The Federal Election Commission yesterday set in motion regulatory proceedings that could severely restrict new pro-Democratic groups seeking to defeat President Bush.
The proposed regulations, drafted by the agency's general counsel, would severely crimp the fundraising and spending activities of "527" groups, named for the section of the tax code that governs their activities. But advocates of the tough regulations suffered a setback when a Democratic commissioner in a position to cast the key swing vote said she is likely to oppose any changes in the rules that would take effect before the November elections.
The FEC, normally a backwater among Washington agencies, has become a battlefield pitting a flush Republican Party and a Bush campaign with a $100 million-plus war chest against a Democratic Party suffering from a 2 to 1 financial disadvantage. The Republican National Committee, joined by a number of campaign watchdog groups, is pressing the six-member commission to rule that a network of pro-Democratic organizations with a plan to spend as much as $300 million this year, most of it "soft money," is breaking the law.
These groups, collectively functioning as a "shadow" Democratic Party, are a key part of a Democratic presidential campaign strategy that seeks to fill the vacuum created by a new ban on the raising of large soft-money contributions from unions, corporations and rich people imposed by the McCain-Feingold campaign finance law.
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http://www.washingtonpost.com/wp-dyn/articles/A31690-2004Mar4.html