What is hard and soft money?

Cowboy hat By Jim Hightower - Sun., 8/1/99

HARD MONEY is the cash given directly to a political candidate.

Individuals, their spouses and children can give only $1000 per candidate per election, and $5000 to a PAC. There's a $25,000 total limit for each individual per year for everything.

PACs and party committees may donate $5000 per candidate per election.

Unions and corporations can't contribute directly to federal elections. (That's why they form PACs.)

SOFT MONEY is the unregulated cash given indirectly to a political candidate.

National party committees (e.g., DNC, RNC, DCCC, NRCC, DSCC, NRSCC, and the Republican Senate-House Dinner Committee) fund-raise from corporations, unions, and from individuals who have maxed out their $25,000 limit. There are no limits to these party favors.

A lot of soft money gets spent on "independent expenditures"—such as ads that can openly call for the election or defeat of a candidate so long as they are being placed independently of the candidates. The Supreme Court decided this was a good idea two years ago. Since then, the National Republican Senatorial Committee has outspent everyone else on "independent" ads—$9.7 million just on getting their senators elected in the 1995–96 elections!

Candidates, parties and lobby groups can form PACs to promote their causes and candidacies. PACs can give up to $15,000 annually to any national party committee, and $5,000 annually to any other PAC.