    [Public Papers of the Presidents of the United States: William J. Clinton (1997, Book I)]
    [June 4, 1997]
    [Pages 702-703]
    [From the U.S. Government Publishing Office www.gpo.gov]

    Letter to the Federal Election Commission Requesting Action To End the
    Soft Money System in Domestic Politics
    June 4, 1997

    To the Members of the Federal Election Commission:
        I am writing to you, pursuant to 11 CFR Part 200, to request that
    you take action under your existing statutory authority to ban ``soft
    money'' and end the system under which both political parties compete to
    raise unlimited sums from individuals, labor unions, and corporations.
        The rules governing our system of financing Federal election
    campaigns are sorely out of date. Enacted more than two decades ago when
    election campaigns were much less expensive, the rules have been
    overtaken by dramatic changes in the nature and cost of campaigns and
    the accompanying flood of money.
        Today, money is raised and spent in ways that simply were not
    contemplated when the Congress last overhauled our campaign finance
    laws. We must bring the rules up to date to reflect the changes in
    elections and campaigning.
        An important step in this process would be to change the rules
    governing the use and solicitation of ``soft money''--funds not subject
    to

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    the contribution limitations and prohibitions of the Federal Election
    Campaign Act of 1971, as amended (FECA). Currently Federal Election
    Commission (FEC) regulations (11 CFR 106.5) allow political parties to
    raise and spend soft money in elections involving State and Federal
    candidates by providing an allocation formula between Federal and non-
    Federal expenses incurred by party committees.
        These regulations, and limited additional guidance provided through
    advisory opinions, are the basis upon which party committees make
    expenditures and raise funds with respect to Federal and State
    elections. The use of soft money by party committees is largely based on
    the direction provided in these regulations.
        Whatever the merit of these regulations at the time they were
    adopted, it has become abundantly clear today that they are no longer
    adequate to the task of regulating campaigns. The role of soft money has
    grown dramatically in the past several elections so that by the 1996
    elections the two parties raised more than $250 million, more than
    triple the total of 4 years before.
        The current allocation system, in short, is simply outmoded.
    Accordingly, I propose that the FEC adopt new rules requiring that
    candidates for Federal office and national parties be permitted to raise
    and spend only ``hard money''--funds subject to the restrictions,
    contribution limits, and reporting requirements of FECA.
        The soft money ban I seek achieves similar goals as provisions of
    the ``Bipartisan Campaign Reform Act of 1997,'' introduced by Senators
    John McCain and Russell Feingold, and Representatives Christopher Shays
    and Martin Meehan. Specifically, I am requesting that the FEC consider
    new rulemaking to accomplish the following:
        1. Prohibit national political parties (and their congressional
    campaign committees or agents) from soliciting or receiving any funds
    not subject to the limitations or prohibitions of FECA. (This action
    would preclude, for example, contributions directly from corporate or
    union treasuries, or contributions from individuals in excess of the
    amount an individual can give to a national party's Federal account.)
        2. Prohibit any Federal officeholder or candidate (and his or her
    agents) from soliciting or receiving any funds not subject to the
    limitations or prohibitions of FECA.
        3. Provide that any expenditure by any national, State, or local
    political party during a Federal election year for any activity that
    influences a Federal election (including any voter registration or get-
    out-the-vote drive, generic advertising, or any communication that
    refers to a Federal candidate) must be paid for from funds subject to
    FECA. (This would end the allocation system, currently authorized by the
    FEC, under which hard and soft money are mixed for campaign activities
    that affect both State and Federal elections.)
        These steps, available to you under your existing statutory
    authority, will enable our election laws to catch up with the reality of
    the way elections are financed today, and along with new campaign
    finance reform legislation, will take significant strides toward
    restoring public confidence in the campaign finance process.
            Sincerely,

                                                          William J. Clinton

    Note: This letter was released by the Office of the Press Secretary on
    June 5. An original was not available for verification of the content of
    this letter.