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How Campaign Finance Works

A beginner's guide to understanding how money flows through American political campaigns, from individual donations to PAC spending.

Last updated: February 1, 2026

How Campaign Finance Works in America

Campaign finance refers to the money raised and spent to influence elections. In the United States, federal campaign finance is regulated by the Federal Election Commission (FEC), which requires candidates and political committees to disclose their financial activity.

Who Can Donate?

Individual Contributors can donate up to $3,300 per candidate per election (primary and general are separate elections, so effectively $6,600 per cycle). There is no limit on how many candidates an individual can support.

Political Action Committees (PACs) can donate up to $5,000 per candidate per election. Traditional PACs raise money from their members and make contributions to candidates.

Political Parties can make direct contributions and coordinated expenditures on behalf of their candidates, subject to various limits.

Types of Political Committees

  • Candidate Committees: The official campaign committee of a candidate running for federal office
  • PACs: Raise money from individuals and organizations to contribute to candidates
  • Super PACs: Can raise and spend unlimited amounts but cannot coordinate with candidates or parties
  • Party Committees: National, state, and local party organizations that support their nominees

Where Does the Money Go?

Campaign spending typically covers:

  • Television and digital advertising
  • Staff salaries and consultant fees
  • Travel and events
  • Direct mail and voter contact
  • Polling and research
  • Office space and overhead

Disclosure Requirements

All federal candidates and committees must file regular financial reports with the FEC, disclosing:

  • Every contribution over $200 (including donor name, address, employer, and occupation)
  • All expenditures
  • Cash on hand and debts

These reports are public record and form the basis of the data presented on this site.

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