The issue of campaign finance reform surfaced once again in 1996, amidst allegations that both Democrats and Republicans had raised funds illegally and over the large amounts of questionable funds that were donated to the candidates through their political parties. These rules were established in 1974 and have not been readjusted for inflation.
Soft money is defined as funds contributed to a political party instead of to a specific candidate.
In reality, however, large amounts of soft money are used to finance campaigns and to gain access to powerful politicians. This type of donation poured into campaign coffers in 1996, as there are no limits whatsoever on the size of soft money contributions. These 21-month totals amount to more than double what was raised in the entire two years of the 1992 Presidential race. These issues are being raised as federal financing for the Presidential election is at an all time high. Many of the campaign finance loopholes arose from the 1976 Supreme Court decision Buckley vs. Valleo, which ruled that restrictions on campaign spending were also restrictions on free speech.