Final answer:
The Federal Campaign Act of 1974 had a significant impact on campaign finance in the United States. It introduced regulations to increase transparency and limit the influence of money in political campaigns. The Act created the FEC and required candidates to disclose the source of their funds.
Step-by-step explanation:
The Federal Campaign Act of 1974 had a significant impact on campaign finance in the United States. It introduced important regulations aimed at increasing transparency and limiting the influence of money in political campaigns. The Act created the Federal Election Commission (FEC) to oversee campaign contributions and interest group activity, and it required candidates to disclose the source of their funds.
Additionally, the Act banned the transfer of union, corporate, and trade association money to parties for distribution to campaigns. However, court decisions, such as Citizens United, have weakened certain sections of the campaign finance law, allowing businesses and organizations to run campaign ads and support candidates through the creation of super PACs.