Handbook·Money in politics

How does money get into politics

Explainer·Verified 2026-07-10

The answer

Money reaches U.S. elections through a small number of legal channels, and each one trades off control against secrecy. Candidate committees and party committees take contributions capped by law and must publicly name every donor above $200. Traditional PACs and Super PACs sit outside the candidate's direct control, and Super PACs can raise and spend unlimited sums as long as they don't coordinate with a campaign. Nonprofit groups such as 501(c)(4) social welfare organizations and 501(c)(6) trade associations can spend on politics too, and unlike PACs, they generally never have to name their donors at all. The folk model treats "campaign finance" as one system with one set of rules. It's really several separate legal tracks, each built by a different court ruling, and a donor picks the track based on how much control or how much anonymity they want.

How it actually works

Three cases built the current system. Buckley v. Valeo (1976) treated campaign spending as protected speech, upholding contribution limits and disclosure requirements but striking down most caps on independent spending.¹ Citizens United v. FEC (2010) removed the ban on corporations and unions making independent expenditures.²¹ About two months later, SpeechNow.org v. FEC, a D.C. Circuit ruling applying that same logic, held that a group spending only independently of candidates could take unlimited money from anyone.³⁴ That second ruling, not Citizens United itself, is what created Super PACs, a distinction most public discussion skips.

For the 2025-2026 cycle, an individual can give a candidate's committee $3,500 per election, or $7,000 total counting a primary and general, $5,000 a year to a traditional PAC, and $44,300 a year to a national party committee's main account, all disclosed publicly through the FEC.⁵ Super PACs face no cap on what they raise or spend, provided they act independently of the candidate. Hybrid PACs, sometimes called Carey committees, run two separate accounts so they can do both at once, giving limited direct contributions from one account and unlimited independent spending from the other. Then there are 501(c)(4) social welfare nonprofits and 501(c)(6) trade groups, which can spend on politics as long as it isn't their "primary" activity, and which do not have to disclose donors, making them the main vehicle for what's called dark money.⁶

Who holds the power

Wealthy individuals, corporations, unions, and organized donor networks choose the channel based on how much control and how much secrecy they want. A donor who wants influence over a specific candidate uses the low-limit, disclosed committee route. A donor who wants to spend unlimited amounts while staying anonymous routes money through a 501(c)(4) first.

Where you come in

Every dollar given to a candidate committee, party committee, PAC, or Super PAC is searchable by name on FEC.gov and OpenSecrets.org. Checking who funds a candidate or an outside group takes minutes, and it's public record for everything except the 501(c)(4) and 501(c)(6) nonprofit channel. See how to look up who funds your representative for the walkthrough.

Glossary: dark money · super PAC · leadership PAC · 501(c) distinctions

Sources