527 Groups and Political Action Committees

The McCain-Feingold Act of 2002 banned soft money contributions directly to candidates. This rule does not apply to 527 groups as long as they do not make explicit endorsements of candidates by using phrases like "Vote for" and "Vote against."

Interest groups also can form a political action committee. They might represent a union, a business, or a non-profit organization. Any interest group can now donate up to $5,000 per candidate in both the primary and the general election. All expenditures made by PACs must be reported to the FEC.

What is the relationship between PACs and the candidates?

Candidates need money which PACs provide; PACs help candidates get elected that they believe will further the PACs political agenda.

Journal: The 2008 Election

Complete part six of your journal assignment. How did Barack Obama finance his political campaign? Compare his methods to those of his rival John McCain. What role did PACs and lobbyists play in financing his campaign?

After you have completed this journal entry, submit your journal for a grade.