Final answer:
Congressional Campaign Committees are vital to financing candidates in U.S. elections, operating under FEC regulations. Interest groups fund candidates through PACs, which are heavily regulated, but reforms like the McCain-Feingold Act face challenges with the rise of super PACs that can circumvent some limitations.
Step-by-step explanation:
Congressional Campaign Committees are essential players in the realm of United States political finance. These committees are tied to the major political parties and are responsible for raising significant amounts of money to support the campaigns of candidates for Congress. Under the Federal Election Commission (FEC), which was established by the Federal Elections Campaign Act (FECA), these committees must report their campaign contributions and expenditures during each election cycle.
A Political Action Committee (PAC), as defined by the FEC, is a tool for interest groups to fund candidates. PACs contribute a considerable sum to candidates, particularly to incumbents who hold powerful positions on congressional committees relevant to the PACs' interests. For example, the Enron scandal showed how candidates on committees could receive substantial contributions from companies they are set to investigate.
The Bipartisan Campaign Reform Act of 2002, also known as the McCain-Feingold Act, attempted to curb the influence of campaign finance by setting limits on 'soft money' and the coordination between candidates and PACs. Despite these efforts, the rise of super PACs has made it easier to sidestep certain regulations, allowing these entities to raise unlimited funds as long as they do not coordinate directly with candidates' campaigns.