Indiana Libertarian Party Challenges FEC

The Libertarian Party of Indiana has filed a lawsuit against the Federal Elections Commission. The plaintiffs are suing the government so that they can create an expenditure-only account for party branding and non-government support.

The McCain-Feingold Act prevents parties from creating such accounts, and limited the amount any party can raise or spend to support those seeking office.

Dan Drexler, State Chairman of the LPIN, said, “When the legislation passed in 2002, it was intended to keep soft money and foreign influence out of our federal elections. However, the result has been more money entering into our elections through non-party channels, [and] less transparency in reporting that money.”

Drexler claims the campaign finance laws prevent smaller parties like his from being heard in elections.

Courts have recently struck down many donation limits to candidates. However, most restrictions on contributions to political parties have remained in place. This suit would strike down such limits. This would allow unlimited funding of political parties, in much the same way Super PAC’s are now organized. Just one of those groups, ActBlue, donated over 100 million dollars, 99 percent of which went to Democrats.

If the suit is successful, it could open up new sources of funding for small parties like the Indiana Libertarian Party. It could also flood Democratic and Republican coffers with new levels of funding.

The national Republican Party has also filed a lawsuit against the Federal Elections Commission, seeking a similar overturn of limits on such donations. Current laws prevent parties from accepting contributions over $32,500. New York state recently removed such limits for statewide parties.