Some of that soft money may have flowed back to North Carolina. It's illegal to spend soft money directly to benefit federal candidates, but several big donors said they gave to the party to help Wyden. Addicted to tobacco money Clinton and the Democrats declared war on the tobacco industry during 1996. But like teenagers sneaking off for a few forbidden puffs, Democrats satisfied their own addiction by steering tobacco money to state organizations, where it was less obvious. How money was spent may be as controversial as how it was raised.
Critics call the practice a form of money laundering.
In New Jersey, for example, most directed donations to state Democrats were, in turn, transferred to the committee's federal account and spent to benefit federal candidates, the Center for Analysis of Public Issues reported. But Neil Upmeyer, director of the Center for Analysis of Public Issues, noted New Jersey had no state races in 1996, making Senate, House, and presidential candidates the sole soft money beneficiaries. Oregon Democrats spent soft money on TV ads during the 1996 special Senate election. It was to help all Democrats. However, the paper noted, Thurber couldn't explain which other Democrats were helped.