Panel Backs Curbs on Federal Election Funds

A House committee, over protests that it was protecting incumbents and failing to tighten campaign finance laws, on Wednesday approved legislation to prohibit challengers in congressional races from using money originally raised for state or local elections.

The bill, sponsored by Rep. William M. Thomas (R-Bakersfield), cleared the House Administration Committee on a voice vote without a hearing. It is expected to be considered by the full House as early as next week, under an expedited procedure that bars amendments and limits debate but requires a two-thirds majority for passage.

Thomas said the measure is needed to close a loophole that allows state and local officials to get around federal restrictions on the amount of money they can draw from their political war chests when they decide to run for the U.S. House or Senate.

“This would create a level playing field,” Thomas said.

Opposed by Common Cause

On the other hand, Fred Wertheimer, president of the citizens’ lobby Common Cause, called the bill “an outrageous attempt to protect incumbents” at a time when Congress “has failed to take any action to deal with the fundamental problems in the congressional campaign finance system.”

He said Congress is “not dealing with PAC (political action committee) contribution limits, not dealing with campaign spending limits, not dealing with (House members) converting campaign money to personal use.”

The committee shrugged off a letter from Wertheimer urging it to reject the legislation.

Thomas said the bill would most benefit non-state officials who want to challenge incumbents in Congress but lack the cash support amassed by many state legislators and executives.

“This is not incumbent protection,” Thomas said. “It would expand the possibility of a far broader group being able to run for federal office. They wouldn’t have to compete with non-federal dollars dumped into the race at the beginning.”

Currently, federal law restricts a congressional candidate’s use of money raised originally for state or local campaigns. Funds from corporations and labor unions, from individuals who gave more than $1,000 and from special-interest PACs that gave more than $5,000 may not be used.

Fund-Raising Funds

Thomas said that some California officials get around those restrictions by using “prohibited” money for fund-raising events to benefit campaigns for federal office.

“The fund-raising hall was paid for by corporate or union money--the food, the invitations, the stamps, everything,” he said.

In an interview, however, Thomas could not cite any particular instance of the practice.

Rep. Newt Gingrich (R-Ga.) asked Thomas in a brief discussion in committee Wednesday if the practice was widespread. Thomas suggested that it was not, but that his legislation was meant to keep it from getting out of hand.

The bill, which would be effective after the elections in November, apparently is unrelated to Proposition 73, passed in California last June. That measure will force candidates for state and local offices to empty their campaign treasuries after each general election.