Supreme Court Decision Abandons Limits on Corporate Contributions to Political Campaigns

On January 21, 2010, the Supreme Court of the United States issued a landmark opinion overturning limits on corporate spending for election campaigns.  In a 5- 4 decision, the Court ruled that such spending limits on corporations contradict the protection on political speech afforded by the First Amendment.  Commentators suggest that this decision will not only benefit corporations, but also labor unions.  The decision rejects the parts of the Bipartisan Campaign Reform Act, also known as the McCain-Feingold bill, “[that prohibit] corporations and unions from using their general treasury funds to make independent expenditures for speech that is an ‘electioneering communication,’” the constitutionality of which the court upheld in the 2003 opinion McConnell v. U.S.  Citizens United  v. Federal Election Commission,   No. 08-205, slip op. at 3 (U.S. Jan. 21, 2010). 

 

The decision addresses Citizen United’s 2008 documentary entitled Hillary: The Movie, a critical documentary of Democratic Presidential Primary candidate Senator Hillary Clinton.  Civil United wanted to release the documentary within 30 days of the election through video-on-demand, but feared recourse from the Federal Election Commission based on the BCRA.  Unable to “resolve the case on narrower ground without chilling political speech,” the Court held that the ban on campaign expenditures by corporations is unconstitutional. To read the full opinion, please visit http://www.supremecourtus.gov/opinions/09pdf/08-205.pdf.

 

The decision has received both praise and criticism.  While President Obama criticized the decision and promised a “forceful response” from Congress, Senate Minority Leader Mitch McConnell viewed the decision as a victory for free speech, “upon which our democracy depends.”  See Analysis: High court ruling a game-changer for campaign spending, link below. 

 

Justice Stevens delivered a ninety page dissenting opinion, part of which he read aloud from the bench, stating that this decision is a “radical change in the law.” 

 

For more information, please see:

Supreme Court reject limits on corporate spending in electoral campaigns, available at http://www.washingtonpost.com/wp-dyn/content/article/2010/01/21/AR2010012104866.html?hpid=topnews.

 

Analysis: High court ruling a game-changer for campaign spending, available at http://www.cnn.com/2010/POLITICS/01/21/supreme.court.analysis/index.html