In the context of United States campaign finance regulations, certain contributions are subject to legal limits and restrictions. These funds, often referred to as “hard money,” adhere strictly to federal regulations stipulated by the Federal Election Commission (FEC). Specifically, these contributions are given directly to a candidate’s campaign or a political party. For example, an individual donating directly to a candidate for the House of Representatives, with the contribution falling within the legally defined limit per election cycle, constitutes this type of regulated funding.
The significance of this regulated funding stems from its transparency and accountability. Because these contributions are subject to stringent disclosure requirements, the public can readily access information regarding who is donating to which candidates and parties. Historically, regulations governing these funds were designed to prevent corruption and undue influence within the political process. By placing limits on individual and organizational contributions, the intent is to level the playing field and ensure that campaigns are not solely reliant on large donors.