Citizens United v. FEC (2010)

The Bipartisan Campaign Reform Act of 2002 barred corporations and unions from using their general treasuries for electioneering communications, broadcast ads naming a federal candidate shortly before an election. In 2008 Citizens United, a conservative nonprofit, wanted to air and promote a documentary critical of a presidential candidate, Hillary: The Movie, during the primary season. Fearing penalties, it sued the Federal Election Commission.

After reargument, the Supreme Court ruled 5 to 4 on January 21, 2010, in an opinion by Justice Anthony Kennedy, that the ban on independent political spending by corporations and unions violated the First Amendment. The Court overruled Austin v. Michigan Chamber of Commerce from 1990 and part of McConnell v. FEC from 2003, reasoning that independent expenditures do not give rise to corruption or its appearance. By 8 to 1 it upheld disclosure and disclaimer requirements. Justice John Paul Stevens, dissenting, warned that the ruling would undermine the integrity of elected institutions.

Two months later, in SpeechNow.org v. FEC, a federal appeals court applied the reasoning to strike limits on contributions to groups that spend only independently, creating super PACs. Outside spending in federal elections rose sharply in the following cycles, including through nonprofits that do not disclose donors. Supporters say the ruling protects political speech by groups of citizens, while critics argue it gave corporations and wealthy donors outsized influence, and proposals for a constitutional amendment to overturn it have been introduced in every Congress since.