Soft money fundraising by the NRSC belies the claim that soft money is spent only to affect non-federal elections. Like the other congressional campaign committees, the NRSC's sole purpose is to elect federal candidates to Congress. Freddie Mac, a government-sponsored financial institution that operates under a congressional charter, was the top soft money donor to the NRSC during the first six months of 1997, the Common Cause study found. Tobacco companies filled three of the top five spots on the NRSC top donors list for the six-month period. In March 1997, Senator McConnell assembled a coalition of anti-reform organizations for a press conference to denounce campaign finance reform legislation.
Hard money means contributions that are legal under federal law for federal elections.
Soft money means contributions made outside the limits and prohibitions of federal law, including large individual or PAC contributions and direct corporate or union contributions.