A Hard Rain of Soft Money

Unregulated “soft money” is pouring into the coffers of the major parties at a record rate this year, as special interests with business pending in Washington maneuver to buy access and favors in advance of next year’s election. It’s impossible to exaggerate the distorting effect on political campaigns--and on the legislative process--that such a torrent of money can produce. Most in Congress recognize that the rules on how soft money may be spent are routinely breached. Many favor outlawing or at least severely limiting these donations, but congressional leaders have for years refused to allow a vote on campaign finance reform.

Common Cause, the nonprofit public advocacy group, reports that in the first six months of 1999 the two parties together raised $55 million in soft-money contributions, an 80% increase over 1995, the year before the last national election. Among the biggest givers were the telecommunications, pharmaceutical, insurance and securities industries, trial lawyers and organized labor. Contributions to political parties are limited in amount--individuals may give no more than $20,000 a year and corporations may not give at all. But there is no ceiling on soft-money contributions, which are supposed to be for general party-building purposes and not to influence federal elections. In fact, soft money heavily funds ads that favor one party or candidate, and the evidence indicates that such ad blitzes are often effective.

Existing regulation of soft money is a sham that corrupts the electoral process and encourages public cynicism about its validity. Special interests don’t hand over millions to the political parties out of an enlightened sense of selfless good citizenship. They expect to benefit in return, and more often than not their gains come at the public’s expense. Congress knows full well just how this racket works. The remedy is in its hands.