Final answer:
The amount of soft money a person can give to political parties is not regulated, allowing for unlimited contributions that do not directly support individual candidates' campaigns. This type of funding is utilized for broader party initiatives and has been a point of contention in campaign finance reform efforts.
Step-by-step explanation:
The amount of soft money a person may give to political parties is not regulated by the FEC, since the money does not go to a specific candidate. Soft money refers to contributions to political parties for party-building activities like advertising, administrative costs, or get-out-the-vote campaigns, rather than direct support to individual candidates' campaigns. While certain limits apply to direct contributions to candidates and specific party committees, these do not extend to soft money.
For example, under current regulations, individuals may donate up to $2,900 to a particular candidate per election, $5,000 to a PAC, and $36,500 to a national party committee. However, when it comes to soft money, there is no federal ceiling on the amount one can contribute. This has been a contentious issue in U.S. politics as it creates potential for significant influence by wealthy individuals and organizations.
The use of soft money grew after the Supreme Court decisions in Buckley v. Valeo and Citizens United v. Federal Election Commission, which allowed for greater political spending on the premise of protecting freedom of speech. The Bipartisan Campaign Reform Act of 2002, known as McCain-Feingold, attempted to limit the influence of soft money but has been subject to various legal challenges and loopholes.