ABSTRACT
This chapter examines how the system of financing American elections developed, analyses the various issues and problems which have become apparent and explains why passing legislation to reform the campaign finance system has proved so difficult. American elections were traditionally financed by private donations, both large and small, to a candidate's campaign or by a candidate combining such gifts with his or her own money. Campaign funding comes from four main sources: individual donations, contributions from political action committees, candidates' own resources and support from the political parties. There has been increasing criticism of the Federal Election Commission's performance in monitoring and enforcing campaign laws. Republicans have opposed spending limits on the grounds that they interfere with First Amendment rights, that they would be evaded by pushing money into other forms of campaign expenditure and that they would place challengers at a disadvantage.
