In the 2010 Supreme Court case Citizens United v. Federal Election Commission, the Court ruled that the government cannot restrict independent expenditures for political communications by corporations, associations, or labor unions. The key findings were:
- First Amendment Protection for Corporate Speech: The Court held that corporate funding of independent political broadcasts in candidate elections cannot be limited under the First Amendment. The majority opinion stated that political speech is indispensable to a democracy and that this is no less true because the speech comes from a corporation rather than an individual.
- Overturning Previous Restrictions: The decision invalidated provisions of the Bipartisan Campaign Reform Act (BCRA) of 2002 (also known as the McCain-Feingold Act) that prohibited corporations and unions from using their general treasury funds for “electioneering communications”—broadcast ads mentioning a candidate within 30 days of a primary or 60 days of a general election.
- Disclosure Requirements Upheld: While the Court lifted restrictions on corporate spending, it upheld the BCRA’s disclosure and disclaimer requirements for political advertising. This means corporations and unions must still disclose their spending and include disclaimers on advertisements, promoting transparency in the electoral process.
How Congress Could Address Corporate Lobbying Through Legislation:
To counteract the influence of corporate lobbying while respecting constitutional boundaries, Congress could consider several legislative strategies:
- Constitutional Amendment: Since the Supreme Court’s decision is based on interpreting the First Amendment, Congress could propose an amendment to the Constitution clarifying that constitutional rights are intended for natural persons only, not corporations. This would allow for the regulation of corporate political spending and lobbying activities. However, amending the Constitution is a challenging process that requires approval by two-thirds of both the House and Senate and ratification by three-fourths of the states. Given the unlikely prospect of this, the considerations below should be evaluated:
- Enhanced Disclosure and Transparency: Congress can strengthen laws requiring full disclosure of political spending by corporations and lobbyists. By mandating detailed reporting of contributions and expenditures, including funding sources for Political Action Committees (PACs) and Super PACs, the public gains better insight into who is influencing elections and legislation. Increased transparency can deter undue influence and allow voters to make more informed decisions.
- Regulation of Lobbying Activities:
- Strict Lobbying Regulations: Implement tighter regulations on lobbying activities, such as requiring lobbyists to register and report their interactions with public officials, limiting the amount they can spend on influencing legislation, and enforcing cooling-off periods for former government officials before they can become lobbyists.
- Limiting Gifts and Contributions: Prohibit or further limit gifts, travel expenses, and other incentives that lobbyists may offer to politicians, reducing the potential for conflicts of interest.
- Public Financing of Elections: Establish or expand public funding programs for political campaigns to reduce candidates’ reliance on large corporate donations. Matching small individual contributions with public funds encourages politicians to seek support from a broader base rather than a few wealthy donors. Make national election days a Federal Holiday to vote in person.
- Shareholder Approval for Political Expenditures: Require corporations to obtain consent from their shareholders before making significant political contributions or expenditures. This ensures that such spending aligns with the interests of the owners rather than just corporate executives.
- Tax Reforms: Adjust the tax code to remove deductions for corporate lobbying expenses or impose taxes on excessive political spending. This approach discourages corporations from allocating large sums to influence politics by making it more costly to do so.
- Strengthening Anti-Corruption Laws: Enhance laws that prevent quid pro quo arrangements between corporations and politicians. By increasing penalties for corruption and enforcing strict compliance, Congress can reduce the likelihood of policy decisions being swayed by corporate interests.