
For a discussion of current campaign finance issues generally, see CRS Report R41542, The State of Campaign
Finance Policy: Recent Developments and Issues for Congress, by R. Sam Garrett.
2
On the definition of IEs, see 2 U.S.C. 431(17).
130 S. Ct. 876 (2010); and 599 F.3d 686 (D.C. Cir. 2010) respectively.
The discussion here is not intended to be exhaustive. For additional information, see, for example, 11 C.F.R. 109.20
and 11 C.F.R. 109.21.
5
As the term is commonly used, 527 refers to groups registered with the Internal Revenue Service (IRS) as Section 527
political organizations that seemingly intend to influence federal elections in ways that may place them outside the
FECA definition of a political committee. By contrast, political committees (which include candidate committees, party
committees, and political action committees) are regulated by the FEC and federal election law. There is a debate
regarding which 527s are required to register with the FEC as political committees. For additional discussion, see CRS
Report RS22895, 527 Groups and Campaign Activity: Analysis Under Campaign Finance and Tax Laws, by L. Paige
Whitaker and Erika K. Lunder. All political committees, including super PACs, are Section 527 political organizations
for tax purposes.
4
Table 1. Basic Structure of Super PACs versus Other Political Committees and Organizations
(Refers to federal elections only)
Is the entity
typically
considered a
political
committee by
the FEC?
Must certain
contributors be
disclosed to the FEC?
Can federal
candidates raise
funds the entity
plans to
contribute in
federal elections?
Super PACs
Yes
Yes
No
No
Traditional PACsa
Yes
Yes
Yes
National Party
Committees
Yes
Yes
Yes
Candidate
Committees
Yes
Yes
Yes
527sc
No
No
N/A
No
501(c)(4)s, (5)s,
(6)se
No
No
N/A
No
Source: CRS adaptation from Table 1 in CRS Report R41542, The State of Campaign Finance Policy: Recent Developments and Issues for Congress, by R. Sam Garrett; and
Federal Election Commission, Contribution Limits 2013-2014, http://www.fec.gov/ans/answers_general.shtml.
Notes: The table does not include the following notes regarding additional limitations on contributions: (1) For individuals, a special biennial limit of $123,200 ($48,600 to
all candidate committees and $74,600 to party and PAC committees) also applies. These amounts are adjusted biennially for inflation; (2) The national party committee and
the national party Senate committee (e.g., the DNC and DSCC or RNC and NRSC) share a combined per-campaign limit of $45,400, which is adjusted biennially for
inflation.
a.
CRS-4
This report uses the term traditional PACs to refer to PACs that are not super PACs. Here, the term includes separate segregated funds, nonconnected committees,
and leadership PACs. The table assumes these PACs would be multicandidate committees. Multicandidate committees are those that have been registered with the FEC
(or, for Senate committees, the Secretary of the Senate) for at least six months; have received federal contributions from more than 50 people; and (except for state
parties) have made contributions to at least five federal candidates. See 11 C.F.R. 100.5(e)(3). In practice, most PACs attain multicandidate status automatically over
time.
b.
As noted later in this report, nonconnected PACs utilizing an exemption per the Carey case may raise unlimited amounts for independent expenditures if those
amounts are kept in a separate bank account and not used for contributions.
c.
As the term is commonly used, 527 refers to groups registered with the Internal Revenue Service (IRS) as Section 527 political organizations that seemingly intend to
influence federal elections in ways that place them outside the FECA definition of a political committee. By contrast, political committees (which include candidate
committees, party committees, and political action committees) are regulated by the FEC and federal election law. There is a debate regarding which 527s are required
to register with the FEC as political committees. FEC contributor disclosure for these organizations applies only to those who designate their contributions for use in
independent expenditures or electioneering communications. This table does not address general reporting obligations established in tax law or IRS regulations. For
additional discussion, see CRS Report RS22895, 527 Groups and Campaign Activity: Analysis Under Campaign Finance and Tax Laws, by L. Paige Whitaker and Erika K.
Lunder.
d.
Federal tax law requires that 527s periodically disclose to the IRS information about donors who have given at least $200 during the year. See 26 U.S.C. 527(j). This
information is publicly available. See 26 U.S.C. 6104.
e.
For additional discussion of these groups, see CRS Report RL33377, Tax-Exempt Organizations: Political Activity Restrictions and Disclosure Requirements, by Erika K.
Lunder; and CRS Report R40183, 501(c)(4) Organizations and Campaign Activity: Analysis Under Tax and Campaign Finance Laws, by Erika K. Lunder and L. Paige Whitaker.
f.
Federal tax law requires that these groups disclose information to the IRS about donors who have given at least $5,000 annually. See 26 U.S.C. 6033. Unlike
information on donors to political committees and 527s, however, this information is confidential and not made public. See 26 U.S.C. 6104.
CRS-5
Discussion
Super PACs originated from a combination of legal and regulatory developments. Most notably,
in January 2010, the Supreme Court issued a decision in Citizens United v. Federal Election
Commission.6 Citizens United did not directly address the topic of super PACs, but it set the stage
for a later ruling that affected their development, as discussed below.
130 S. Ct. 876 (2010). For additional discussion, see CRS Report R41045, The Constitutionality of Regulating
Corporate Expenditures: A Brief Analysis of the Supreme Court Ruling in Citizens United v. FEC, by L. Paige
Whitaker.
7
599 F.3d 686 (D.C. Cir. 2010).
8
Federal election law and FEC regulations have not been amended to clarify the role of super PACs. SpeechNow and
related FEC advisory opinions have held that super PACs cannot make contributions to candidates or parties.
9
This is particularly true, some argue, for super PACs that are believed to be organized primarily for supporting or
opposing particular campaigns rather than several campaigns. See, for example, Fred Wertheimer, Democracy Loses
With Super PACs, Politico, September 28, 2011, p. 27.
other outside spenders, such as organizations regulated primarily under Sections 527 and
501(c) of the Internal Revenue Code (IRC).
Discussion
Several policy issues and questions surrounding super PACs may be relevant as Congress
considers how or whether to pursue legislation or oversight. These topics appear to fall into three
broad categories:
For those advocating their use, super PACs represent newfound (or restored) freedom for
individuals, corporations, and unions to contribute as much as they wish for independent
expenditures that advocate election or defeat of federal candidates. Opponents of super PACs
contend that they represent a threat to the spirit of modern limits on campaign contributions
designed to minimize potential corruption.
Additional discussion of these subjects appears throughout this report.
Discussion
The FEC is responsible for administering civil enforcement of FECA and related federal election
law. The commission began considering a notice of proposed rulemaking (NPRM) expected to
address various Citizens United issues shortly after the Supreme Courts January 2010 decision.10
After disagreement throughout 2011 and two previous deadlocked11 votes, in December 2011,
commissioners approved a notice of proposed rulemaking (NPRM) posing questions about some
aspects of what form post-Citizens United rules should take.12 Among other points, the agency
essentially asks how broadly new rules should define permissible corporate and union
independent expenditures and electioneering communications. It is unclear to what extent final
rules, if adopted, will address super PACs.
Despite the lack of amendments to federal law or campaign finance regulation, the FEC has
issued advisory opinions (AOs) that provided guidance on some super PAC questions.13 These
AOs responded to questions posed by members of the regulated community, as those governed by
campaign finance law are sometimes known, seeking clarification about how the commission
believed campaign finance regulation and law applied to specific situations applicable to super
PACs. Six AOs are particularly relevant for understanding how the FEC has interpreted the
Citizens United and SpeechNow decisions with respect to super PACs, as briefly summarized
below.
In July 2010, the FEC approved two related AOs in response to questions from
the Club for Growth (AO 2010-09) and Commonsense Ten (AO 2010-11).14 In
light of Citizens United and SpeechNow, both organizations sought to form PACs
that could solicit unlimited contributions to make independent expenditures (i.e.,
form super PACs). The commission determined that the organizations could do
so. In both AOs, the commission advised that while post-Citizens United rules
were being drafted, political committees intending to operate as super PACs
could supplement their statements of organization (FEC form 1) with letters
indicating their status.15 The major policy consequence of the Club for Growth
and Commonsense Ten AOs was to permit, based on Citizens United and
SpeechNow, super PACs to raise unlimited contributions supporting independent
expenditures.16
10
See, for example, Federal Election Commission, FEC Statement on the Supreme Courts Decision in Citizens
United v. FEC, press release, February 5, 2010, http://www.fec.gov/press/press2010/20100205CitizensUnited.shtml.
11
The commission deadlocked in two 3-3 votes on draft NPRM documents 11-02, draft A, and 11-02-A, at the January
20, 2011, meeting. See Federal Election Commission, January 20, 2011, meeting minutes, pp. 4-5, http://www.fec.gov/
agenda/2011/approved2011_06.pdf. A vote to approve draft NPRM document 11-33 failed on a 2-4 vote at the June 15,
2011, commission meeting. At the same meeting, alternative draft NPRM document 11-33-A resulted in a deadlocked
3-3 vote. See Federal Election Commission, June 15, 2011, meeting minutes, pp. 3-4, http://www.fec.gov/agenda/2011/
approved2011_39.pdf. FECA requires that at least four commissioners vote affirmatively to approve NPRMs and final
rules. For additional discussion, see CRS Report RS22780, The Federal Election Commission (FEC) With Fewer than
Four Members: Overview of Policy Implications, by R. Sam Garrett.
12
Federal Election Commission, Independent Expenditures and Electioneering Communications by Corporations and
Labor Organizations, 248 Federal Register 80803, December 27, 2011.
13
AOs provide an opportunity to pose questions about how the commission interprets the applicability of FECA or
FEC regulations to a specific situation (e.g., a planned campaign expenditure). AOs apply only to the requester and
within specific circumstances, but can provide general guidance for those in similar situations. See 2 U.S.C. 437f.
14
The AOs are available from the FEC website at http://saos.nictusa.com/saos/searchao.
15
For sample letters, see Appendix A in AOs 2010-09 and 2010-11. A template is available at http://www.fec.gov/pdf/
forms/ie_only_letter.pdf.
16
AOs do not have the force of regulation or law. Although AOs can provide guidance on similar circumstances in
other settings, some may argue that AOs cannot, in and of themselves, create broad guidance about super PACs or
other topics.
On December 1, 2011, the FEC considered a request from super PAC American
Crossroads. In AO 2011-23, Crossroads sought permission to air broadcast ads
featuring candidates discussing policy issues. American Crossroads volunteered
that the planned ads would be fully coordinated with federal candidates ahead
of the 2012 elections, but also noted that they would not contain express
17
Majority PAC was formerly known as Commonsense Ten, the super PAC discussed above.
On limitations on contributions to PACs, see Table 1 in CRS Report R41542, The State of Campaign Finance
Policy: Recent Developments and Issues for Congress, by R. Sam Garrett. This section assumes a super PAC would
achieve multicandidate committee status. Multicandidate committees are those that have been registered with the FEC
(or, for Senate committees, the Secretary of the Senate) for at least six months; have received federal contributions
from more than 50 people; and (except for state parties) have made contributions to at least five federal candidates. See
11 C.F.R. 100.5(e)(3). In practice, most PACs attain multicandidate status automatically over time.
19
Colberts super PAC is popularly known as the Colbert Super PAC. It is registered with the FEC as Americans for a
Better Tomorrow, Tomorrow. For a scholarly discussion, see R. Sam Garrett, Seriously Funny: Understanding
Campaign Finance Policy Through the Colbert Super PAC, Saint Louis University Law Journal, vol. 56, no. 3 (Spring
2012), pp. 711-723.
20
On the press exemption, see 2 U.S.C. 431(9)(B)(i); 11 C.F.R. 100.73; 11 C.F.R. 100.132; and discussion in AO
2011-11, pp. 6-8.
21
See AO 2011-11, pp. 7-9. AOs are available from the FEC website at http://saos.nictusa.com/saos/searchao.
22
Ibid., p. 9.
18
advocacy calling for election or defeat of the candidates.23 In brief, the key
question in the AO was whether Crossroads could fund and air such
advertisements without running afoul of coordination restrictions designed to
ensure that goods or services of financial value are not provided to campaigns in
excess of federal contribution limits.24 (As a super PAC, Crossroads is prohibited
from making campaign contributions; coordinated expenditures would be
considered in-kind contributions.) Ultimately, the FEC was unable to reach a
resolution to the AO request. In brief, at the open meeting at which the AO was
considered, independent commissioner Stephen Walter and Democrats Cynthia
Bauerly and Ellen Weintraub disagreed with their Republican counterparts,
Caroline Hunter, Donald McGahn, and Matthew Petersen, about how FEC
regulations and FECA should apply to the request.25 As a result of the 3-3
deadlocked vote, the question of super PAC sponsorship of issue ads featuring
candidates appears to be unsettled. Although deadlocked votes are often
interpreted as not granting permission for a planned campaign activity, some
might also regard the deadlock as a failure to prohibit the activity. As a practical
matter, if the FEC is unable to reach agreement on approving or prohibiting the
conduct, it might also be unable to reach agreement on an enforcement action
against a super PAC that pursued the kind of advertising Crossroads proposed.
Also at its December 1, 2011, meeting, the FEC considered AO request 2011-21,
submitted by the Constitutional Conservatives Fund PAC (CCF). CCF is a
leadership PAC26 affiliated with Senator Mike Lee. CCF and other leadership
PACs are not super PACs, although the CCF AO request is arguably relevant for
super PACs. Specifically, in AO request 2011-21, CCF sought permission to raise
unlimited funds for use in independent expenditures, as super PACs do. The FEC
held, in a 6-0 vote, that because CCF is affiliated with a federal candidate, the
PAC could not solicit unlimited contributions. To the extent that the CCF request
is relevant for super PACs, it suggests that leadership PACs or other committees
affiliated with federal candidates may not behave as super PACs.
To summarize, although the FEC has not yet issued rules regulating super PACs, AOs have
provided guidance relevant for some circumstances. Perhaps most notably, through the Club for
Growth (2010-09) and Commonsense Ten (2010-11) AOs, the commission confirmed that super
23
See AO request (AOR) 2011-23, p. 5. The AOR was filed, as is typical, in a letter from the requesters counsel to the
FEC General Counsel. See Letter from Thomas Josefiak and Michael Bayes to Anthony Herman, General Counsel,
FEC, October 28, 2011, in the AO 2011-23 documents at http://saos.nictusa.com/saos/searchao.
24
Coordination is discussed later in this report. On coordination and the three-part regulatory test for coordination, see,
respectively 2 U.S.C. 441a(a)(7)(B) and 11 C.F.R. 109.21.
25
Commissioners Bauerly and Weintraub issued a statement of reasons document explaining their rationale, as did
Commissioner Walther and the three Republican commissioners. See Cynthia L. Bauerly and Ellen L. Weintraub,
Statement on Advisory Opinion Request 2011-23 (American Crossroads), Federal Election Commission, Washington,
DC, December 1, 2011; Steven T. Walther, Advisory Opinion Request 2011-23 (American Crossroads): Statement of
Commissioner Steven T. Walther, Federal Election Commission, Washington, DC, December 1, 2011; and Caroline C.
Hunter, Donald T. McGahn, and Matthew S. Petersen, Advisory Opinion Request 2011-23 (American Crossroads):
Statement of Vice Chair Caroline C. Hunter and Commissioners Donald T. McGahn and Matthew S. Petersen, Federal
Election Commission, Washington, DC, December 1, 2011.
26
Leadership PACs are PACs affiliated with Members of Congress that provide an additional funding mechanism to
support colleagues campaigns. Although historically the purview of members of the House and Senate leadership,
many Members of Congress now have leadership PACs. Leadership PACs are separate from the candidates principal
campaign committee.
10
PACs could accept unlimited contributions and use those funds to make independent
expenditures. In AO 2011-12 (Majority PAC and House Majority PAC), the commission granted
permission for federal officeholders and party officials to solicit super PAC funds within the
limits established in FECA. The Colbert AO (2011-11) applies to the relatively unique situation of
a media personality discussing his super PAC on his television program. The Colbert AO may,
nonetheless, have broad implications in the future by presenting a model for other media
personalities and organizations to voice their support or opposition for political candidates, for
media corporations to have greater latitude to support personalities who do so, or both. The FEC
was unable to reach a consensus on American Crossroads request (AO 2011-23) to air issue
ads featuring candidates. Finally, in AO 2011-21, the commission determined that leadership
PACs could not engage in unlimited fundraising for independent expenditures, as super PACs do.
Discussion
In the Commonsense Ten AO, the FEC advised super PACs to meet the same reporting
obligations as PACs known as nonconnected committees (e.g., independent organizations that are
not affiliated with a corporation or labor union). These reports are filed with the FEC28 and made
available for public inspection in person or on the commissions website.
Super PACs and other political committees must regularly29 file reports with the FEC30
summarizing, among other things,
the name, address, occupation, and employer31 of those who contribute more than
$200 in unique or aggregate contributions per year;
27
This is FEC form 1. Essentially, it provides the FEC with information about how to contact the campaign and
identifies the treasurer.
28
Political committees devoted solely to Senate activities file reports with the Secretary of the Senate, who transmits
them to the FEC for public positing. In theory, if a super PAC were devoted solely to affecting Senate campaigns, it is
possible the super PAC would file with the Secretary rather than with the FEC. Nonetheless, the information would be
transmitted to the FEC.
29
Reporting typically occurs quarterly. Pre- and post-election reports must also be filed. Non-candidate committees
may also file monthly reports. See, for example, 2 U.S.C. 434 and the FECs Campaign Guide series for additional
discussion of reporting requirements.
30
As noted previously, unlike other political committees, Senate political committees (e.g., a Senators principal
campaign committee) file reports with the Secretary of the Senate, who transmits them to the FEC. See 2 U.S.C.
432(g).
31
The occupation and employer requirements apply to contributions from individuals.
11
the name and address of the recipient of disbursements exceeding $200;32 and
Reporting timetables for traditional PACs, which appear to apply to super PACs, depend on
whether the PACs activity occurs during an election year or non-election year.
During election years, PACs may choose between filing monthly or quarterly
reports. They also file pre- and post-general election reports and year-end
reports.34
Super PACs also have to report their IEs.36 IEs are reported separately from the regular financial
reports discussed above. Among other requirements,
The name, address, occupation, and employer for those who contributed at least $200 to the super
PAC for IEs would be included in the regular financial reports discussed above, but donor
information is not contained in the IE reports themselves. In addition, as the Is Super PAC
Activity Sufficiently Transparent? section discusses later in this report, the original source of
some contributions to super PACs can be concealed (either intentionally or coincidentally) by
routing the funds through an intermediary.
32
FECA contains some exceptions. For example, all disbursements used to make contributions to another political
committee must be itemized, regardless of amount. See 2 U.S.C. 434(b)(4).
33
FEC policy guidance has stated that when considered along with the identity of the disbursement recipient, must be
sufficiently specific to make the purpose of the disbursement clear. In general, however, political committees have
broad leeway in describing the purpose of disbursements. For example, the commission has noted that generic terms
such as administrative expenses are inadequate, but salary is sufficient. The quoted material and additional
discussion appears in Federal Election Commission, Statement of Policy: Purpose of Disbursement, 72 Federal
Register 887-889, January 9, 2007.
34
Quarterly reports are due to the FEC on April 15, July 15, and October 15. The final quarterly report is due January
31 of the next year. Monthly reports are due to the commission 20 days after the end of the previous month. The yearend report is due by January 31 of the year after the election. Pre-election reports summarizing activity for the final
weeks of an election period must be filed with the FEC 12 days before the election. Monthly or quarterly reports are not
required if their due dates fall near an otherwise required pre-election report. Post-general reports must be filed 30 days
after the election; post-primary reports are not required. Additional requirements apply to special elections. See 11
C.F.R. 104.5(c)(1).
35
The reports are due to the FEC by July 31 and January 31 respectively. See 11 C.F.R. 104.5(c)(2).
36
Separate reporting obligations apply to electioneering communications.
37
See, for example, 2 U.S.C. 434(g).
38
2 U.S.C. 434(g)(3)(B).
12
Discussion
To assess where and how super PACs became involved in federal elections, CRS
analyzed super PAC reports filed with the FEC for the 2010 and 2012 cycles. The Appendix
provides additional information about the methodology used to gather the data and conduct the
analysis.
During the 2010 election cycle, 79 groups registered as super PACs spent a total of approximately
$90.4 million. This sum is perhaps notable not only for its size, but also because most of these
organizations did not operate until the summer of 2010.43 As Figure 1 shows, super PAC
resources in 2010 were highly skewed, meaning that a relatively small number of groups
accounted for a large amount of financial activityboth individually and as a proportion of all
super PAC activity.
39
Remaining amounts were apparently spent on items such as administrative expenses and non-federal races. IE totals
range from approximately $61 million to approximately $65 million depending on whether one analyzes summary data
provided by the FEC or sums individual IE filings. As discussed elsewhere in this report, various data sources and
different filing schedules often yield slightly different numbers.
40
The FEC provided CRS with data on spending by individual committees. The text in this section is based on CRS
analysis of those data, including aggregating the totals and calculating percentages listed in the text.
41
The FEC subsequently administratively terminated some super PACs that had no financial activity.
42
The 2012 findings are based on CRS analysis of total receipts and disbursements by super PACs as reported in the
FEC Committee Summary File.
43
The FEC provided CRS with data on spending by individual committees. CRS aggregated the totals listed in the text.
In the absence of additional regulations concerning registration for super PACs, it is not clear that all organizations are
reflected in the figures in the text.
13
Figure 1.Top 10 Super PACs by Total Receipts and Disbursements, 2010 and 2012
Source: CRS figure and analysis of super PAC data in the FEC Committee Summary File.
Notes: Amounts in the figure refer to total receipts and disbursements as reported to the FEC, not just
independent expenditures.
In 2012, super PAC financial activity remained skewed, but overall fundraising and spending
increased sharply. For example, although all super PACs spent less than $100 million in 2010,
two Republican super PACs aloneRestore Our Future and American Crossroadseach spent
more than $100 million in 2012. These two groups were the only super PACs that raised or spent
more than $100 million in 2012. The most financially active Democratic super PAC, Priorities
USA Action, spent approximately $75 million. All other super PACs individually raised and spent
less than $50 million.
Even though the number of super PACs grew sharplyfrom 80 to more than 800 between 2010
and 2012many were not actively involved in fundraising or spending. In fact, only about 450
super PACs reported raising or spending any money during the 2012 cycle.44 Most that did
exhibited relatively modest activity; these super PACs raised a median of approximately $53,000
and spent a median of approximately $57,000. 45
Nonetheless, dozens of super PACs raised or spent millions of dollars. Specifically, 75 super
PACs reported raising or spending a total of at least $1 million; 27 raised or spent at least $5
million.46 Just 16 super PACs reported raising or spending at least $10 million during the 2012
44
This information is based on CRS analysis of super PAC data in the FEC Committee Summary File.
Ibid.
46
Ibid.
45
14
cycle. A small number of super PACs also dominated fundraising and spending in 2012, albeit to
a slightly smaller degree than in 2010. Whereas 10 super PACs accounted for about 75% of super
PAC fundraising and spending in 2010, 10 super PACs in 2012 collectively raised approximately
$531.8 million and spent approximately $522.7 million, representing about 65% of all super PAC
spending.
Table 2 below summarizes financial activity of the 10 super PACs reporting the largest receipts
and expenditures for 2012. The table reports total disbursements rather than only IEs. Therefore,
it is important to note that although these entities raised and spent the most overall, other super
PACs might have more direct impact on the election through higher spending on IEs that call for
election or defeat of particular candidates.
Table 2. The 10 Super PACs Reporting the Most Receipts and Disbursements for the
2012 Election Cycle
Total Receipts
Total
Disbursements
$153,741,731
$153,316,373
AMERICAN CROSSROADS
$117,472,407
$117,044,325
$79,050,419
$75,333,806
MAJORITY PAC
$42,121,541
$42,117,050
$35,844,951
$35,689,886
$23,921,705
$23,861,421
$23,453,198
$22,621,967
WORKERS VOICE
$21,855,151
$21,687,667
$18,253,913
$17,931,937
$16,264,036
$13,079,983
Committee Name
Source: CRS analysis of super PAC data in the FEC Committee Summary File.
Notes: Committee names appear as listed in the FEC data accessed March 2013. All figures are rounded
compared with the original data. These figures could be affected by future amended filings. Total disbursements
include all expenditures, not only independent expenditures. The table relies on combined receipt and
disbursement data. Separate analyses of disbursement and spending data could yield different results.
Ibid. This figure excludes IEs supporting or opposing third-party and independent candidates.
15
of that spending was far more likely to oppose candidates than to support candidates. Some of the
increase in spending would be expected during a presidential election year, but the rapid growth
in super PAC activity during just two election cycles suggests that the groups are solidifying their
presence in American elections. As the data below show, super PACs were active across federal
elections.
Discussion
As noted above, super PACs spent approximately $90.4 million in 2010 overall and almost $800
million overall in 2012. Their independent expendituresthose expenses devoted to calling
explicitly for election or defeat of a federal candidate and perhaps the best indicator of super
PACs influence in electionsaccounted for 70%-80% of their spending during both election
cycles. Table 3 below shows how super PACs chose to prioritize their spending on House,
Senate, and presidential contests in 2012.
Table 3. Overview of 2012 Super PAC Independent Expenditures by Type of Race
and Party
Chamber
Party
Support or
Oppose
Total IE Spending
HOUSE
DEMOCRATIC
OPPOSE
$26,473,473
SUPPORT
$16,693,098
OPPOSE
$42,988,145
SUPPORT
$16,875,654
OPPOSE
$34,313,099
SUPPORT
$12,188,177
OPPOSE
$63,514,924
SUPPORT
$24,033,595
OPPOSE
$189,330,326
SUPPORT
$18,086,773
OPPOSE
$118,289,181
SUPPORT
$58,064,074
REPUBLICAN
SENATE
DEMOCRATIC
REPUBLICAN
PRESIDENTIAL
DEMOCRATIC
REPUBLICAN
Source: CRS analysis of 2012 Federal Election Commission independent expenditure reports.
Notes: Information in the table is as reported in FEC independent expenditure reports. CRS calculated the
information in the Total IE Spending column. The table excludes third-party and independent candidates.
When considering super PAC spending on IEs in 2010 and 2012, readers might find percentages
more illustrative than raw spending totals.48 Figure 2 below displays the percentage of IE
spending favoring and opposing candidates across various types of races in 2010 and 2012.49 As
48
Table 3 excludes 2010 data to conserve space, but the data are available from the author and in previous versions of
this report.
49
The data represent total spending. Although not reflected in FEC reports, alternative measures might include, for
example, the number of unique advertisements, gross rating points (in brief, a measure of advertising impressions)
purchased, etc.
16
the figure shows, there are both similarities and differences between 2010 and 2012 super PAC IE
spending across chambers and parties.
Figure 2. Support and Opposition for Federal Candidates in 2010 and 2012
Super PAC Independent Expenditures
Source: CRS figure and analysis of Federal Election Commission independent expenditure reports.
Notes: Support and opposition labels are taken from independent expenditure reports. Percentages are based
on dollar amounts spent, not number of expenditures. The figure excludes IEs made supporting and opposing
independent and third-party candidates.
Although overall spending increased sharply, as discussed previously, the ratio of support-andopposition spending in House-contest IEs among super PACs was roughly consistent between
2010 and 2012. A large plurality of the spending, approximately 46% of IE spending in 2010 and
42% of IE spending in 2012, opposed Republican candidates, compared with about 26%-30% of
IEs that opposed Democrats. In Senate contests, a greater proportion of spending favored
Democrats in 2012 than in 2010. Specifically, less than one-third of super PAC IE spending in
2010 Senate contests favored Democrats by either opposing Republicans (28.1%) or supporting
Democrats (3.1%). In 2012, however, more than half of super PAC IE spending favored
Democrats by opposing Republicans (47.4%) or supporting Democrats (9.1%). At the presidential
level, almost two-thirds of 2012 super PAC IEs favored Republicans by either supporting
Republicans (15.1%) or opposing Democrats (49.3%). (Super PACs did not exist in the 2008
presidential cycle.)
17
50
This section only shows data in the figures and table for spending in the 25 contests in which super PACs spent the
most on IEs. The underlying CRS analysis is based on all super PAC IE spending.
51
These are the CO Senate through AK Senate entries on the top of the left side of the figure.
18
Figure 3. The 25 Congressional Races in 2010 and 2012 in Which Super PACs
Spent the Most on Independent Expenditures
Source: CRS figure and analysis of Federal Election Commission independent expenditure reports.
19
Discussion
Super PACs address some of the most prominent and divisive issues in campaign finance policy.
Most attention to super PACs is likely to emphasize their financial influence in elections, as is
typically the case when new forces emerge on the campaign finance scene. Underlying that
financial activity is law, regulation, or situational guidance (e.g., advisory opinions)or the lack
thereofthat shape how super PACs operate and are understood.
Policy Approaches
As noted previously, despite Citizens United and SpeechNow, federal election law and FEC
regulations have not, as of this writing, been amended to reflect the rise of super PACs. If
Congress considers it important to recognize the role of super PACs in some way, it could amend
FECA to do so. As it has generally done with other forms of PACs, Congress could also leave the
matter to the FECs regulatory discretion.52 The following points may be particularly relevant as
Congress considers how or whether to proceed.
Because advisory opinions do not have the force of regulation or law, the status
of super PACs is arguably unsettled. Additional legislative or regulatory action to
implement super PAC components of Citizens United and SpeechNow might
provide additional clarity to those wishing to organize or contribute to super
PACs.
52
For example, traditional PACs, known as separate segregated funds, originally arose from advisory opinions in the
1970s. Congress later incorporated the PAC concept into FECA amendments. For a historical overview, see, for
example, Robert E. Mutch, Campaigns, Congress, and Courts: The Making of Federal Campaign Finance Law (New
York: Praeger, 1988), pp. 152-185; and Anthony Corrado, Money and Politics: A History of Federal Campaign
Finance Law, in The New Campaign Finance Sourcebook, Anthony Corrado, Thomas E. Mann, Daniel R. Ortiz, and
Trevor Potter (Washington: Brookings Institution Press, 2005), pp. 7-47.
20
high-profile issues in recent years. The result could resemble the status quo, in
which there are few definitive answers about how super PACs are regulated. If
Congress chose the rulemaking approach, providing as explicit instructions as
possible about the topics to be addressed and the scope of regulations could
increase the chances of the rules reflecting congressional intent. Doing so might
also increase the chances that consensus could be achieved during the
implementation process.
What is the Relationship Between Super PACs and Other Political Committees
or Organizations?
As noted previously, the FEC considers super PACs to be political committees subject to the
requirements and restrictions contained in FECA and FEC regulations. As such, super PACs are
prohibited from coordinating their activities with campaigns or other political committees (e.g.,
parties).53 Particularly during the 2012 election cycle, some observers raised questions about
whether super PACs were really operating independently or whether their activities might violate
the spirit of limits on contributions or coordination regulations. The following points may be
relevant as Congress assesses where super PACs fit in the campaign environment.
53
As noted previously, this report reflects common understanding of regulation and law as applied to super PACs.
Subsequent changes in law or regulation that explicitly address super PACs could yield alternative findings.
54
See, for example, Nicholas Confessore, Lines Blur Between Candidates and PACs with Unlimited Cash, New York
Times, August 27, 2011, p. A1; Steven Greenhouse, A Campaign Finance Ruling Turned to Labors Advantage, New
York Times, September 26, 2011, p. A1; and Kenneth P. Vogel, Super PACs New Playground: 2012, Politico,
August 10, 2011, online edition retrieved via LexisNexis.
55
For example, American Crossroads is a registered super PAC; Crossroads Grassroots Policy Strategies (GPS) is a
501(c)(4) tax-exempt organization. The same is reportedly true for perceived Democratic counterparts Priorities USA
Action and Priorities USA, respectively. See, for example, the sources noted in the previous foot note; and Eliza
Newlin Carney, The Deregulated Campaign, CQ Weekly Report, September 19, 2011, p. 1922.
21
As noted previously, super PACs must identify donors who contributed at least
$200. This requirement sheds light on contributions that go directly to super
PACs, but not necessarily those that go indirectly to super PACs. In particular, the
original source of contributions to trade associations or other organizations that
later fund IEs through super PACs could go unreported. For example, assume
Company A made a contribution to Trade Association B, and placed no
restrictions on how the contribution could be used. Trade Association B then used
Company As funds to contribute to a super PAC. Trade Association Bnot
Company Awould be reported as the donor on FEC reports. As Figure 4 below
shows, an essential element in this relationship in this series of events is whether
the original contribution was made for the purpose of furthering an
independent expenditure. In practice, this means that those who do not wish their
identities to be reported to the FEC could make an unrestricted donation to an
intermediary organization, which then funnels the money to a super PAC. By
contrast, if a corporation, union, or individual chose to contribute directly to a
super PAC, or to make IEs itself, the entitys identity would have to be disclosed
to the FEC.
Figure 4. Sample Disclosure for Corporations and Unions Using Direct Spending
versus Contributions to Other Entities
Source: CRS figure based on analysis of current disclosure requirements discussed throughout this report.
Notes: An individual could also spend funds as described in the left side of the figure (e.g., as could a
corporation or union). The 501(c) groups on the right side of the graph refer to social welfare organizations
[(c)(4)s], unions [(c)(5)s], and trade associations (c)(6)s].
a.
Reporting obligations would also apply to electioneering communications (ECs), if applicable, although such
a scenario appears unlikely for super PACs.
b.
A corporation or union could provide administrative support to a connected PAC, but contributions must
come from voluntary donations raised subject to FECA limits.
Because super PACs are prohibited from coordinating their activities with
campaigns, Congress might or might not feel that gathering additional
information about super PACs independence is warranted. Whether or not super
22
PACs are sufficiently independent and whether their activities are tantamount to
contributions could be subject to substantial debate and would likely depend on
individual circumstances.
Concerns about the potential for allegedly improper coordination between super
PACs and the candidates they favor are a prominent aspect of the debate thus far,
but some might contend that more coordination would benefit super PACs and
candidates by permitting them to have a unified agenda and message. Candidate
frustration with outside spending is not unique to super PACs. Indeed,
uncoordinated activities by traditional PACs, parties, and interest groups are a
common occurrence in federal elections, although some contend that super PACs
make concerns about outside messages increasingly urgent.56 Some observers
contend that the ability to coordinate should, therefore, be increased. Others,
however, warn that permitting more communication between outside groups and
campaigns would facilitate circumventing limits on campaign contributions. If
Congress wished to limit potential coordination between super PACs and
candidates or parties, it could amend FECA to supersede the existing
coordination standard, which is currently housed in FEC regulations and has long
been complex and controversial.57
It remains to be seen whether super PACs will compete with or complement other
institutional actors in elections, particularly other entities that engage in
independent expenditures, such as political parties. It is also unclear whether,
over time, super PACs will primarily focus on multiple candidates or single
candidates. Thus far, developments suggest that, as with other non-party groups,
super PACs could both complement and threaten traditional parties. After the
2012 elections, for example, some observers blamed super PACs for exacerbating
alleged divisions among Republicans, while others saw them as a resource to
eliminate primary candidates that some political professionals viewed as
insufficiently mainstream to win general elections.58
56
See, for example, Josh Boak, Enter the Era of the Super PAC, Campaigns & Elections, September 2011, online
edition, http://www.campaignsandelections.com/magazine/us-edition/257312/enter-the-era-of-super-pacs.thtml. On
campaign concerns about outside messages generally, see, for example, Michael John Burton and Daniel M. Shea.
Campaign Mode: Strategic Vision in Congressional Elections (Lanham, MD: Rowman and Littlefield, 2003); R. Sam
Garrett, Campaign Crises: Detours on the Road to Congress (Boulder, CO: Lynne Rienner Publishers, 2010); and
Dancing Without Partners: How Candidates, Parties, and Interest Groups Interact in the Presidential Campaign, ed.
David B. Magleby, J. Quin Monson, and Kelly D. Patterson (Lanham, MD: Rowman and Littlefield, 2007).
57
The coordinated communication regulations are at 11 C.F.R. 109.21.
58
See, for example, Eliza Newlin Carney, Republican Super PAC War Splits the Party, Roll Call, March 20, 2013, p
1.
59
Civ. No. 11-259-RMC (D.D.C. 2011).
23
As the Appendix notes, and as is the case with most political committees,
assessing super PAC financial activities generally requires using multiple kinds
of reports filed with the FEC. Depending on when those reports are filed, it can
be difficult to summarize all super PAC spending affecting federal elections. Due
to amended filings, data can change frequently. Reconciling IE reports with other
reports (e.g., those filed after an election) can also be challenging and require
technical expertise. Streamlining reporting for super PACs might have benefits of
making data more available for regulators and researchers. On the other hand,
some may argue that because super PAC activities are independent, their
reporting obligations should be less than for political committees making or
receiving contributions.
Because super PACs (and other PACs) may file semi-annual reports during nonelection years, information about potentially significant fundraising or spending
activity might go publicly unreported for as long as six months. Consequently,
some super PACs did not file detailed disclosure reports summarizing their 2011
60
Federal Election Commission, FEC Statement on Carey v. FEC: Reporting Guidance for Political Committees that
Maintain a Non-Contribution Account, press release, October 5, 2011, http://www.fec.gov/press/Press2011/
20111006postcarey.shtml.
61
For additional discussion of disclosure matters generally, see CRS Report R41542, The State of Campaign Finance
Policy: Recent Developments and Issues for Congress, by R. Sam Garrett.
62
See, for example, 11 CFR 109.20-11 CFR 109.23.
63
See, for example CRS Report R41542, The State of Campaign Finance Policy: Recent Developments and Issues for
Congress, by R. Sam Garrett; Eliza Newlin Carney, The Deregulated Campaign, CQ Weekly Report, September 19,
2011, p. 1922; and Diane Freda, Section 501(c)(4) Spending Expected to Hit New Records in 2012 Election, Daily
Report for Executives, vol. 180 (September 16, 2011), p. J-1.
24
activity until after the 2012 Iowa caucus and primaries in states such as New
Hampshire, Florida, and South Carolina.
Given the preceding points, a policy question for Congress may be whether the
implications of the current reporting requirements represent loopholes that
should be closed or whether existing requirements are sufficient.64 If additional
information is desired, Congress or the FEC could revisit campaign finance law
or regulation to require greater clarity about financial transactions. As with
disclosure generally, the decision to revisit specific reporting requirements will
likely be affected by how much detail is deemed necessary to prevent corruption
or accomplish other goals.
Conclusion
Super PACs are only one element of modern campaigns. Regular media attention to super PACs
might give an overstated impression of these organizations influence in federal elections.
Nonethelessand notwithstanding that much about the organizations remains to be seenthere
appears to be no shortage of individuals and organizations eager to form these new political
committees that can raise and spend unlimited sums supporting or opposing federal candidates.
Super PACs join other groups in American politics, such as parties and 527 organizations, that are
legally separate from the candidates they support or oppose, but whom some regard as practically
an extension of the campaign. Questions of super PAC independence were particularly relevant in
2012, as super PACs competed to elect or defeat congressional and presidential candidates. As
with most campaign finance issues, whether Congress decides to take action on the super PAC
issue, and how, will likely depend on the extent to which super PAC activities are viewed as an
exercise in free speech by independent organizations versus thinly veiled extensions of individual
campaigns.
64
Members of Congress have taken a variety of positions over the appropriate level of disclosure for political
committees and other organizations in recent years. This is particularly true for what level of disclosure should be
required for contributions to organizations making IEs or electioneering communicationsperhaps most notably in
recent years through the 111th Congress debate over the DISCLOSE Act. See CRS Report R41264, The DISCLOSE
Act: Overview and Analysis, by R. Sam Garrett, L. Paige Whitaker, and Erika K. Lunder. In the 112th Congress,
Representative Van Hollen filed a rulemaking petition with the FEC stating that the agency had improperly interpreted
statute when writing regulations (11 C.F.R. 109.10(e)) that required disclosure of contributions supporting
independent expenditures only if the contributions were made for the purpose of furthering the IEs. See Federal
Election Commission, Rulemaking Petition: Independent Expenditure Reporting, 76 Federal Register 36000, June
21, 2011. As of this writing, the matter is unresolved.
25
65
26
For the analysis of spending on individual races, CRS standardized spellings of candidate names
and the indicators for the districts or states in which they sought election. The total spending
amounts and total IE amounts listed for the House and Senate races discussed are based on
amounts from individual candidate reports contained on the FEC website, which CRS combined
to yield totals for the entire race. These totals include primary and general election activity, and
are listed as such on the FEC website.
CRS calculated the favored Democrats and favored Republicans amounts by totaling sums in IE
reports listed as supporting or opposing candidates from each major party (e.g., favored
Democrats includes expenditures reported as supporting Democrats or opposing Republicans).
The favored measure arguably accounts for the overall effect of IE spending by examining both
supportive and opposing messages that could benefit one candidate over another. The measure
assumes that, for example, a negative message (reported as oppose) about a Republican candidate
advantages the Democratic opponent. This would not be so in all cases (such as in IEs aired
during primary contests). Overall, however, this approach may provide a more complete picture
of super PAC activities than one that assumes advertising that supports or opposes one candidate
has no effect on another.
This report does not attempt to assess the practical effect of these expenditures on individual
candidates or to fully document their implications in individual races. As such, the spending
discussed here should be regarded as one measure of super PAC activity, but not a comprehensive
accounting of super PACs electoral influence.
27