After Senate Rebuff, Clinton Tries Plan B On Finance Reform Asks Federal Agencies To Rewrite Regulations

A day after the Senate blocked action on a campaign-finance overhaul, President Clinton tried to do it another way, calling on two U.S. agencies to put features of the stalled legislation into effect administratively.

In letters to the Federal Election Commission and the Federal Communications Commission on Friday, Clinton urged a ban on so-called “soft money” donations and requested that free and reduced-price broadcast time be mandated for candidates.

Clinton said in his letters that the campaign-finance overhaul appeared dead and “the most realistic next steps for reform will come from the actions of regulatory agencies.”

The step seemed assured to annoy congressional Republican leaders.

And even one of the sponsors of the legislation, Sen. John McCain, R-Ariz., indicated displeasure with the move through a spokeswoman.

“That’s something that should be decided by the executive and legislative branch,” said McCain spokeswoman Nancy Ives. “Mandating free broadcast time cannot and should not be done by a regulatory agency, and that applies to banning soft money as well.”

Both the FCC and the FEC are independent regulatory agencies and cannot be directed to take certain steps by Clinton. But, as president, he has considerable influence over the bodies.

And the general counsel of the FEC, Lawrence Noble, had already concluded, based on a petition by the administration, that the agency does have the authority to ban soft money.

A White House official traveling with the president, who is in Utah on a three-day family ski vacation, said that Sen. McCain’s pique was understood.

“I think Sen. McCain should be praised for his leadership, and all the work he has done,” said deputy press secretary Joe Lockhart. “But this week has to leave for most Americans the unmistakable picture that the Republican leadership will stop campaign finance reform at all costs.

“We want campaign finance reform. If Congress won’t deliver campaign finance reform, we’ll try to deliver it administratively.”

Clinton had hinted at such an administrative end run on Thursday as he criticized Senate Republicans for blocking the reform bill.

In a showdown test vote Thursday on the bill by McCain and Sen. Russ Feingold, D-Wis., supporters fell nine votes shy of the 60 needed to end a GOP filibuster, dooming the issue for the foreseeable future.

The centerpiece of the bill was a ban on unregulated “soft money” that flows by the millions to national political parties from corporations, labor unions and individuals.

In Friday’s letter to FEC members, Clinton wrote, “Yesterday’s defeat of comprehensive campaign finance reform legislation in the Senate makes it even more imperative that the Federal Election Commission act to end the soft money system.”

In the companion letter to the FCC, Clinton wrote that the agency should now act “to provide free and reduced rate airtime to candidates and take other steps that would reform political debate over the public airwaves.”

“I continue to believe that providing such airtime is the critical next step to strengthen our democracy, improve our political system, and give voters the loudest voice,” Clinton wrote.