PACs & Super PACs

What they are, where the money goes, and why campaign finance is one of the most debated topics in American politics.

If you've ever heard someone say "just follow the money," campaign finance is what they're talking about. Running for office in the United States costs money—a lot of it. And the organizations that raise and spend that money have names you've probably heard tossed around: PACs, super PACs, dark money groups. But what do those terms actually mean? Here's the plain-English breakdown.

What Is a PAC?

A political action committee (PAC) is an organization that collects money from individuals and donates it to political candidates, parties, or other committees. PACs have been around since 1944, when the Congress of Industrial Organizations (CIO) created one to raise money for President Roosevelt's re-election.

PACs are regulated by the Federal Election Commission (FEC) and must follow strict rules:

Individuals can donate up to $5,000 per year to a PAC
A PAC can donate up to $5,000 per candidate per election (primary and general count separately)
A PAC can donate up to $15,000 per year to a national party committee
All donors and expenditures must be publicly disclosed to the FEC
Corporations and unions cannot donate directly to traditional PACs from their general treasuries

Most PACs are created by corporations, trade associations, unions, or issue-advocacy groups. They pool small contributions from members or employees and distribute them to candidates who align with the group's interests. Think of them as a way for like-minded people to combine their political giving into something bigger than any one person could contribute alone.

What Is a Super PAC?

A super PAC (officially called an "independent expenditure-only committee") is a newer type of political committee created after two landmark court decisions in 2010: Citizens United v. FEC and a D.C. Circuit Court case called SpeechNow.org v. FEC.

Super PACs follow very different rules from traditional PACs:

They can raise unlimited amounts from individuals, corporations, unions, and other organizations
They can spend unlimited amounts on ads, mailers, and other political activity
They cannot donate directly to a candidate or coordinate with a candidate's campaign
All donors and spending must be publicly disclosed to the FEC

The key distinction: a super PAC can run a $50 million ad campaign supporting (or attacking) a candidate, but it's not allowed to work with that candidate on the messaging, timing, or strategy. That separation—called the "no coordination" rule—is central to the legal framework. It's also one of the most debated aspects of the system, which we'll get to.

PAC vs. Super PAC: What's the Difference?

	Traditional PAC	Super PAC
Contribution limits	$5,000/year per individual	No limits
Who can donate	Individuals (no corporate/union treasuries)	Individuals, corporations, unions, other groups
Can donate to candidates	Yes (up to $5,000 per election)	No
Can coordinate with campaigns	Yes	No
Spending limits	Limited (on direct contributions)	Unlimited (on independent spending)
Disclosure required	Yes	Yes

What About "Dark Money"?

You may also hear the term dark money. This refers to political spending by organizations that are not required to disclose their donors. Dark money doesn't come from PACs or super PACs directly (both must disclose). It typically flows through two types of tax-exempt organizations:

501(c)(4) Social Welfare Groups

Nonprofits organized under section 501(c)(4) of the tax code can engage in political activity as long as it's not their "primary purpose." They do not have to disclose their donors to the public. Examples have existed across the political spectrum, from Crossroads GPS (conservative) to Priorities USA (liberal).

501(c)(6) Trade Associations

Business leagues and trade associations (like the U.S. Chamber of Commerce) can also spend on political ads without disclosing individual donors. These groups represent industry interests and can run issue ads or direct advocacy.

Here's how it works: a donor gives money to a 501(c)(4), which doesn't disclose its donors. That group then donates to a super PAC. The super PAC discloses that the 501(c)(4) was its donor—but the original individual who funded the 501(c)(4) remains anonymous. This is what people mean by "dark money": the money is technically disclosed at one level, but the original source is hidden.

How Citizens United Changed the Landscape

The 2010 Supreme Court decision in Citizens United v. FEC is the single most important event in modern campaign finance. Here's what happened:

A nonprofit called Citizens United wanted to air a documentary critical of Hillary Clinton during the 2008 primary season. Federal law prohibited corporations and unions from spending on "electioneering communications" close to an election. Citizens United argued this violated the First Amendment.

The Supreme Court, in a 5–4 decision, agreed. The majority held that the First Amendment protects political speech regardless of whether the speaker is an individual, a corporation, or a union. The ruling didn't change contribution limits to candidates, but it removed limits on independent political spending by organizations.

The Two Sides of the Ruling

The majority opinion (Kennedy, writing for 5): "If the First Amendment has any force, it prohibits Congress from fining or jailing citizens, or associations of citizens, for simply engaging in political speech." The Court argued that restricting independent spending was a form of censorship and that transparency (disclosure) was a sufficient safeguard.

The dissent (Stevens, writing for 4): "A democracy cannot function effectively when its constituent members believe laws are being bought and sold." The dissent warned that unlimited corporate spending would create the appearance—or reality—of corruption and that the distinction between corporations and individuals was constitutionally meaningful.

In the years since, the amount of outside spending in elections has increased dramatically. According to OpenSecrets, outside spending in federal elections went from about $338 million in 2008 (pre-Citizens United) to over $2.6 billion in 2024.

What Does This Look Like in Practice?

If you've ever watched TV during election season and seen a political ad that ends with something like "Paid for by Americans for a Better Tomorrow" instead of a candidate's name, you've seen PAC and super PAC money at work.

Here's what the flow typically looks like:

A donor writes a check

This could be an individual, a corporation, or a union. The amount could be $50 or $50 million, depending on the type of organization receiving it.

The money goes to a PAC, super PAC, or dark money group

Each has different rules about how the money can be used and whether the donor's identity is public.

The organization spends the money

This might mean TV ads, digital campaigns, mailers, canvassing operations, or opposition research. Super PACs and dark money groups can't hand the money to a candidate—they spend it independently.

Voters see the result

The ad airs. The mailer arrives. The content influences how voters think about a candidate or issue—for better or worse.

How to Check for Yourself

Heard a claim that a candidate "took money" from a PAC or super PAC? Here's how to verify it using free, public FEC data:

Check the candidate's receipts

Go to FEC.gov → Candidates, search for the candidate, and browse their receipts. If a traditional PAC donated directly, it will appear here under "Other committee contributions."

Check independent expenditures

Can't find a PAC's name in the receipts? That might mean a super PAC spent money independently—supporting or attacking the candidate without giving to them directly. Check FEC.gov → Independent Expenditures and search by candidate name to see which outside groups spent on their behalf.

If it's not in either place, the claim may be false

If a group doesn't appear in the candidate's receipts or in the independent expenditures database, there's no FEC-reported financial connection. People sometimes confuse endorsements, policy alignment, or industry support with direct funding. The FEC data is the best way to separate fact from rumor.

Guide 11 of 22

Next up: Campaign Finance: The Big Picture — The scandals, the debate, and what reformers want to change.

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