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AGENCY:

Federal Election Commission.

ACTION:

Notice of expenditure and contribution limitation increases.

SUMMARY:

As mandated by provisions of the Bipartisan Campaign Reform Act of 2002 (“BCRA”), the Federal Election Commission (“FEC” or “the Commission”) is adjusting certain expenditure and contribution limitations set forth in the Federal Election Campaign Act of 1971, as amended (“FECA” or “the Act”), to account for increases in the consumer price index.

Additional details appear in the supplemental information that follows.

EFFECTIVE DATE:

The effective date for the limits at 2 U.S.C. 441a(a)(1)(A), 441a(a)(1)(B) and 441a(h) is November 3, 2004. The effective date for the limits at 2 U.S.C. 441a(a)(3) and 441a(d) is January 1, 2005.

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FOR FURTHER INFORMATION CONTACT:

Mr. Gregory J. Scott, Information Division, 999 E Street, NW., Washington, DC 20463; Telephone: (202) 694-1100; Toll Free (800) 424-9530.

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SUPPLEMENTARY INFORMATION:

Under the Federal Election Campaign Act of 1971, 2 U.S.C. 431 et seq., as amended by the Bipartisan Campaign Reform Act of 2002, Public Law 107-155, 116 Stat. 81 (March 27, 2002), coordinated party expenditure limits (2 U.S.C. 441a(d)(3)(A) and (B)), and certain contribution limits (2 U.S.C. 441a(a)(1)(A) and (B), (a)(3), (d) and (h)), Start Printed Page 7110are adjusted either annually or biennially by the consumer price index. See 2 U.S.C. 441a(c)(1). The Commission is publishing this notice to announce these limits for 2005 or the 2005-2006 election cycle.

Coordinated Party Expenditure Limits for 2005

Under 2 U.S.C. 441a(c), the Commission must adjust the expenditure limitations established by 2 U.S.C. 441a(d) (the limits on expenditures by national party committees, State party committees, or their subordinate committees in connection with the general election campaign of candidates for Federal office) annually to account for inflation. This expenditure limitation is increased by the percent difference between the price index, as certified to the Commission by the Secretary of Labor, for the 12 months preceding the beginning of the calendar year and the price index for the base period (calendar year 1974).

1. Expenditure Limitation for House of Representatives

Both the national and state party committees have an expenditure limitation for each general election held to fill a seat in the House of Representatives. The formula used to calculate the expenditure limitation in a state with more than one congressional district multiplies the base figure of $10,000 by the price index (3.831), rounding to the nearest $100. Based upon this formula, the expenditure limitation for 2005 House elections in those states is $38,300. The formula used to calculate the expenditure limitation in a state with only one congressional district multiplies the base figure of $20,000 by the price index (3.831), rounding to the nearest $100. Based upon this formula, the expenditure limitation for 2005 House elections in these states is $76,600.

2. Expenditure Limitation for Senate

Both the national and state party committees have an expenditure limitation for a general election held to fill a seat in the Senate. The formula used to calculate the Senate expenditure limitation considers not only the price index but also the voting age population (“VAP”) of the state. The expenditure limitation is the greater of: the base figure ($20,000) multiplied by the price index (which totals $76,600); or $0.02 multiplied by the VAP of the state, multiplied by the price index. Amounts are rounded to the nearest $100. The chart below provides the state-by-state breakdown of the 2005 expenditure limitations for Senate elections.

Contribution Limitation Increases for Individuals, Nonmulticandidate Committees and for Certain Political Party Committees Giving to U.S. Senate Candidates for 2005-2006 Election Cycle

BCRA amended the Act to extend inflation indexing to: (1) The limitations on contributions made by persons under 2 U.S.C. 441a(a)(1)(A) (contributions to candidates) and 441a(a)(1)(B) (contributions to national party committees); (2) the biennial aggregate contribution limits applicable to individuals under 2 U.S.C. 441a(a)(3); and (3) the limitation on contributions made to U.S. Senate candidates by certain political party committees at 2 U.S.C. 441a(h). 2 U.S.C. 441a(c). These contribution limitations are increased by multiplying the respective statutory contribution amount by the percent difference between the price index, as certified to the Commission by the Secretary of Labor, for the 12 months preceding the beginning of the calendar year and the price index for the base period (calendar year 2001). The resulting amount is rounded to the nearest multiple of $100. The Commission has calculated the applicable percent difference to be 6.7 percent.

Contribution limitations shall be adjusted accordingly:

Under the Act, the inflationary adjustments are to be made only in odd-numbered years and the increased limitations at 2 U.S.C. 441a(a)(1)(A), 441a(a)(1)(B) and 441a(h) are to be in effect for the 2-year period beginning on the first day following the date of the general election in the preceding year and ending on the date of the next regularly scheduled election. Thus the respective figures above are in effect from November 3, 2004 to November 7, 2006. The limitation under 2 U.S.C. 441a(a)(3)(A) and (B) shall be in effect beginning January 1st of the odd-numbered year and ending on December 31st of the next even-numbered year. Thus the new contribution limits under 2 U.S.C. 441a(a)(3)(A) and (B) are in effect from January 1, 2005 to December 31, 2006.

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