Election signals end to soft money era

WASHINGTON -- After a multibillion-dollar election in which big money won most of the time, a new era in fundraising dawned Wednesday with stricter contribution limits -- and political strategists looking for loopholes.

Partisan groups are already popping up to take in the "soft money" that national parties are now barred from raising.

Sen. Russ Feingold, a lead sponsor of the law that took effect Wednesday, said he still believes it will take much of the big money out of federal elections.

"I think it will succeed in preventing what is the absolute worst offense, which is members of Congress and senators directly asking for these huge checks and having them deposited in political party accounts where they are under the control directly of the same politicians," Feingold said.

The law prohibits the national parties from raising unlimited contributions from corporations, unions and others, while doubling the amount federal candidates can collect from individuals, limited donations known as "hard money."

The new rules come after a record dash for cash this election year that paid off for most of the highest-spending congressional candidates.

Ninety-five percent of the biggest-spending House candidates won on Tuesday, while 25 of the 33 highest spenders in the decided Senate races, or about 75 percent, prevailed, according to an Associated Press analysis of spending figures compiled by the Federal Election Commission. The Louisiana Senate race was headed for a December runoff.

A cash advantage didn't always mean victory. Democratic Sen. Jean Carnahan of Missouri lost to Republican Jim Talent after spending roughly $10-million to his $4-million as of mid October, the most recent figures available.

At a glance

Key provisions of the new campaign finance law that took effect Wednesday:

Bans unlimited "soft money" contributions by unions, corporations and others to national party committees or federal candidates and officeholders, including entities they establish, finance, maintain or control.

Lets state and local party committees raise soft money for nonfederal election activity if their states allow it.

Doubles the individual contribution limit for federal candidates from $1,000 per election to $2,000. Primaries, general elections and runoffs are separate elections.

Restricts election-time political advertising by many special-interest groups. Many tax-exempt groups will be barred from airing TV and radio ads the month before a federal primary and two months before a general election if the ads name a federal candidate, are funded with unlimited corporate or union contributions and are targeted at the candidate's district.

Raises contribution limits for congressional candidates whose opponents are financing their own campaigns, after the opponents' spending reaches a certain level. Known as the "millionaire amendment."

Bans contributions to national party committees and federal campaigns by minors.

Adds detail to an existing ban on campaign contributions by noncitizens.

Directs the Federal Election Commission to write new rules spelling out the extent to which political parties, interest groups and candidates can legally coordinate their spending.

Imposes criminal penalties for violating key provisions of the law.

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