Government affairs

Campaign finance laws can be confusing, and all the terms floating around—PAC, Super PAC, independent expenditure—only makes it even more complicated. Since the Federal Election Commission (FEC) was created in 1971, money in politics has been closely regulated. The FEC is the federal agency that regulates federal political activity affecting federal elections and, to a much more limited extent, state elections. 

Political action committees (PACs) were formed following the adoption of legislation that outlawed unions and corporations from using their treasuries to contribute directly to candidates and campaigns. The Congress of Industrial Organization (CIO) was the first to create a PAC in 1944 to assist in the re-election of Franklin D. Roosevelt. Since then, thousands of PACs have been created by varying groups, companies and unions.

PACs solicit voluntarily donations from interested parties. NALC’s federal PAC can only accept voluntary donations from NALC members, their immediate family members, and NALC staff members.

Federal PACs are limited in how much money they are able to contribute to federal candidates, national party committees, regular federal PACs and state-party federal accounts. A federal PAC must limit its contributions:

• up to $5,000 per election (primary, general, special and debt retirement),
• $5,000 per year to another federal PAC,
• $15,000 a year to a national party committee, and
• $5,000 a year to a state party committee’s federal account.

All donations and contributions must be reported to the FEC.

Super PACs are the result of a 2010 Supreme Court decision, Citizens United v. Federal Election Commission. The best way to look at a Super PAC is as an independent expenditure–only committee. Independent expenditures are public communications that are not coordinated with a federal candidate and that expressly advocate the election or defeat of that candidate or his or her opponent. Super PACs may raise unlimited funds from corporations, unions, associations and individuals. 

Understanding campaign finance can help NALC create a stronger political program for letter carriers. With all of the new ways to spend “hard” and “soft” money to make a different in elections, NALC is evolving to maximize letter carriers’ influence on elections to continue to support candidates who fight for letter carriers and who advocate strengthening the USPS.