WASHINGTON — Even though it erected formidable new barriers between politicians and deep-pocketed donors, the election law upheld Wednesday by the Supreme Court has not shut down big money in politics.
Instead, creative operatives allied with both parties are constructing new groups to raise and spend political money to get around the law.
The law wiped out a vast source of unregulated funding, known as "soft money," that became a subject of scandal in the 1990s as corporations, unions and wealthy individuals wrote large checks to political parties. But as opponents of the law predicted, much of that money is finding its way back into the political system through other means.
"This law will not remove one dime from politics," said Sen. Mitch McConnell (R-Ky.), the law's leading congressional opponent. "Outside special interest groups have become the modern-day political parties. Soft money is not gone -- it has just changed its address."
It is too early to predict the law's full effect, but the unfolding 2003-04 campaign cycle is, to some degree, proving him right.
Activists this year have begun working outside the parties to scoop up big donations. Two liberal groups -- the Media Fund and America Coming Together -- held a meeting last week in Los Angeles to build support for efforts to mobilize Democratic voters and finance independent ads with the aim of defeating President Bush next year.
Billionaire George Soros has drawn notice for pledging $10 million to America Coming Together and $5 million, with another billionaire, Peter Lewis, to the liberal Internet organization MoveOn.org.
Republicans have set up comparable groups, such as the Leadership Forum, a fundraising group headed by top Washington lobbyists.
What these and similar groups share in common is that they are not formally affiliated with the national parties. That exempts them from the regulations placed on parties and candidates -- so long as the groups do not coordinate their activities with them.
According to a study by the nonpartisan Center for Public Integrity, at least $29 million has been raised this year by special tax-exempt political committees not subject to the new donation limits. These groups, known as "527 committees" after a section of the tax code, include the anti-tax group Club for Growth, a committee formed by the American Federation of State, County and Municipal Employees, and another labor-backed organization called Partnership for America's Families.
