Bipartisan Campaign Reform Act

The difference between "hard" and "soft" money comes down to a few crucial words, and on administrative ruling.

"Soft money" is donated money to political parties, and is unregulated. Party buliding may consist of ads that educate about issues, as long as the ads don't tell you which candidate to vote for. The BCRA was enacted to prevent decption of existing federal campaign laws, laws that the Supreme Court has already upheld as constitutional. The Act provides definition of acampaign ad and an issue ad. "Hard money" goes to the candidate,and comes from political donations, that are regulated by law through the Federal ElectionCommission. Second, the Act redefines what constitutes a campaign advertisement.

Some feel the regulation on these moneys are inviolation of the Constitution, and the First Amendment. There have been several cases brought to the Supreme Court. Because soft money is not regulated, companies, unions and individuals may donate any amount to a political partyfor the purpose of "party building". Corporate and labor unions can not contribute to campaigns for federal elections. Individuals are allowed a maximum of $2,000 to a federal candidate, and $20,000 a year to a political party. hibits raising and spending "soft money" by federal oficeholders and candidates, and by te national parties.