Buckley v. Valeo (1976)

After the Watergate scandal exposed secret cash contributions, Congress amended the Federal Election Campaign Act in 1974 to limit contributions to candidates, cap campaign spending and independent expenditures, limit how much candidates could spend of their own money, require disclosure, create public financing for presidential campaigns, and establish the Federal Election Commission. A coalition led by Senator James Buckley of New York and former Senator Eugene McCarthy challenged the law as a violation of free speech.

On January 30, 1976, the Supreme Court issued a long unsigned opinion. It upheld contribution limits as a way to prevent corruption or its appearance, and upheld disclosure requirements and public financing. But it struck down limits on overall campaign spending, independent expenditures, and candidates' use of personal funds, reasoning that restricting the money spent on political communication restricts speech itself. It also held that Congress could not appoint FEC commissioners, so the agency was reconstituted with presidential appointees confirmed by the Senate.

The distinction between contributions, which may be limited, and expenditures, which may not, remains the foundation of campaign finance law. Later decisions built on it, including Citizens United v. FEC in 2010, McCutcheon v. FEC in 2014, and NRSC v. FEC in 2026. Supporters say Buckley rightly protected political speech, while critics argue that equating money with speech has allowed wealthy donors and outside groups to dominate elections.