Mr. President, when major and hard-fought legislation nears enactment, the rhetoric on this floor can get a little overheated. Supporters of the measure sometimes overstate the importance of the legislation or exaggerate its benefits.…
Mr. President, when major and hard-fought legislation nears enactment, the rhetoric on this floor can get a little overheated. Supporters of the measure sometimes overstate the importance of the legislation or exaggerate its benefits. Opponents make doomsday predictions of what will happen if the bill becomes law. Only the passage of time can answer those arguments, but by the time that answers are available, the Senate has often has moved on to other battles.
Today, I want to take a few minutes on the floor to call the attention of my colleagues and the American people to some promising indications that the doomsday predictions of opponents of the McCain- Feingold bill have not come to pass. As we told the Senate at the time, McCain-Feingold will not solve every problem in our campaign finance system, and it hasn't. Lately, there has been significant controversy over so-called ``527 organizations,'' which the FEC has permitted to operate in violation, I believe, of the Federal Election Campaign Act of 1974.
Nonetheless, McCain-Feingold is working as it was intended to work. It closed the political party soft money loophole, and it has restored some sanity to a system that had truly spun out of control over the last several elections. While it is still too early to reach a final conclusion, it appears that the cynics and the doubters were wrong. And that is good news for the American people.
When the Senate considered the McCain-Feingold bill in March 2001, we had just finished a hotly contested Presidential election in 2000. Nearly $500 million of soft money was raised in that election by the two political parties, almost double what was raised in the 1996 election. Nearly two-thirds of that total was given by just 800 donors, who contributed over $120,000 each to the parties. The biggest donors contributed far more than that. The most generous soft money donor, AFSCME, gave almost $6 million, all to the Democratic party. SEIU gave a total of $4.3 million, mostly to the Democrats. AT&T gave a total of $3.7 million to the parties, the Carpenters and Joiners Union $2.9 million, Freddie Mac and Philip Morris, $2.4 million. Then we had the ``double givers''--companies that gave money to both parties. In 2000, there were 146 donors that gave over $100,000 in soft money to both of the political parties.
The appearance of corruption created by this avalanche of soft money was overwhelming. The public knew it; and we all knew it in our hearts. And the Supreme Court knew it when it upheld the McCain-Feingold bill against constitutional challenge in the case of McConnell v. FEC. The Court stated the following:
As the record demonstrates, it is the manner in which
parties have sold access to federal candidates and
officeholders that has given rise to the appearance of undue
influence. Implicit (and, as the record shows, sometimes
explicit) in the sale of access is the suggestion that money
buys influence. It is no surprise then that purchasers of
such access unabashedly admit that they are seeking to
purchase just such influence. It was not unwarranted for
Congress to conclude that the selling of access gives rise to
the appearance of corruption.
In this election cycle, I am happy to report, political party soft money is no more. Not reduced, not held in check, not capped--it is just gone. I consider this one of the most significant developments in American politics in the last 50 years. In 2002, a colleague told me on this floor that he had just finished making an hour of calls asking for large soft money contributions. He said he felt like taking a shower. Now, many of my colleagues, including some who did not support our bill, tell me how happy they are to not have to make those calls any more. That's a huge change in how we spend our time, and how we relate to people who have a big stake in what we do on this floor.
But what about the political parties? When we were debating McCain- Feingold, we had a real difference of opinion on how the bill would affect the parties. On one side were Senators who
argued passionately that the bill would kill the political parties.
One Senator said the following during our debate:
This legislation seeks, quite literally, to eliminate any
prominence for the role of political parties in American
elections.
This legislation favors special interests over parties and
favors some special interests over other special interests.
Equally remarkable is the patchwork manner in which this
legislation achieves its virtual elimination of political
parties from the electoral process.
The same Senator claimed:
But under this bill, I promise you, if McCain-Feingold
becomes law, there won't be one penny less spent on
politics--not a penny less. In fact, a good deal more will be
spent on politics. It just won't be spent by the parties.
Even with the increase in hard money, which I think is a good
idea and I voted for, there is no way that will ever make up
for the soft dollars lost.
There isn't any way, he said, that they will ever make up for the soft dollars lost.
Twenty months after the McCain-Feingold bill went into effect as the law of the land, our two great political parties are alive and well. Apparently they do have something to offer to the American people other than fundraisers for lobbyists. A new study by Anthony Corrado and Tom Mann of the Brookings Institution reports that through the first 18 months of the 2004 election cycle, the national party committees raised $615 million in hard money alone, which was more than the $540 million that they had raised in hard and soft money combined at a comparable point in the 2000 election cycle. Let me say that again. As of June 30, the parties had raised more in hard money in this election cycle than they had raised in hard and soft money combined at a similar point in the 2000 cycle.
Remember the Senator who said there was ``no way'' that the parties could make up for the soft money they would lose under the McCain- Feingold bill. Well it turns out that Senator was wrong.
The parties are not just surviving, they are thriving. And they are doing this not just by taking advantage of the increased contribution limits instituted by McCain-Feingold. Corrado and Mann state the following:
While these increases in the contribution limits have
provided the parties with millions of additional dollars, the
growth in party funding in 2004 is largely the result of a
remarkable surge in the number of party donors. Both parties
have added hundreds of thousands of new small donors to their
rolls.
The numbers are truly astonishing. The Republican National Committee has added a million new donors. The NRCC added 400,000 new contributors in 2003. The DNC has recruited more than 800,000 new small donors through direct mail alone. And these numbers don't include any new online contributions in 2004. And, of course, they don't include the hundreds of millions of dollars in hard money raised by the two major party presidential candidates.
The parties are stronger than they were before not just because they have raised more money than in 2000. Small contributors are a much better indicator of strength than big contributors. Small contributors volunteer, they are involved, they vote, and they inspire others to contribute and vote. I believe McCain-Feingold saved the political parties from the oblivion to which they were sending themselves with their reliance on the easy fix of soft money.
The argument over the effect of the bill on the political parties was just one of the disagreements we had when the bill was considered back in 2001. Another dispute concerned what would happen to all that soft money that had previously been contributed to the parties. Opponents of the bill expressed absolute certainty that the money contributed to the parties would simply migrate to less accountable outside groups. One Senator said the following during our debate:
Why do we want to ban soft money to political parties, that
funding which is now accountable and reportable? This ban
would weaken the parties and put more money and control in
the hands of wealthy individuals and independent groups who
are accountable to no one.
Another Senator quoted a prominent Republican lawyer who
said: ``The world under McCain-Feingold is a world where the
loudest voices in the process are third-party groups.''
Those of us who supported the bill certainly recognized that some donors would look for alternative ways to influence the political process. But we also thought that much of the money that was being given to the political parties was being given under duress. We argued that if Members of Congress and other public officials weren't asking for the money, much of it wouldn't be given at all. We had heard from countless corporate executives that the soft money system, which many had called legalized bribery, was really more like legalized extortion. I will never forget the words of Ed Kangas the former CEO of Deloitte Touche Tohmatsu. He said:
Businesses should not have to pay a toll to have their case
heard in Washington. There are many times when CEOs feel like
the pressure to contribute soft money is nothing less than a
shakedown.
In 1999, on this floor, I said the following in a debate with another Senator who actually supported the soft money ban, but asserted that soft money would simply flow to outside groups:
I have this chart. It is a list of all the soft money
double givers. These are corporations that have given over
$150,000 to both sides. Under the Senator's logic, these very
same corporations--Philip Morris, Joseph Seagram, RJR
Nabisco, BankAmerica Corporation--each of these would
continue making the same amount of contributions; they would
take the chance of violating the law by doing this in
coordination with or at the suggestion of the parties, and
they would calmly turn over the same kind of cash to others,
be it left-wing or right-wing independent groups?
I have to say . . . I am skeptical that if they cannot hand
the check directly to the political party leaders, they will
take those chances.
On this dispute, with 3\1/2\ months to go before the election, the jury is still out. But once again, the early indications are that the doomsday predictions of opponents of the bill will not come to pass.
Not long ago, the Wall Street Journal reported that it surveyed the 20 top corporate donors in the 2002 election cycle and more than half, including Microsoft, Citigroup, and Pfizer, are resisting giving large contributions to the outside groups, the 527s, that are trying to raise unlimited contributions since the parties can no longer accept them. As the article noted:
The reticence illustrates an uneasiness on the part of some
of the corporations to get sucked back into the world of
unlimited political contributions that they thought campaign
reform had left behind.
According to a Washington Post article in June:
[E]lection law lawyers said corporations are showing
significant reluctance to get back into making ``soft money''
donations after passage of the McCain-Feingold law.
According to the Center for Public Integrity, which maintains the most complete database of information on 527s using the reports required by the disclosure bill we passed in 2000, 527s that focus on federal elections along with labor-funded 527s have raised approximately $150 million as of June 30. This is far less than the $254 million that had been raised in soft money by the parties at a similar point in the 2000 election cycle and less than half of the $308 million raised in the first 18 months of the 2002 cycle. It is, of course, possible that 527 fundraising will pick up significantly in the wake of the FEC's determination in May that it will likely not regulate these groups as political committees in this election cycle. But the underlying problem with raising money for these organizations remain. That is very simple. It is central to this whole issue. They cannot offer the kind of access and influence that made the parties such effective soft money seekers prior to the enactment of McCain-Feingold.
There is no doubt that ideologically motivated wealthy individuals will continue to seek ways to influence elections. Most of the money being donated to the 527s is coming from such people. I continue to believe that many of these groups, since their stated goal is to influence federal elections, should be required to register as federal PACs, which can accept contributions of only $5,000 per year from individuals. But even if they continue to operate outside the law, they are not going to replace the political parties. Without significant corporate support, they simply cannot raise the kind of money that the parties raised in 2000, much less the amounts that would have been raised under the old system in this election cycle.
So to those who forecast or believed the doomsday scenarios back in 2001 and 2002 when we considered the bill, or who continue to believe them today, I suggest you look at the numbers. McCain-Feingold is working, and the Senate should be proud that it passed. As we approach the 2004 elections, and the airwaves become saturated with political advertising, note the difference. Party ads are paid for with the contributions of millions of hardworking Americans proud to participate in the political process and looking to parties and to their government to represent them, not the special interests that used to write the big checks.
I yield the floor.
I suggest the absence of a quorum.
The PRESIDENT OFFICER. The clerk will call the roll.