Oral arguments at the United States Supreme Court today could mark the end of more than 30 years of struggle for a tranche of conservative and libertarian intellectuals -- and for corporations that have had to find inglorious and meandering ways to influence the political system. Also at stake is how the court interprets the First Amendment. The stakes are that big.
Four weeks before the traditional First Monday in October start to its term, the court is taking the unusual step of convening to hear a case that does not involve life or death -- Citizens United v. FEC. Why the rush? Its ruling might very well require Congress to rewrite campaign finance laws in the middle of an election year, and the court is trying to be generous. The Supremes heard this case in March, but then it decided that the narrow range of issues at stake didn't do justice to the case. Like an edited version of a blog post, the court sent the case back to the litigants with the instruction to consider much broader principles than whether a certain action violated campaign finance laws.
The plaintiff is Citizens United, a non-profit run by conservative
activist and former House investigator David Bossie. During the 2008
campaign, Citizens United accepted donations from the non-political
bank accounts of corporations. Using some of that money, as well as
other funds solicited directly from individuals, Bossie produced a
critical movie about Hillary Clinton. The FEC, interpreting campaign
finance laws, told Bossie it would be illegal for him to run television
ads promoting his movie during the Democratic primaries because
corporate cash can't be used to directly influence elections using
television and radio. Bossie sued the government, and it was kicked up
to the Supreme Court, which heard oral arguments in March.
It
became apparent that the case touched many trigger points. It seemed,
to opponents of campaign finance regulations, a perfect example of how
the current legal framework directly impinged upon Bossie's free speech
rights with no discernible public interest to balance out the
restriction. The legal community that fights against campaign finance
laws decided to try and use the case to challenge the entire edifice of
law, philosophy and politics that limits what corporations and
individuals can give. And the court's skeptics -- two new skeptics --
Justices Alito and Roberts -- agreed, especially after Obama's deputy
solicitor general argued that, under the current law, the government
could ban certain books during elections.
In 1976, a Solomonic
court, in Buckley v. Valeo, birthed our modern system of campaign
finance. It upheld parts of a 1974 law that limited the amount of money
that individuals can give to political campaigns but found that the
Constitution prohibited similar limitations on what campaigns or
candidates can spend. By permitting contribution restrictions -- but
not spending restrictions -- the court was trying to strike a balance
between fairness and liberty. It interpreted the first amendment as a
protective or prophylactic mechanism -- the compelling state interest
here is that the political system becomes corrupt if people can
directly donate any amount of money they want to give to campaigns at
any point. The law was ostensibly neutral about political outcomes and
therefore, in the court's reading, did not unnecessarily restrict
speech; it merely protected the right of individuals to "speak" more
fairly. In other words, the court tried to, in Ronald Dworkin's phrase, protect "citizens from politics" when politics conflicted with their freedom.
For
years, dissenters have marveled at the Buckley majority's reasoning,
noting that the ruling itself produced significant distortions -- that
is, non-politically-induced changes -- to political campaigns, and that
functionally made it more likely that individuals would try to
influence campaigns in subtle, less direct and ultimately less
accountable ways. These skeptics took an entirely different point of
view about the First Amendment: it protects speech; and, in particular,
political speech, and is less concerned about an equal material
platform from which to influence campaigns than it is with the
iron-clad guarantee that political speech must be protected at all
costs. Representative of this reading: "If it is OK for a millionaire
to spend his own money promoting his own campaign, why can he not give
that money to someone else, who might be a more effective advocate for
that millionaire's views, so that this other person can run for
office," asks a Cato Institute blogger.
Campaign finance regulations, he writes, are thought restrictions because political contributions are a form of political expression.
In
1990, in Austin v. Michigan Right to Life, the court reaffirmed a
longstanding precedent that treated citizens and corporations and
unions differently in matters of politics, reasoning that individuals
acting alone to influence the system deserved more protection that
unions and corporations, who aggregate, magnify and ignore constituent
points of view, and who are more likely to receive special benefits
from governments (state, local, or federal).
As noted, unions
and corporations found other ways to spend money. Buckley did not
prohibit spending money to influence Congress to vote on particular
issues, essentially giving license (whether intended or not) to create
advocacy advertisements tied to specific issues that were clearly
intended to influence elections. That was easy, and soft money became
the main conduit for influence peddling. In the eyes of campaign
finance reforms, it had become the ether linking special interests and
politicians. So the McCain-Feingold campaign law, known to the
initiated as "BCRA," imposed new restrictions on this "soft money,"
including a complex set of rules for how those funds can be used in the
120 days before an election. Since Republicans had come to rely on soft
money and larger checks, the ruling hurt them disproportionately, as
did its timing: Democrats, out of power, embraced new technology and
rebuilt their small donor base, as did the difference between unions,
who could spend the money on even softer political activities like
voter registration, and corporations, who don't have the resources to
employ foot soldiers in the same way.
The regulations upon
regulations have created what even the reformers acknowledge is a
patchy system, kind of like tape on a leaky balloon. This metaphor
assumes that money is inherently corrosive when a single person or
entity can open the spigot and direct it in any particular direction.
It's no surprise that entities that like to spend money on politics do
not subscribe to this premise. In political circles, arguments about
campaign finance often start out with a reference to free speech but
degenerate into a debate about which political party will benefit more
from rule changes. This seems to be how Congress reasons as well; it
would behoove any observer of this debate to not assume that the
Supreme Court's majority will not tailor its ruling to fit either a
preconception about money and democracy, or a gut sense that pushing
certain buttons, rather than others, will help their party and their
causes. Looking at the array of liberal interests
who oppose finance restrictions, it is tempting to see this fight as a
battle for principle, rather than for expediency. But expediency isn't
always a bad thing in democracies, and money is literally the currency
that interest groups use to perpetuate their existence. (As the old
saying goes, Union, Labor, Party, Life.)
So, the court will
hear Citizens United for a second time, and has given itself a much
broader mandate. There are two justices on the bench who have never had
the chance to rule on BCRA before and whose background suggests that
they're skeptical of campaign finance regulation in general.
In
practice, the court isn't likely to tear down the entire Buckley wall,
but almost every observer expects the court to expand the ways that
how corporations and individuals can influence elections. If moneyed
interests are inherently corrupting, this is bad news. If they're not
-- and they're just exercising their legitimate speech rights -- this
is thrilling. Here is where the authors of BCRA are at a disadvantage:
the campaign finance laws have gotten so cumbersome that even
proponents of regulation in general are anxious about the law's
constitutionality and feasibility.
In some ways, the court's
rehearing is a shot across the bow to Congress. The Chief Justice, who
is known for this sort of maneuver, seems to be suggesting that
Congress ought to take a new look at campaign finance legislation, or
else the court might be forced to intervene in a more radical way.







"Also at stake is how the our interprets the First Amendment."
Come again?
I saw that too. I believe it's "Also at stake is how the court interprets the First Amendment."
Just a minor inaccuracy, it was Austin v. Michigan Chamber of Commerce. The previous case was Massachusetts Right to Life, which is probably the confusion...
If you think that moneyed interests are not inherently corrupting, where have you been for the past 100 years?
Oh, right. I guess you would be one of those moneyed interests.
Well, my I added my own inaccuracy... the Mass case was Mass Citizens for Life (MCFL).