What is soft money?

"Soft money" is a term used in the context of political campaign financing in the United States. It refers to unregulated and largely unrestricted contributions to political parties or other political organizations, as opposed to "hard money," which is subject to strict federal regulations.

Key points about soft money:

1. **Unregulated Contributions:** Soft money typically includes large contributions made to political parties or other groups for activities such as issue advocacy, voter registration, and generic party-building efforts. These contributions are not subject to the same limitations and regulations as traditional campaign donations.

2. **Campaign Finance Reform:** The use of soft money became a significant issue in campaign finance in the late 20th century. In an effort to limit the influence of soft money, campaign finance reform legislation, including the Bipartisan Campaign Reform Act of 2002 (commonly known as the McCain-Feingold Act), sought to restrict and regulate soft money contributions.

3. **Supreme Court Decisions:** Several U.S. Supreme Court decisions have had an impact on the regulation of soft money in political campaigns. The landmark Citizens United v. Federal Election Commission decision in 2010 allowed corporations and labor unions to spend unlimited amounts of money on independent political expenditures, contributing to changes in the campaign finance landscape.

4. **Evolution of Fundraising:** Due to campaign finance regulations, the landscape of political fundraising has evolved. While the use of soft money has been restricted for certain purposes, other forms of political spending and fundraising, such as super PACs (political action committees), have gained prominence.

It's important to note that campaign finance laws and regulations can vary by country, and soft money is a term specific to U.S. campaign finance. The distinction between hard money and soft money is subject to changes in regulations and legal interpretations, so the specific rules may evolve over time.