Bush Signs Finance Reform Bill, Turns to Fund-Raising

In a subdued ending to a long and raucous debate, President Bush quietly signed legislation Wednesday overhauling campaign fund-raising rules, then set out to help Republicans collect about $4 million over two days.

Two lawsuits were immediately filed in federal District Court in Washington challenging the new law’s constitutionality.

In a written statement announcing that he had signed the bill, Bush said parts of it “present serious constitutional concerns.” But he said he believed the law, “although far from perfect, will improve the current financing system for federal campaigns.”

His fund-raising trip reflected the power of his office in that system. And that will endure: Much of the money he raised Wednesday would be unaffected by the new law, which prohibits unlimited contributions to the national political parties.

Bush signed the bill in the Oval Office with none of the fanfare and publicity that typically attend enactment of major legislation; looking on were only Vice President Dick Cheney and National Security Advisor Condoleezza Rice, the White House said. That underscored Bush’s ambivalence about a measure that was the signature issue of his chief GOP challenger in the 2000 presidential campaign, Sen. John McCain of Arizona.

Final congressional passage of the bill last week culminated an effort that began in 1995 and suffered several setbacks along the way. Yet neither McCain nor any of the other main sponsors of the bill--Sen. Russell D. Feingold (D-Wis.) and Reps. Christopher Shays (R-Conn.) and Martin T. Meehan (D-Mass.)--were invited to the signing.

The bill’s supporters said they were not surprised that it became law with so little fanfare, but some were irked by the offhand way they were notified. McCain, for instance, was called at home Wednesday by a mid-level White House aide.

He issued a terse, one-sentence response to the enactment of what is arguably the most significant legislative achievement of his career. It read: “I’m pleased that President Bush has signed campaign finance reform legislation into law.”

House Minority Leader Richard A. Gephardt (D-Mo.) termed it “unfortunate that the Bush administration decided not to invite these reformers to the White House” for the signing. “These members deserved greater recognition for their work,” he added.

The future of the law now rests in court. The first lawsuit filed, by the National Rifle Assn., focuses on challenging restrictions placed on advertising by interest groups, such as the NRA, unions or the Sierra Club. Under the law, such groups cannot run certain political ads 30 days before a primary vote or 60 days before a general election.

The bill “eviscerates the core protections of the 1st Amendment by prohibiting, on pain of criminal punishment, political speech,” the NRA said in its suit.

Another, broader lawsuit challenging most of the law’s major elements as an unconstitutional restriction on free speech was filed as promised by Sen. Mitch McConnell (R-Ky.), a longtime foe of the reform bill.

“Today, I filed suit to defend the 1st Amendment right of all Americans to be able to fully participate in the political process,” McConnell said.

McConnell’s lawsuit takes aim at what all sides in the debate agree is the measure’s key provision--the ban on the unlimited donations known as “soft money” to the national parties. During the 2000 campaign, the combined amount of soft money raised by the two national parties totaled about $500 million.

The law, which does not take effect until after the November elections, permits soft money donations of up to $10,000 a year to state parties. Much of the money raised by Bush on his current trip would be allowed under this provision.

Bush left the White House moments after signing the campaign finance measure to attend a fund-raiser in Greenville, S.C., on behalf of Rep. Lindsey O. Graham. He then traveled to Atlanta for a similar event benefiting Rep. Saxby Chambliss. The two Republicans are giving up their House seats to run for the Senate.

Today, Bush will headline a fund-raiser in Dallas for another GOP Senate candidate, Texas Atty. Gen. John Cornyn.

Counting the sums generated at these stops, Bush will have helped raise at least $60 million since he took office.

Asked in Greenville about his fund-raising efforts after signing a bill that seeks to stem the influence of big money in politics, Bush said, “I’m not going to lay down my arms. I’m going to participate in the rules of the system.”

Asked whether the absence of ceremony reflected displeasure with the measure, he said, “I wouldn’t have signed it if I was really unhappy with it.”

In his written statement, Bush praised the prohibition on soft money contributions by unions and corporations, saying that was “a legislative step for which I repeatedly have called.”

He expressed regret, though, that the prohibition also applies to contributions by individuals. “I believe individual freedom to participate in elections should be expanded, not diminished; and when individual freedoms are restricted, questions arise under the 1st Amendment.”

He also objected that the bill did not include a step that Republicans had long sought: providing union members control over how their dues to labor groups are spent in aiding political action committees. The support from Democrats that was crucial to the bill’s passage in Congress would have vanished if that had been part of the measure.

He applauded the increase the law allows in the amount of money that individuals can contribute directly to candidates. The limit on these so-called hard money donations will rise to $2,000 for every election from the $1,000 cap set almost 30 years ago.

But he said he had doubts about the legality of the restrictions on political advertising by special interests.

Bush divided his time Wednesday between the fund-raisers and appearances that are considered part of the official business of the presidency. In Greenville and Atlanta, he met with law enforcement officials and emergency personnel who respond to catastrophes such as the Sept. 11 terrorist attacks.

That way, the cost of his travel is split between the government and the politicians benefiting from his fund-raising. Bush’s recent predecessors had similar itineraries during election years.