Final answer:
Political campaign donations are regulated through acts like the Federal Election Campaign Act, which set limits and required disclosure. The Supreme Court has ruled that spending money is a form of free speech, but limitations can be imposed. The federal government has tried to limit spending through voluntary financing deals and spending limits.
Step-by-step explanation:
Political campaign donations are regulated in the United States to ensure transparency and prevent corruption. The Federal Election Campaign Act, passed in 1971 and amended in 1974, set limits on donations to campaigns and required disclosure of contributions. The act also banned the transfer of certain types of money to parties for campaign distribution.
The issue of campaign donations and spending is often debated in relation to the First Amendment right to free speech. The Supreme Court has ruled that spending money is a form of exercising free speech, but limitations can be imposed. In the Buckley v. Valeo (1976) case, the Court upheld restrictions on contributions to campaigns and candidates, while overturning restrictions on expenditures by candidates and campaigns.
The federal government has tried to limit campaign spending through voluntary public financing deals and spending limits. Candidates can choose to abide by these limits, but the government cannot forbid people or organizations from raising and spending money above these limits if they choose. However, regulations have been weakened by Supreme Court decisions like Citizens United.