Delegation Resource Manual: The Lobbyists Dimension
Page 95
YMCA PA Youth & Government Program
What is A Political Action Committee?
Political action committee (PAC), an organization established by businesses, labor unions, and other interest
groups in the United States to channel financial contributions into political campaigns. PACs solicit
contributions, pool the funds, and make donations to the campaigns of candidates for national, state, and
local offices.
Labor unions organized the first PACs in the 1940s as a way to circumvent federal laws prohibiting the use of
union dues to support political candidates. Businesses first formed PACs in the 1950s. However, these
organizations remained in a legal limbo until the early 1970s, when changes in federal election law specifically
authorized the creation of business and other kinds of PACs. Legislators believed these reforms in the rules
governing campaign finance would limit the influence of money in political campaigns. However, these
reforms led to the proliferation of PACs and to dramatic increases in campaign spending.
The terms of the 1971 Federal Election Campaign Act permit PACs to make larger contributions than
individuals to any congressional candidate. While individuals may donate not more than $1,000 to a
candidate, a PAC may donate up to $5000. Moreover, allied or related PACs may coordinate their
contributions, greatly increasing the amount of money a congressional candidate receives from the same set
of interests and individuals. As a result, PACs have become very important in congressional races. PACs are
also active in state and local election contests. American presidential elections, by contrast, mainly depend
upon public funding
More than 4000 PACs are registered with the Federal Election Commission, which oversees campaign
finance. Despite concerns about the growing influence of PACs, their numbers have remained fairly constant
since the mid-1980s. Most PAC money goes to incumbent candidates, who usually have a better chance to
win than their challengers. . . .
. . . .Many critics assert that PACs corrupt the political process by allowing corporations and other interests to
influence politicians with large contributions. Politicians generally agree about the need for reform in
campaign finance contribution laws. However, the Democratic and Republican parties have been unable to
agree on the direction this reform should take. The Republican Party has developed an efficient direct-mail
fund-raising apparatus that can
generate hundreds of millions of dollars in small individual contributions. Thus, the Republicans would be
willing to place limits on PACs. The Democratic Party, by contrast, depends more heavily on PACs and fears
that limiting their role would hurt the party's electoral chances.
Contributed by Benjamin Ginsberg, B.A., M.A., Ph.D.
"Political Action Committee (PAC)," Microsoft® Encarta® Online Encyclopedia 2000
Imagine that you are a legislator and a well-known PAC has offered you its support. What would you want to know before
deciding whether or not to accept this offer?
Imagine that you decide to accept the support of this PAC. What is one advantage of accepting PAC support? One
disadvantage?
