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Money and Politics: The Law and its Impact

Aired September 08, 2003 - 15:26   ET

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.

THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.


JUDY WOODRUFF, CNN ANCHOR: Well, I'm here at the Supreme Court, as we've been telling you for the last half hour. And to tell you, too, that today's legal showdown over the campaign finance reform law overshadows a political irony. In the battle for political donations, those who fought the hardest to change the rules are being hurt the most.
(BEGIN VIDEOTAPE)

WOODRUFF (voice-over): He didn't really want to do it, but in spring of 2003, as Enron highlighted the nexus of big money and big politics, George W. Bush bowed to public pressure and signed landmark campaign finance legislation. Democrats cheered.

SEN. RUSSELL FEINGOLD (D), WISCONSIN: I think it was starting to feel like what it must have felt like in the waning days at Enron, to be part of a system that was obviously wrong and immoral.

WOODRUFF: But who's sorry now? The McCain-Feingold law has walloped the Democrats. It bans political parties from raising and spending so-called soft money, unlimited contributions mostly from unions, corporations, and wealthy individuals. The goal: to diminish the role of money in campaigns.

SEN. JOHN MCCAIN (R), ARIZONA: This statute closed loopholes in existing laws through which we're pouring millions of dollars in soft money that have such potential to corrupt or appear to corrupt the workings of government and undermine Americans faith and the integrity of their elected officials.

WOODRUFF: Now, Democrats find them themselves at a new disadvantage. The DNC has traditionally raised more soft money than hard, relying on powerful large donors, like unions. Republicans, with their larger base of individual contributors, have led the hard money race. Under the new rules, that contrast is stark.

The RNC pulled in $55 million in the first six months of 2003. The DNC raised just $18 million. Ironically, Republicans are leading the fight to take down McCain-Feingold.

SEN. MITCH MCCONNELL (R), KENTUCKY: We waged this constitutional battle to protect for all Americans the freedom to speak out freely on issues and elections.

WOODRUFF: Another provision before the court, commercials like this one.

ANNOUNCER: By favoring the few, George W. Bush would hurt the many.

WOODRUFF: Issue ads sponsored by unions, parties and other groups face new restrictions under McCain-Feingold. Spots mentioning candidates by name can't go up around election time. For free speech purists, it's another cause for concern.

(END VIDEOTAPE)

WOODRUFF: Well the rare September session in the Supreme Court right behind me is wrapping up in just a few minutes. I'll have much more in the campaign finance clash coming up at the top of the hour when I go "INSIDE POLITICS."

Among my guests will be Senator John McCain, who helped right the law, and Senator Mitch McConnell, who is, as you know, a very vocal opponent of campaign finance reform. I'll see you then.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com






Aired September 8, 2003 - 15:26   ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
JUDY WOODRUFF, CNN ANCHOR: Well, I'm here at the Supreme Court, as we've been telling you for the last half hour. And to tell you, too, that today's legal showdown over the campaign finance reform law overshadows a political irony. In the battle for political donations, those who fought the hardest to change the rules are being hurt the most.
(BEGIN VIDEOTAPE)

WOODRUFF (voice-over): He didn't really want to do it, but in spring of 2003, as Enron highlighted the nexus of big money and big politics, George W. Bush bowed to public pressure and signed landmark campaign finance legislation. Democrats cheered.

SEN. RUSSELL FEINGOLD (D), WISCONSIN: I think it was starting to feel like what it must have felt like in the waning days at Enron, to be part of a system that was obviously wrong and immoral.

WOODRUFF: But who's sorry now? The McCain-Feingold law has walloped the Democrats. It bans political parties from raising and spending so-called soft money, unlimited contributions mostly from unions, corporations, and wealthy individuals. The goal: to diminish the role of money in campaigns.

SEN. JOHN MCCAIN (R), ARIZONA: This statute closed loopholes in existing laws through which we're pouring millions of dollars in soft money that have such potential to corrupt or appear to corrupt the workings of government and undermine Americans faith and the integrity of their elected officials.

WOODRUFF: Now, Democrats find them themselves at a new disadvantage. The DNC has traditionally raised more soft money than hard, relying on powerful large donors, like unions. Republicans, with their larger base of individual contributors, have led the hard money race. Under the new rules, that contrast is stark.

The RNC pulled in $55 million in the first six months of 2003. The DNC raised just $18 million. Ironically, Republicans are leading the fight to take down McCain-Feingold.

SEN. MITCH MCCONNELL (R), KENTUCKY: We waged this constitutional battle to protect for all Americans the freedom to speak out freely on issues and elections.

WOODRUFF: Another provision before the court, commercials like this one.

ANNOUNCER: By favoring the few, George W. Bush would hurt the many.

WOODRUFF: Issue ads sponsored by unions, parties and other groups face new restrictions under McCain-Feingold. Spots mentioning candidates by name can't go up around election time. For free speech purists, it's another cause for concern.

(END VIDEOTAPE)

WOODRUFF: Well the rare September session in the Supreme Court right behind me is wrapping up in just a few minutes. I'll have much more in the campaign finance clash coming up at the top of the hour when I go "INSIDE POLITICS."

Among my guests will be Senator John McCain, who helped right the law, and Senator Mitch McConnell, who is, as you know, a very vocal opponent of campaign finance reform. I'll see you then.

TO ORDER A VIDEO OF THIS TRANSCRIPT, PLEASE CALL 800-CNN-NEWS OR USE OUR SECURE ONLINE ORDER FORM LOCATED AT www.fdch.com