Public Funding of Presidential Elections Brochure

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Public Funding of Presidential Elections

Federal Election Commission 

Published in August 1996 (updated February 2008)

Introduction

This brochure gives a brief history of Presidential election 

public funding and an overview of how the process works. The 

brochure also explains the ways individuals may support publicly 

funded Presidential candidates and the various materials on 

Presidential campaign finance available from the Federal Election 

Commission. The brochure was written to help students, reporters and other 

members of the general public understand the basics of public 

funding. It was not written for Presidential candidates and 

committees that wish to apply for public funds. They should consult the federal public 

funding laws and Commission regulations. What is Public Funding?

Public funding of Presidential elections means that qualified Presidential candidates

receive federal government funds to pay for the valid expenses of their political 

campaigns in both the primary and general elections. National political parties also 

receive federal money for their national nominating conventions. When and How Did it Begin?

The Federal Election Commission administered the first public funding program in 

1976. Eligible Presidential candidates used federal funds in their primary and general 

election campaigns, and the major parties used public funds to pay for their nominating 

conventions. Legislation for public financing of Presidential candidates was first 

proposed, however, in 1907. In his State of the Union message that year, President 

Theodore Roosevelt recommended public financing of federal elections and a ban on 

private contributions.

In 1966, Congress enacted the first public funding legislation, but suspended it a year

later. That law would have made U.S. Treasury funds available to eligible nominees in 

the Presidential general election through payments to their political parties. Funds would 

have come from a Presidential Election Campaign Fund in the U.S. Treasury consisting 

of dollars voluntarily checked off by taxpayers on their federal income tax returns. A 

subsidy formula would have determined the amount of public funds available to eligible 

candidates.

In 1971, Congress adopted similar provisions, which formed the basis of the public 

funding system in effect today. Under the 1971 Revenue Act,1the nominee, rather than 

the party, receives the public funds accumulated through the dollar checkoff. The 

1 See the Presidential Election Campaign Fund Act, 26 U.S.C. §9001 et seq. (Public Law 92­178).
Public Funding of Presidential Elections Brochure

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Revenue Act also placed limits on campaign spending by Presidential nominees who 

receive public money and a ban on all private contributions to them.

In a parallel development, Congress passed the 1971 Federal Election Campaign 

Act,2 which required full, detailed reporting of campaign contributions and expenditures

by all federal candidates, including Presidential candidates. The 1974 Amendments

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to 

the Federal Election Campaign Act completed the system we now have for public 

financing of Presidential elections. Those Amendments extended the public funding 

provisions of the Revenue Act to Presidential primary elections

4 and the Presidential 

nominating conventions of national parties. Court challenges to the expenditure limits

followed soon after Congress passed the 1974 Amendments. However, the Supreme 

Court, in two separate suits, first implied and later affirmed that expenditure limits for

publicly funded Presidential candidates are constitutional. (See Buckley v. Valeo (1976)

and Republican National Committee v. FEC (1980).) In 1976, Congress made minor

changes to the public funding provisions and in 1979 and 1984 increased the public 

funding entitlement and spending limit for national nominating conventions.5

How Does Public Funding Work?

To qualify for public funding, Presidential candidates and party 

convention committees must first meet various eligibility 

requirements, such as agreeing to limit campaign spending to a 

specified amount. Once the Federal Election Commission determines

that eligibility requirements have been met, it certifies the amount of

public funds to which the candidate or convention committee is entitled. The U.S.

Treasury then makes the actual payments from the Presidential Election Campaign Fund.

This fund consists of dollars voluntarily checked off by taxpayers on their federal income 

tax returns. (In 1993, the taxpayer checkoff was increased from $1 to $3. Public Law 103­66.) The checkoff neither increases the amount of taxes owed nor

decreases any refund due for the tax year in which the checkoff is made.

Primary Matching Funds

Partial public funding is available to Presidential primary candidates in the form of

matching payments. The federal government will match up to $250 of an individual's

total contributions to an eligible candidate. 

Only candidates seeking nomination by a political party to the office of President are 

eligible to receive primary matching funds. In addition, a candidate must establish 

eligibility by showing broad­based public support. He or she must raise in excess of

$5,000 in each of at least 20 states (i.e., over $100,000). Although an individual may 

contribute up to $2,300 to a primary candidate, only a maximum of $250 per individual 

applies toward the $5,000 threshold in each state. 

2 See 2 U.S.C. §431 et seq. (Public Law 92­225). 3 Public Law 93­443. 4 See the Presidential Primary Matching Payment Account Act, 2 U.S.C. §9031 et seq. 5 Public Laws 94­283 (1976 Amendments), 96­187 (1979 Amendments) and 98­355 (1984).
Public Funding of Presidential Elections Brochure

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Candidates also must agree to: · Limit campaign spending for all primary elections to $10 million plus a cost­ofliving adjustment (COLA).6 This is called the national spending limit. · Limit campaign spending in each state to $200,000 plus COLA, or to a specified 

amount based on the number of voting age individuals in the state (plus COLA), whichever is greater. · Limit spending from personal funds to $50,000. The campaign finance law exempts the payment of some expenses from the spending 

limits. Certain fundraising expenses (up to 20 percent of the expenditure limit) and legal 

and accounting expenses incurred solely to ensure the campaign's compliance with the 

law do not count against the expenditure limits. Once they have established eligibility for matching payments, Presidential candidates may receive public funds to match 

contributions from individual contributors, up to $250 per individual. The contributions must be in the form of a check or money order.

(Purchases of tickets to fundraisers and contributions collected through 

joint fundraising are matchable contributions, but loans, cash 

contributions, goods or services, contributions from political committees and 

contributions which are illegal under the campaign finance law are not matchable.)

Even if they no longer campaign actively in primary elections, candidates may 

continue to request public funds to pay off campaign debts until late February or early 

March of the year following an election. (However, to qualify for matching funds, contributions must be deposited in the campaign account by December 31 of the election 

year.) Eligible candidates may receive public funds equaling up to half of the national 

spending limit for the primary campaign. Because candidates receive many nonmatchable 

contributions, such as those from political committees, they generally raise more money 

than they receive in matching funds. General Election Funding

The Presidential nominee of each major party may become eligible for a public grant 

of $20 million (plus a cost­of­living adjustment) for campaigning in the general election.7

To be eligible to receive the public funds, the candidate must limit spending to the 

amount of the grant and may not accept private contributions for the campaign. Private 

contributions may, however, be accepted for a special account maintained exclusively to 

pay for legal and accounting expenses associated with complying with the campaign 

finance law. These legal and accounting expenses are not subject to the expenditure limit.

In addition, candidates may spend up to $50,000 from their own personal funds. Such 

spending does not count against the expenditure limit. Minor party candidates and new party candidates may become eligible for partial 

public funding of their general election campaigns. (A minor party candidate is the 

nominee of a party whose candidate received between 5 and 25 percent of the total 

popular vote in the preceding Presidential election. A new party candidate is the nominee 

6 The cost­of­living adjustment (COLA) is calculated annually by the Labor Department, using 1974 as the

base year. In 2008, the COLA brought the national spending limit to $42.05 million.

7 In 2004, COLA brought the public funding entitlement for a major party nominee to $84.1 million.
Public Funding of Presidential Elections Brochure

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of a party that is neither a major party nor a minor party.) The amount of public funding 

to which a minor party candidate is entitled is based on the ratio of the party's popular 

vote in the preceding Presidential election to the average popular vote of the two major

party candidates in that election. A new party candidate receives partial public funding

after the election if he/she receives 5 percent or more of the vote. The entitlement is

based on the ratio of the new party candidate's popular vote in the current election to the 

average popular vote of the two major party candidates in the election. Although minor and new party candidates may supplement public funds with private 

contributions and may exempt some fundraising costs from their expenditure limit, they 

are otherwise subject to the same spending limit and other requirements that apply to 

major party candidates. Expenditure Limits for Publicly Funded Candidates*

General Election

Primary Candidates  Major Party 

Nominees 

Minor/New Party 

Nominees 

National Spending 

Limit $10 mil. + COLA**  $20 mil. + COLA  $20 mil. + COLA

State Spending 

Limit

The greater of

$200,000 + COLA or

$0.16 x state VAP*** 

None None

Exempt

Fundraising Limit 20% of national limit  Not applicable  20% of national limit

Maximum Public

Funds Candidate

May Receive

50% of national limit  Same as national 

limit

% of national limit based on 

candidate's popular vote.

National Party 

Spending Limit for

Candidate**** Not applicable  $0.02 x VAP of U.S. + COLA 

$0.02 x VAP of U.S. + 

COLA

Limit on Spending 

from Candidate's

Personal Funds

$50,000  $50,000  $50,000 

*Legal and accounting expenses incurred solely to ensure the campaign's compliance with the law are

exempt from all expenditure limits. **Spending limits are increased by the cost­of­living adjustment (COLA), which the Department of Labor 

calculates annually using 1974 as the base year. ***VAP is the Voting Age Population, which the Department of Commerce calculates annually. ****The national committee of a political party may make special, limited expenditures, called coordinated 

party expenditures or 441a(d) expenditures, on behalf of its Presidential nominee, even if the nominee does

not accept public funds. Coordinated party expenditures are not considered contributions and do not count

against a publicly funded campaign's candidate expenditure limit.
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Presidential Spending Limits for 2008

As one of the conditions for receiving public funding, Presidential candidates must 

agree to abide by certain spending limitations. The limits applicable to publicly funded 

candidates who ran in 2008 are listed below. · General Election Limit: $84.1 million

· Overall Primary Limit: $42.05 million

· State­by State Primary Limits: 

State 

Voting Age 

Population 

(in  thousands)

Expenditure 

Limitation 

Alabama  3,504  $2,357,500 

Alaska  501  $841,000 

Arizona  4,669  $3,141,300 

Arkansas 2,134  $1,435,800 

California  27,169  $18,279,300 

Colorado  3,669  $2,468,500 

Connecticut  2,682  $1,804,400 

Delaware  659  $841,000 

DC 475  $841,000 

Florida  14,208  $9,559,100 

Georgia  7,013  $4,718,300 

Hawaii  998  $841,000 

Idaho  1,092  $841,000 

Illinois 9,653  $6,494,500 

Indiana  4,759  $3,201,900 

Iowa 2,277  $1,532,000 

Kansas 2,080  $1,399,400 

Kentucky  3,238  $2,178,500 

Louisiana  3,214  $2,162,400 

Maine  1,038  $841,000 

Maryland  4,260  $2,866,100 

Massachusetts 5,017  $3,375,400
Public Funding of Presidential Elections Brochure

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State 

Voting Age 

Population 

(in  thousands)

Expenditure 

Limitation 

Michigan  5,017  $5,130,100 

Minnesota  3,937  $2,648,800 

Mississippi  2,150  $1,446,500 

Missouri  4,454  $2,996,700 

Montana  738  $841,000 

Nebraska  1,328  $893,500 

Nevada  1,905  $1,281,700 

New Hampshire  1,018  $841,000 

New Jersey  6,622  $4,455,300 

New Mexico  1,470  $989,000 

New York  14,884  $10,014,000 

North Carolina  6,843  $4,604,000 

North Dakota  497  $841,000 

Ohio  8,715  $5,863,500 

Oklahoma  2,718  $1,828,700 

Oregon  2,885  $1,941,000 

Pennsylvania  9,646  $6,489,800 

Rhode Island  825  $841,000 

South Carolina  3,348  $2,252,500 

South Dakota  599  $841,000 

Tennessee 4,685  $3,152,100 

Texas 17,281  $11,626,700 

Utah  1,829  $1,230,600 

Vermont  490  $841,000 

Virginia  5,886  $3,960,100 

Washington  4,932  $3,318,200
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State 

Voting Age 

Population 

(in  thousands)

Expenditure 

Limitation 

West Virginia  1,425  $958,700 

Wisconsin  4,280  $2,879,600 

Wyoming  397  $841,000 

US Territories: 

American Samoa  n/a  $841,000 

Guam  n/a  $841,000 

Puerto Rico  n/a  $841,000 

Virgin Islands n/a  $841,000

Convention Funding

Each major political party is entitled to $4 million (plus cost­of­living adjustments)

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to finance its national Presidential nominating convention. A qualified minor party may 

become eligible for partial convention funding based on its Presidential candidate's share 

of the popular vote in the preceding Presidential election. A party convention committee may not spend more than the amount to which the 

major party is entitled. Contributions may be accepted, however, for a special account 

maintained exclusively to pay for legal and accounting expenses associated with 

complying with the campaign finance law. Contributions to this account count against the 

donor's annual limit for the Party. Certain supplemental services may also be provided by 

the host state and city governments and by local groups such as businesses and labor

unions. The host city may, for example, provide additional public transportation to and 

from the convention site. Or a business may sell or rent chairs, podiums, tables or other 

equipment to the convention committee at discount rates. What is the FEC's Role?

The Federal Election Commission ensures that candidates and convention committees

requesting public funds have satisfied the eligibility requirements. The FEC then certifies

payments of federal funds, which are actually made by the U.S. Treasury. Before certifying 

matching payments to primary candidates, the FEC first reviews submitted contributions to 

make sure they meet the requirements for matchability. Additionally, the FEC audits all 

public funding recipients to ensure that the funds were spent in compliance with the law. Under certain circumstances, the FEC may require the repayment of public funds.

8 In 2008, COLA brought the convention committee entitlement to a total of $16.82 million.
Public Funding of Presidential Elections Brochure

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Eligibility for Public Funds

To be eligible for public funds, a Presidential candidate or a party convention 

committee must first submit a letter of agreement and a written certification in which the 

candidate or committee agrees to: · Spend public funds only for campaign­related expenses or, in the case of a party 

convention, for convention­related expenses; · Limit spending to amounts specified by the campaign finance law; · Keep records and, if requested, supply evidence of qualified expenses; · Cooperate with an audit of campaign or convention expenses; · Repay public funds, if necessary; and

· Pay any civil penalties imposed by the FEC. Primary candidates must additionally certify that they have met the "threshold 

requirement" for eligibility by raising in excess of $5,000 in each of 20 states

(see "Primary Matching Funds," on page 2 above). A candidate may satisfy eligibility 

requirements and submit private contributions for matching payments any time after 

January 1 of the year before a Presidential general election. Actual payments are not 

made, however, until after January 1 of the Presidential election year.

Repayments of Public Funds

The Commission requires candidates and convention committees to repay public 

funds to the U.S. Treasury when the FEC audit determines that: · The amount of public funds received exceeds the amount to which the candidate 

or convention committee is entitled; · Spending limits are exceeded; · Public funds are used for purposes other than qualified campaign expenses; · Surplus funds remain after debts and obligations have been paid; · Interest is earned on invested public funds; or · The spending of public funds is not sufficiently documented. 

Presidential candidates and convention committees may challenge any FEC

repayment determination by following the procedures spelled out in FEC regulations.

How Can I Support My Candidate?

The following paragraphs have been written exclusively for individuals, to explain how 

they may support Presidential candidates. (Political committees and other organizations

should call the Commission in Washington, D.C., toll free 800/424­9530 or 202/694­1100.)

Contributions to Primary Candidates9

You may contribute up to $2,300 to a Presidential candidate in the primary election 

campaign, whether or not the candidate accepts matching funds. (The $2,300 limit applies to 

the entire primary process, rather than to a single primary held in a particular state.)

9 Contributions may not be made by foreign nationals or by individuals who are federal government

contractors.
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Contributions to Major Party Nominees in the General Election

A major party nominee who has accepted public funding for the general election may 

not accept any contributions to further his election. You may, however, help a publicly 

funded nominee by contributing to the candidate's compliance fund. A compliance fund 

is a special account maintained by publicly funded nominees solely for paying legal and 

accounting expenses incurred in complying with the campaign finance law. You may 

contribute up to $2,300 to the compliance fund of a major party nominee.

In the case of a major party nominee who is not publicly funded, you may contribute 

up to $2,300 to his/her general election campaign. Contributions to Minor and New Party Nominees in the General 

Election

You may contribute up to $2,300 to the general election campaign of a minor or new 

party candidate, whether or not the candidate accepts public funds.

Independent Expenditures

In both the primary and general elections, you may make your own "independent 

expenditures" to support or oppose a Presidential candidate, whether or not the candidate 

receives public funds. An independent expenditure is an expenditure for a communication 

that expressly advocates the election or defeat of a clearly identified candidate. An 

independent expenditure is not considered a contribution and therefore does not count 

against contribution limits as long as the expenditure is completely independent of the 

candidate's campaign. This means you may not make the expenditure at the request or

suggestion of the candidate or his/her aides or with their consent. Nor may you consult or

cooperate in any way with the candidate or campaign aides. Additionally, you may not 

use any material prepared by the candidate or campaign in the communication. Within these restrictions, you may, for example, place an ad on a billboard or in a 

newspaper urging the public to vote for your candidate. However, you must place a 

notice on the communication stating that you have paid for it and that it has not been 

authorized by any candidate (e.g., "Paid for by John Doe and not authorized by any 

candidate"). You must file a report with the Commission when the total amount of your independent 

expenditures aggregates over $250 during the calendar year. For more information, consult 

the Commission's Independent Expenditures brochure.

Volunteer Services

You may volunteer your services to a Presidential candidate's primary and general 

election campaigns (whether or not the candidate receives public funding) and to the 

candidate's political party. However, you must volunteer the services on your own time,

not on your employer's time. 

You may also pay for certain expenses as a volunteer. As long as you do not exceed 

certain limits, the money does not count as a contribution to the candidate. However, if you 

exceed the limits placed on these expenses, the amount over the limit counts as a 

contribution. Therefore, when spending money on volunteer activity for major party 

nominees receiving public funds, you must not exceed the limits.
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You may travel on behalf of the candidate, spending up to $1,000 both in the primary 

and general election campaigns. In addition, you may spend up to $2,000 annually for

travel on behalf of the candidate's party. You may spend any amount in normal living 

expenses incurred while traveling or engaging in other volunteer activity. You may hold a reception in your home or in a church or community room for the 

candidate or the candidate's party. You may spend up to $1,000, both in the primary and 

general elections, for food, beverage and invitations associated with the candidate's

reception. For a reception held to benefit the candidate's party, you may spend up to 

$2,000 annually for the same items. Contributions to Party Committees

You may contribute up to $28,500 a year

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to a national party committee and up 

to $5,000 a year to a state or local party committee. (A state party committee and the 

local party committees within that state usually share one $5,000 annual limit on 

contributions from a person.) Although major party committees are not permitted to 

contribute to their nominee in the general election if he or she accepts public funds, the 

national committee of a political party may support the nominee by making special,

limited expenditures on his or her behalf, as indicated in the Chart on Expenditure Limits. The party's national committee may designate a state or local party committee to make

these expenditures. In addition, state and local party committees may conduct voter

drives on behalf of the Presidential nominee and distribute pins, bumper stickers and 

other campaign materials benefiting the nominee.

How Can I Obtain Copies of Reports?

All campaign finance reports filed by Presidential committees and political 

committees supporting Presidential candidates are available for review and copying at the 

FEC's Public Records Office.11 The office puts reports on the public record within 48 

hours after their receipt. They contain detailed campaign finance information, including 

itemized accounts of contributions and expenditures in excess of $200 and debts and 

obligations owed to or by the candidate or committee. Additionally, the Public Records

Office makes available computer indexes, statistical studies summarizing data taken from 

reports and lists of individuals whose contributions enabled Presidential candidates to 

qualify for matching funds. The office also receives and makes public the reports on personal finances filed by 

Presidential and Vice Presidential candidates (except incumbent officeholders, who file 

with the Office of Government Ethics). These reports are required under the Ethics in 

Government Act of 1978, over which the FEC has no enforcement jurisdiction.

10 Total contributions by individuals in connection with federal elections may not exceed $108,200 during 

the period of January 1, 2007, through December 31, 2008. For more information see the FEC brochure, The Biennial Contribution Limit. 11 Reports related to U.S. House and Senate candidates are also available. The Public Records Office

maintains a complete set of reports from 1972 to the present.
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Those outside the Washington area may request documents by phone or mail. When 

identifying the documents you want, please try to include as much information as

possible, such as the full name of the political committee reporting, the date or type of

report or document desired, and your address and telephone number. The FEC charges 5 

cents per photocopied page, and 15 cents per page for paper copies made from microfilm, payable in advance. Sometimes a preliminary phone call can help you pinpoint your request and thereby 

expedite the FEC's response. Call toll free 800/424­9530 and ask for the Public Records

Office or call 202/694­1120.

How Can I Get More Information?

This brochure is not exhaustive in its descriptions. Should you have any questions or

wish to order other FEC publications, contact the Federal Election Commission, 999 E Street, N.W., Washington, D.C. 20463. Call toll free 800/424­9530 or

202/694­1100.

This publication provides guidance on certain aspects of federal campaign finance law. This publication 

is not intended to replace the law or to change its meaning, nor does this publication create or confer  any rights for or on any person or bind the Federal Election Commission (Commission) or the public. The reader is encouraged also to consult the Federal Election Campaign Act of 1971, as amended (2 

U.S.C. 431 et seq.), Commission regulations (Title 11 of the Code of Federal Regulations), Commission  advisory opinions, and applicable court decisions. For further information, please contact: Federal Election Commission  999 E Street, NW

Washington, DC 20463 

(800) 424­9530; (202) 694­1100 

info@fec.gov  www.fec.gov