FEC delays spending regulation
WASHINGTON – The Federal Election Commission stepped aside Thursday from regulating the unlimited contributions that have been flowing into the 2004 presidential race from the Democratic side, setting the stage for an outpouring of money from Republican donors who had up until now mostly remained on the sidelines.
In a closely watched decision, the FEC voted not to restrict the so-called 527 groups that have been spending unlimited money on behalf of Democrat John Kerry, saying they needed more time to review their options.
FEC Commissioner Michael Toner, a Republican who had urged his colleagues to take action, said he was disappointed and predicted that the competition for dollars now will grow even more feverish in a year when fundraising records are already being routinely shattered.
“We’re going to see a dramatic escalation of spending by 527 organizations on both sides of the aisle. It’s inevitable,” Toner said. “The 2004 election is going to be the Wild West.”
Two years after passage of the McCain-Feingold law, legislation that was intended to stem the flow of big money into national elections, this year’s presidential race is likely to become a free-for-all now that independent groups have discovered a way to avoid regulation of large contributions and the government has indicated it will not stop them, political observers say.
The Bush campaign, Republicans and some FEC commissioners had argued that nonparty groups should be regulated under the same rules that now prohibit “soft money” – corporate, union or unlimited contributions – from being spent in the presidential and congressional elections. The McCain-Feingold law broadly bans soft money from federal elections.
The “527” groups, named for the section of the Internal Revenue Service code that they are registered under, have argued that the soft-money ban does not apply to them.
The election commission’s 6-0 decision to postpone action for three months ostensibly means Democratic leaning groups such as the Media Fund, America Coming Together and MoveOn.org Voter Fund can continue spending tens of millions of dollars unabated on advertising and political activities opposing President Bush.
FEC commissioners made clear Thursday that even if they take action later this year to rein in the groups, new rules would have no bearing on the November election.
Within minutes of the vote, the conservative advocacy group Progress for America urged other Republican-leaning nonprofits to “accelerate their efforts to counter the liberals’ activities.” Group president Brian McCabe said the FEC decision gives them “jet fuel to take off from here.”
Grover Norquist, president Americans for Tax Reform, another conservative nonprofit, vowed Thursday to “match the other folks dollar for dollar.”
RNC Chairman Ed Gillespie and Bush campaign chairman Marc Racicot issued a statement calling the agency’s decision to postpone action “irresponsible.”