Campaign Finance Reform Measure Will Change the Way We Finance Congressional Elections
U.S. Senator Martin Heinrich (D-N.M.) is cosponsoring the Fair Elections Now Act, a bill to dramatically change the way Congressional elections are financed. Under the legislation, qualified Senate candidates would earn grants, matching funds, and television vouchers to run competitive campaigns based on small-dollar contributions, rather than rely on funding from wealthy donors and special interests.
The Fair Elections Now Act would help reduce the influence of wealthy donors and special interest lobbyists by creating a voluntary system of public financing for Senate candidates. Candidates who participate in the Fair Elections process would agree to limit their campaign spending to the amounts raised from small-dollar donors plus the amounts provided by the Fair Elections Fund.
"We have a broken campaign finance system that lets billionaires and corporations exercise outsized influence in our elections all while hiding in the shadows," said Sen. Heinrich. "We've seen that level of influence derail important issues that matter to working families in New Mexico -- like raising the federal minimum wage, reducing student loan interest rates, and fixing our broken immigration system. This bill helps change that by restoring public confidence in congressional elections that currently force candidates to constantly chase money for their campaign coffers. Our electoral process should be fair and open, and the results should ensure every citizen has an equal voice in our democracy."
The Fair Elections Now Act is sponsored by U.S. Senator Dick Durbin (D-Ill.) and is cosponsored by U.S. Senators Tom Udall (D-N.M.), Chris Murphy (D-Conn.), Tammy Baldwin (D-Wis.), Barbara Boxer (D-Calif.), Sherrod Brown (D-Ohio), Al Franken D-Minn.), Amy Klobuchar (D-Minn.), Patrick Leahy (D-Vt.), Ed Markey (D-Mass.), Claire McCaskill (D-Mo.), and Bob Menendez (D-N.J.).
A companion bill was introduced earlier this year in the House of Representatives by U.S. Congressman John Sarbanes (D-MD). The Government by the People Act would establish a similar public financing system for House candidates.
How the bill works:
The Fair Elections Now Act amends the Federal Elections Campaign Act of 1971 to establish a voluntary method for financing Senate campaigns. The Fair Elections system is composed of three stages:
The bill also establishes a "My Voice Tax Credit" to encourage individuals to make small donations to campaigns. The maximum refundable amount for the tax credit would be $25 for individuals and $50 for joint filers. To ensure that the tax credit targets small donors, it is only available to individuals who do not contribute more than $300 to a candidate or political party in any given year.
The bill also creates a type of small-donor political action committee, known as a "People PAC." In contrast to traditional federal PACs that can accept contributions of up to $5000 per year from individuals or Super PACs that can accept unlimited contributions, People PACs would only be permitted to accept contributions of $150 or less per election from individuals. People PACs would thus allow average citizens an opportunity for making their collective voices heard. Small donors would be able to aggregate their funds in a People PAC to make campaign contributions of up to $5000 per election to qualified Fair Elections candidates. Coupled with the Fair Elections public financing system, People PACs would elevate the views and interests of a diverse spectrum of Americans, rather than those of the traditional, wealthy donor class.
Special rules would apply for runoff and uncontested elections. Participating candidates would receive enough funding to compete in every election, without having to spend most of their time raising money.
The Fair Elections Now Act wouldn't add a dime to the deficit. It would be financed by a .05 percent fee on annual federal contracts over $10 million, with a maximum fee of $500,000 per year.