ALMIGHTY DOLLAR

Campaign finance in the US looks transparent but may not be really so

- ANIRUDHA KARINDALAM

THE FINANCING OF electoral campaigns in the US happens at the federal, state and local levels. It has various components that ensure transparency. Sources of funding include individual contributors (max $2,800), political action committees (max $5,000) and super public action committees (no limit but they cannot deal directly with candidates).

The Republican National Committee and Democratic National Committee are primarily responsible for raising and spending money for political campaigns. Both the RNC and DNC are registered with the Federal Election Commission, which is an independent agency that monitors campaign finance. Candidates can also organise fundraising events where attendees have to donate money. That apart, online fundraising happens through social media. There are even merchandise sales. Apparently, Trump merch sales were burgeoning following an assassination attempt on him.

The contribution rules in the US clearly state that a campaign donor has to be a US citizen or lawfully admitted permanent resident. The campaign “does not accept contributions from corporations... unions, federal government contractors, national banks, those registered as federal lobbyists or… foreign nationals….”

The Federal Election Commission, created in 1975, ensures that candidates and party committees disclose sources, amounts of contributions and how they are spent. The FEC has six commissioners appointed by the president and confirmed by the senate. Only three commissioners can be from the same political party and all resolutions require at least four votes in agreement.