This first section provides the context for the debate on extending public financing to congressional elections, beginning with a discussion of two major political realities that inform that debate. The first is the presidential public financing system that has been in place since 1976 and has had mixed success in realizing the goals of its original sponsors. The second is the interplay between the concepts of public financing and campaign spending limits, which are often linked but which have very distinct characteristics; the 1976 landmark Supreme Court decision in Buckley v. Valeo contributed to that linkage because of its allowance for only voluntary spending limits, such as in conjunction with a public financing system. The section concludes with a summary of arguments for and against public financing, arguments which have not changed in essence over time but which have been shaped by the political realities noted above. The second section provides a historical review of efforts in Congress to enact public financing of its elections (although some attention is paid to presidential public financing as a precursor). The section begins with a brief review of early congressional interest and activity in the 20 th century, followed by a more detailed Congress-by-Congress discussion beginning with the 90 th Congress. Special attention is paid to the two periods in which congressional activity on public financing was the greatest: the Watergate-focused 93 rd Congress and the 100 th -103 rd Congresses. Public finance bills were passed by at least one chamber in those two periods, although the latter period was marked by a move toward downplaying public funds per se in favor of the broader concept of public benefits. The section concludes with a review of the major features of congressional proposals, presented as policy options to choose from in devising a congressional public finance system. The third section examines the experience of the 16 states that provide some form of public subsidies to candidates for state office. This section features a table ( Table 1 ) detailing these systems, and concludes with an analysis of the impact of public finance programs in the states. It is important to note from the outset, however, that this report does not examine recent constitutional and other legal challenges to some states' public financing programs. As developments in this area become clearer over time, this report will be updated. The fourth section offers a discussion of public opinion data on support for public financing of elections, as well as for the related idea of campaign spending limits. Public opinion is not as extensive on these questions as in the 1970s, when the idea of public financing was particularly prominent. The final section reviews the experience from public finance systems at both the state and presidential levels to offer some overarching observations for Congress possibly to consider in devising a public finance system for its elections, should it choose to do so. The report concludes with appendices to augment the information in the section on congressional proposals. Appendix A is a table ( Table A -1 ) providing details of the public finance (or benefits) measures that have passed either chamber (from 1973 -1993); because they passed at least one chamber, these bills are perhaps the most important for Congress to review before beginning a fresher look at the idea. To allow a more contemporary look at how recent public finance proposals have evolved, appendices provide detailed summaries of public financing legislation introduced in recent congresses. Two bills that propose to publicly finance congressional campaigns have been introduced in the 112 th Congress. Both bills, H.R. 1404 (Larson) and S. 750 (Durbin), are companion measures. These latest versions of the Fair Elections Now Act (FENA) are substantially similar, with some changes in proposed benefits to participating candidates, to versions introduced during the 111 th Congress. A third bill introduced in the 112 th Congress, S. 749 (Durbin), provides a separate funding mechanism for the public financing program proposed in S. 750 . Specifically, S. 749 would fund the public financing program through a 0.5% tax on those holding government contracts of more than $10 million. Additional discussion appears in the " 112th Congress " section of this report and in Appendix E at the end of this report. While public financing of congressional elections has been advocated for a century, contemporary discussions of these proposals are informed by two basic political realities of the past 30 years. First, the nation has had public financing in presidential elections since 1976. That system serves both as a model for proposals to extend public financing to congressional elections and as a case study of how a congressional system might and might not be structured. Second, in striking down mandatory expenditure limits in 1976 while allowing voluntary limits in the context of a public finance system, the Supreme Court's Buckley v. Valeo ruling resulted in a closer linkage between the distinct concepts of public subsidies for election campaigns and limitations on campaign spending. Since 1976, public funds have helped finance presidential elections, with the level of funds determined by a taxpayer designations on a voluntary check-off. This system was established initially under the Revenue Act of 1971 and augmented by the Federal Election Campaign Act (FECA) Amendments of 1974. Candidates who meet eligibility requirements and agree to voluntary limits on campaign expenditures are eligible for matching funds in the primaries. In the general election, major party candidates automatically qualify for full subsidies equal to the spending limit; minor party and independent candidates may also qualify for public funds by meeting specified criteria. Also, political parties may receive funding for their nominating conventions. Additional discussion of the provisions and evolution of the presidential public financing program appear in another CRS product. At the outset of any discussion on public financing proposals, it is important to address the question of expenditure limits because, almost invariably, legislative proposals for public funding are linked with candidates' adherence to spending limits. (In fact, the absence of spending limits in some public financing proposals, first offered in the 111 th Congress, marks a notable departure from most proposed public financing programs.) Despite this common linkage, public financing and spending limits are distinct concepts, with distinct potential benefits and drawbacks. Public financing of elections, at its core, is aimed at reducing reliance by politicians on private, interested sources of money for their elections. Expenditure limits are essentially aimed at curbing rising and, in the view of many, excessive amounts of money spent on elections. In fact, from the time public financing was first proposed by President Theodore Roosevelt in 1907 until the Supreme Court's 1976 ruling in Buckley v. Valeo (424 U.S. 1 (1976)), the impetus for passage stemmed more from the concern over the source of campaign money than the overall amount spent. In that landmark ruling, the Court struck down mandatory spending limits (such as those imposed on congressional candidates by the FECA Amendments of 1974), but allowed that in a voluntary system of public financing, it was permissible to require candidate adherence to spending limits as a condition of a government-provided benefit (i.e., public funds). Hence, spending limits in conjunction with public funding would be permissible because candidates voluntarily accepted them. In light of the Buckley decision, the prevailing view among policymakers has been that public financing offers the only realistic means of controlling campaign expenditures in congressional elections, short of enacting a constitutional amendment to allow mandatory limits (which Congress has refused to support on several occasions). Finally, it should be noted that some of the goals sought in the public funding and spending limit measures have been addressed in other legislation, which has been less sweeping yet often with significant bipartisan support. Proposals to lower campaign costs, without spending limits, have been prominent in Congress at least until enactment of the Bipartisan Campaign Reform Act of 2002 (BCRA). Bills to provide free or reduced-rate broadcast time and postal rates have sought to reduce campaign costs and the need for money, without the possibly negative effects of arbitrary limits. Bills to provide for tax credits for small individual contributions have sought to encourage a greater role for citizens vis-à-vis organized interest groups. These measures offer the potential of realizing some of the aims of the more comprehensive measures but without some of the perceived pitfalls. A few major points are common arguments in favor of public financing. Supporters say that public financing can reduce the threat of political corruption, enhance electoral competition, and allow candidates to focus on issues rather than raising money. To many observers, the amount of money spent in elections today is arguably corrupting the political system, forcing candidates and officeholders to spend increasing amounts of time raising money, possibly creating pressure on them to rely on affluent individuals and special interests for campaign assistance, conceivably deterring candidates without personal fortunes from attempting to run for office, and leaving an impression among some voters that elections are "bought and sold." Accordingly, one of the most prominent goals behind public financing is reducing the potential for corruption or the appearance of corruption. As political scientists Donald A. Gross and Robert K. Goidel have explained, "Public subsidies to candidates, whether in the form of direct grants or matching funds, are seen as a way to minimize the undue influence and corruption often ascribed to contributors and partisan fundraising." Many former lawmakers, interest group representatives, political professionals, and academic experts submitted written testimony for the McConnell v. FEC  lawsuit heard by a U.S. District Court and the Supreme Court of the United States in their consideration of BCRA. Some of this testimony included empirical analysis of claims about potentially corrupting influences from private money in campaign politics and related issues. Other public financing goals relate to electoral competition. Public financing provides candidates—regardless of personal wealth—with financial resources to wage campaigns. This allows candidates who might not otherwise run for office to do so. As is noted in the discussion of states' experiences with public financing, most programs require that candidates demonstrate political viability before being eligible for funds. If more candidates have access to funds, supporters say that electoral competition should increase. Finally, public financing is attractive to some because it is one of the few constitutional ways to limit campaign spending—a major concern among campaign reformers.