Campaign Finance Reform: Why It Matters and How to Fix It

Campaign finance reform is one of the most urgent issues in American democracy today. Money has always played a role in politics, but in recent years, that role has grown into something far more dangerous.

The 2024 election cycle shattered records, with over $15.9 billion spent on federal campaigns alone. While that number may seem abstract, its impact is deeply personal. Big money influences who gets elected, whose voices are heard, and what policies take priority once the campaign signs come down.

At every level of government, from presidential races to local school board elections, unchecked political spending gives wealthy donors and special interest groups disproportionate power. Meanwhile, grassroots candidates and everyday voters are often left behind.

In this guide, we’ll break down the basics of campaign finance, explore the consequences of big money in politics, and highlight real solutions that are already working in communities across the country. 

Why Campaigns Cost So Much

Running for office in the United States is expensive. Oftentimes, it’s prohibitively expensive. 

Candidates at every level need to invest in things like:

• Advertising: Yard signs, TV spots, online video, social media promotions, and mailers

• Staff and Infrastructure: Hiring campaign managers, field organizers, and communications teams

• Events and Travel: Fundraising events, transportation, and canvassing efforts

• Technology: Data tools, texting platforms, and email marketing software

Even local campaigns can cost thousands of dollars, and state or federal races often run into the millions. For instance, the 2025 NYC mayoral primary candidates have already raised over $12 million as of May 2025. Candidates for California’s State Assembly in 2024 had to raise millions to fight back against opposition funding. Two candidates faced $2.4 million each in opposition funding from outside donors. 

The result? Running for office is becoming a financial barrier that shuts out many grassroots candidates from the start.

Most Americans can’t self-fund a competitive race. That’s why candidates turn to fundraising, and why campaign finance reform is crucial. When fundraising depends on large-dollar donors and hidden sources like Super PACs or 501(c)(4) “dark money” groups, candidates can become more accountable to funders than to voters.

The current system favors insiders with connections, money, or both. Without reform, it’s harder for new voices, Independent candidates, and community leaders to compete on a level playing field.

What’s the Problem With Big Donors?

Large political donations from billionaires and Super PACs skew representation. Instead of listening to the people, politicians often cater to those writing the biggest checks.

This can lead to:

• Tax breaks and loopholes for specific corporations

• Industry-friendly legislation written by lobbyists

• Exemptions from regulations that hurt everyday consumers

• Favorable treatment and unique access to people in power

The disproportionate influence of major donors directly leads to policy outcomes that favor the wealthy, potentially at the expense of broader public interests. This dynamic challenges the foundational democratic principle of equal representation and raises concerns about the integrity of the political system.

LEARN MORE: Explore who the donor class really is.

Campaign Contributions with Strings Attached

Here are some recent, high-profile examples of how campaign contributions have translated into political favors:

Elon Musk’s White House Access

Elon Musk committed over $70 million to support Donald Trump's campaign and other Republican candidates, making his PAC a significant player in the 2024 election cycle. And that funding continued into 2025. 

After contributing nearly $300 million to election efforts, Musk was granted substantial influence within the administration, including an office in the White House complex and occasional overnight stays in the Lincoln Bedroom. While he recently decided to step away from politics, that proximity allowed him to shape policies favoring deregulation and privatization, directly benefiting his business interests. 

The DeVos Family Privatizing Education

Former Education Secretary Betsy DeVos and the DeVos family are major proponents of school privatization. In Michigan, they donated over $4.4 million to Republican candidates and causes in 2024, with more than $1 million directed to state House and Senate Republican PACs. Their advocacy has led to Michigan having one of the highest concentrations of charter schools run by for-profit companies in the nation.

Lobbyists Legitimizing Legislation

Lobbying organizations spend billions every year to influence legislation. For instance, Meta spent over $24.4 million in lobbying on issues like law enforcement, homeland security, and computers and information technology. Similarly, the National Association of Realtors spent over $86 million lobbying for issues related to housing, insurance, and taxes. 

The Mercer Family Vying for Wealthy Tax Cuts

The Mercer Family Foundation, led by Rebekah Mercer, invested approximately $70 million into conservative causes between 2009 and 2014. Their funding has supported efforts to oppose increased IRS funding and promote tax policies favoring high-income individuals, thereby influencing national tax policy debates.

Charles Koch Cutting Regulation

Charles Koch, through his extensive network, has been instrumental in challenging federal regulations. His funding has supported efforts to bring cases before the Supreme Court aimed at limiting the power of federal agencies, potentially impacting environmental and labor protections.

These aren’t isolated incidents. They’re examples of how campaign contributions can directly shape policy and how everyday voters lose out in the process.

LEARN MORE: Learn the difference between soft money vs. hard money in campaign finance.

The American Public Wants Campaign Finance Reform

Despite the polarization in American politics, there’s one issue most people agree on: the system is broken, and big money is part of the problem.

Across party lines, voters overwhelmingly support campaign finance reform. They want a political system where elected officials serve their constituents, not their biggest donors. 

According to Pew Research:

• 85% of Americans say the high cost of campaigns makes it hard for good people to run for office.

• 84% think special interest groups have too much power.

• 83% of Republicans and 80% of Democrats say that people who write big checks for campaigns have an outsized amount of influence on congressional decision-making.

• 72% of Americans want limits on how much money individuals and organizations can pour into elections. 

When big money drives political decisions, it discourages participation. People feel like their vote doesn’t matter, and cynicism grows. Reform is key to restoring both fairness and trust in the system.

How We Got Here: The Citizens United Decision and Its Fallout

To move forward, we first have to look back at the single Supreme Court case that reshaped the political landscape: Citizens United v. Federal Election Commission.

In 2010, the U.S. Supreme Court ruled in Citizens United that corporations and unions could spend unlimited amounts of money on political advocacy, as long as it was done independently of a candidate’s campaign. The Court argued that this spending was a form of free speech protected by the First Amendment.

The decision didn’t just open the floodgates. It blew them wide open.

In the 15 years since Citizens United passed, we’ve seen an explosion of outside spending in elections. Super PACs and dark money groups have grown more powerful than ever. Unlike candidates, these groups can raise and spend unlimited funds, often without revealing where the money comes from or who it's meant to benefit.

The result? A system where:

• Billionaires can spend millions to sway key elections

• Corporations can quietly shape political outcomes behind closed doors

• Voters are often left in the dark about who’s really influencing their choices

Since Citizens United, outside groups have spent billions trying to influence federal elections. And because disclosure rules are weak and enforcement is limited, much of that spending happens with little public accountability.

Campaign finance reform is, in many ways, a response to this decision. It’s about restoring balance, putting voters back at the center of the process, and curbing the influence of the wealthiest few.

LEARN MORE: Understand the true implications of Citizens United. 

What Real Reform Looks Like: 5 Efforts for Campaign Finance Reform

When facing the wealthiest people on the planet, campaign finance reform can feel like a pipedream. But it’s already happening in cities and states across the country. Communities are banding together to reject the pay-to-play status quo and implement real solutions to reduce donor influence, increase transparency, and pave the way for more everyday Americans to run for office. 

Some of the most promising campaign finance reform efforts include: 

#1: Public Campaign Financing

One of the most powerful tools for leveling the playing field is public campaign financing. Instead of relying solely on wealthy donors, candidates can receive funding from the government, either through matching small donations or through grants, as long as they meet viability thresholds.

This gives candidates the freedom to focus on engaging with voters instead of dialing for dollars.

• New York City’s matching funds program provides a 6-to-1 match on small-dollar donations, helping grassroots candidates run competitive campaigns.

• Arizona and Maine have experimented with full public financing for state races, giving candidates a chance to run clean campaigns without courting big donors.

#2: Democracy Vouchers

Seattle’s democracy voucher program is one of the boldest experiments in campaign finance reform. Every resident receives four $25 vouchers that they can donate to local candidates of their choice.

Instead of restricting who can give, vouchers expand who can participate. It turns voters into donors and gives power back to the people.

Since launching in 2017, the program has increased both the number and diversity of contributors and encouraged candidates from outside the political establishment to run.

#3: Stronger Disclosure Laws

Big money is even more dangerous when it hides in the shadows. That’s why many reform efforts focus on transparency so voters know who’s paying for what.

Key reforms include:

• Requiring real-time disclosure of campaign contributions

• Closing loopholes for dark money groups

• Strengthening lobbying registration and reporting rules

In states like California and Washington, voters now have access to detailed donor databases and clearer disclosures on political ads, making it easier to follow the money.

#4: Local and State-Level Reforms

Some of the most innovative reforms are happening at the local level, where laws can move faster and have an immediate impact.

Cities like Denver, Portland, and Oakland have passed ambitious campaign finance laws that include:

• Contribution limits

• Public matching programs

• Bans on corporate donations

• Ethics commissions to enforce the rules

These local experiments are proving grounds for national solutions.

#5: Grassroots Oversight

You don’t always need legislation to shine a light on corruption. Watchdog groups and citizen researchers are digging through financial disclosures, tracking policy decisions, and blowing the whistle when officials betray the public interest.

Information is power, and sharing it helps protect democracy.

Why Campaign Finance Reform Matters for Independent Candidates

For non-partisan and Independent candidates, campaign finance is a structural barrier.

Without the backing of major political parties or access to wealthy donor networks, Independent candidates often face an uphill battle just to be heard. In a system designed around big money and insider connections, running for office without those advantages can feel impossible.

Here’s how the current system stacks the deck:

• Donors tend to play it safe, backing candidates they think can win, like incumbents or major-party favorites.

• Party-affiliated candidates get built-in fundraising support, infrastructure, and PAC access that Independents rarely have.

• Ballot access laws and filing fees add upfront costs that are hard to overcome without deep-pocketed donors.

Meanwhile, campaign costs continue to climb, even at the local level. That makes it harder for everyday people to step into leadership, no matter how qualified or community-rooted they are.

Campaign finance reform helps level that playing field. Public financing, small-dollar donation matching, and democracy vouchers open the door for more Independent candidates to run viable campaigns without compromising their values.

And voters are ready for it. A growing number of Americans, now over 40%, identify as political Independents. They’re hungry for new voices and fresh leadership. But without reform, too many great candidates are priced out before they even start.

That’s why GoodParty.org supports a people-powered political system where money doesn’t determine who gets to lead, and where Independents have a real shot at winning.

If you’re thinking about running, or know someone who should, now is the time.

Photo by Giorgio Trovato on Unsplash