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How Political Funding Works

PACs, Super PACs & lobby money explained.

American democracy runs on money. Understanding where it comes from, how it flows, and who it serves is essential for evaluating the actions of every elected official. This guide breaks down the funding mechanisms that shape American politics.

What Is a PAC?

A Political Action Committee (PAC) is an organization that raises and spends money to elect or defeat political candidates. PACs have existed since the 1940s and are one of the primary vehicles through which organized interests — corporations, unions, industry groups, and ideological organizations — funnel money into the political system.

Traditional PACs operate under contribution limits. They can accept up to $5,000 per year from individual donors and can contribute up to $5,000 per candidate per election. They must register with the Federal Election Commission (FEC) and publicly disclose their donors and expenditures.

What PACs Can Do

  • Donate directly to candidate campaigns (within limits)
  • Bundle individual donations to amplify funding power
  • Contribute to political party committees
  • Run issue ads and voter mobilization

Limitations

  • $5,000 max per individual donor per year
  • $5,000 max per candidate per election
  • Must disclose all donors and spending to FEC
  • Cannot accept corporate or union treasury funds directly

What Is a Super PAC?

A Super PAC (formally an "independent expenditure-only committee") is a type of political action committee that can raise and spend unlimited amounts of money. Super PACs were created in the wake of the 2010 Citizens United v. FEC Supreme Court decision, which held that political spending is a form of protected speech.

Unlike traditional PACs, Super PACs cannot donate directly to candidates or coordinate with campaigns. In practice, however, the line between "independent" spending and campaign coordination is thin and difficult to enforce. Former campaign staffers routinely run Super PACs supporting their former employers, and the FEC has limited resources to investigate coordination claims.

Super PACs have fundamentally transformed American elections. In recent cycles, Super PACs have collectively spent billions of dollars — often funded by a small number of ultra-wealthy donors. A single billionaire can write a $50 million check to a Super PAC and single-handedly fund an entire congressional campaign's advertising.

The Citizens United Effect

Before Citizens United (2010), corporate and union spending on elections was restricted. After the ruling, outside spending exploded. In the 2008 election (pre-Citizens United), outside groups spent approximately $338 million. By 2020, that figure exceeded $3.4 billion — a tenfold increase in a decade.

Source: Federal Election Commission, OpenSecrets.org

How Lobbying Works in Congress

Lobbying is the practice of attempting to influence government officials on behalf of a particular interest. It is a multi-billion dollar industry in the United States, with thousands of registered lobbyists operating in Washington, D.C. alone.

Lobbyists meet with members of Congress and their staff, testify at committee hearings, draft legislation, organize campaign fundraisers, and provide the research and talking points that lawmakers use in debates and votes. Many lobbyists are former members of Congress or senior congressional staff — a practice known as the "revolving door" between government and industry.

While lobbyists must register with Congress and disclose their clients and spending, enforcement is limited. Many activities that function as lobbying — strategic consulting, public affairs, government relations — are structured to avoid the legal definition, meaning the true scale of influence-peddling is significantly larger than reported numbers suggest.

Top Lobbying Sectors

  • Pharmaceuticals & Health
  • Technology & Internet
  • Insurance & Finance
  • Energy & Fossil Fuels
  • Defense & Aerospace

How Lobbyists Operate

  • Direct meetings with lawmakers
  • Drafting legislation language
  • Organizing fundraising events
  • Providing research & data
  • Building political coalitions

The Revolving Door

  • Ex-lawmakers become lobbyists
  • Ex-staffers leverage access
  • Regulators join industries they regulated
  • Knowledge of internal processes
  • Personal relationships with officials

What Is AIPAC?

The American Israel Public Affairs Committee (AIPAC) is one of the most influential lobbying organizations in American politics. Founded in 1963, AIPAC describes itself as a bipartisan organization that advocates for a strong U.S.-Israel relationship. Its political influence operates through multiple channels.

AIPAC (the lobbying organization) does not make direct campaign contributions. Instead, it lobbies Congress directly — organizing meetings between lawmakers and Israeli officials, hosting its annual policy conference (attended by the majority of Congress), and mobilizing its membership to contact representatives on legislation affecting Israel.

AIPAC PAC is a traditional PAC that bundles individual contributions from thousands of donors to support pro-Israel candidates. It has become one of the largest PACs in American politics by donation volume.

United Democracy Project (UDP) is AIPAC's affiliated Super PAC, created in 2021. With no contribution limits, UDP has spent tens of millions in individual congressional races — often making it the single largest outside spender in those contests. In the 2024 election cycle, AIPAC-affiliated entities collectively spent over $100 million, according to FEC filings.

AIPAC's political influence is notable for several reasons: its bipartisan reach (it funds both Democrats and Republicans), its willingness to spend heavily in primary elections to defeat candidates it opposes, and the scale of its political spending relative to other single-issue lobbying organizations.

AIPAC's Political Network

  • AIPAC — Lobbying organization (no direct contributions)
  • AIPAC PAC — Traditional PAC, bundles individual donor contributions
  • United Democracy Project — Super PAC, unlimited spending

Key Facts (FEC Records)

  • Bipartisan: funds both Democrat and Republican candidates
  • Heavy primary spending against candidates it opposes
  • Among the largest outside spenders in congressional races
  • Annual policy conference attended by majority of Congress

All figures based on publicly available Federal Election Commission filings and OpenSecrets.org data.

How to Follow the Money

Campaign finance data is public record. Here are the tools you need to trace the money behind any elected official.

Gen Us Politician Tracker

We track all 535 members of Congress — their lobby funding, AIPAC contributions, voting records, and financial connections. All in one place, updated regularly.

View the Tracker

Federal Election Commission (FEC)

The official government database of all reported campaign contributions and expenditures for federal candidates. Searchable by candidate, donor, or committee.

fec.gov

OpenSecrets

Tracks lobbying spending, campaign contributions by industry and organization, and the revolving door between government and private sector.

opensecrets.org

Remember: Every dollar in politics is a transaction. When you see a member of Congress vote a certain way, check who funded their campaign. The correlation between funding sources and voting patterns is not a coincidence — it is the system working as designed.

Further Reading