Democratic Congressional Campaign Committee
The Democratic Congressional Campaign Committee Non-Federal Account
transferred $900,000 to Rod Blagojevich's gubernatorial campaign
in late 2001. The DCCC is operated by the Democratic National Committee.
Prior to the DCCC transferring the $900,000 to Blagojevich's state
political fund, Blagojevich transferred more than $632,000 from
the federal congressional campaign fund to the DCCC. The net result
of these transfers is a gain of $268,000 by the Blagojevich campaign.
For more information on "soft money," see ICPR's Issue
Briefing: Financial Alchemy.
Under Illinois state law, Blagojevich could have transferred the
$632,000 in his federal campaign directly into his state political
fund and used the money to campaign for governor. The $632,000 in
Blagojevich's federal congressional campaign fund was raised under
federal hard money rules. Those hard money rules limit the funds
that can be spent directly on federal elections to the funds raised
from individuals in amounts of not more than $1,000 or from political
action committees in amounts of not more than $5,000 per election.
Money given in unlimited amounts to political parties by individuals,
corporations, and unions for party building activities rather than
direct election activities is called "soft money." Soft
money cannot be used directly in federal elections. The DCCC's Non-Federal
Account is a soft money account.
The trade between Blagojevich and the DCCC was a swap of his hard
money for the party's soft money. Because hard money is much more
valuable in federal campaigns than soft money, the DCCC was willing
to trade $900,000 in soft money for $632,000 in hard money. The
DCCC got $632,000 in funds it may spend directly on federal elections,
and Blagojevich's gubernatorial campaign netted and additional $268,000
that he can spend on his state election. A Brennan Center analysis
of FEC filings shows that, during the 2000 election cycle, the DCCC
spent most of its soft money on fundraising efforts, followed by
media-issue advocacy and administration.
The Democratic Congressional Campaign Committee is a career patron
of Governor Rod Blagojevich (D).
From January 1, 1993 through June 30, 2005, the DCCC gave $4.6
million to candidates for Illinois statewide constitutional and
legislative office, 100% of which was contributed to Democrats.
Last revised August, 2005.
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