The agreement included provisions sought by long distance telephone companies and the White House to increase the Justice Department's role in deciding which companies could enter into competition with the long distance carriers. The agreement between the Clinton Administration and the four principal conferees was put on hold the same day because House Republican conferees objected to other provisions and to Clinton Administration statements claiming victory. On December 29, MCI made soft money contributions to both parties. The final version of the telecommunications bill, which contained the provisions sought by long distance carriers, was passed by the House and Senate. It was signed into law by President Clinton on February 8.
Hard money means contributions that are legal under federal law for federal elections.
Soft money means contributions which are outside the limits and prohibitions of federal law, including large individual or PAC contributions and direct corporate or union contributions. National political party committees were required to disclose their soft money contributions beginning in 1991, after Common Cause filed a petition with the FEC, challenging the way in which the FEC was treating soft money. The Common Cause study is part of a continuing series of studies examining soft money contributions to the national party committees.