Final answer:
The BCRA was enacted in 2002 to regulate campaign financing by restricting soft money and enforcing better disclosure. It limited coordination between candidates and PACs and placed restrictions on pre-election political ads. However, the Supreme Court later struck down some of its provisions for violating free speech rights.
Step-by-step explanation:
The Bipartisan Campaign Reform Act (BCRA), also known as McCain-Feingold Act, was needed in 2002 to address the growing issue of unregulated campaign financing, particularly concerning 'soft money.' This type of funding, intended for political parties' general activities, was not subjected to the strict rules that direct contributions to candidates ('hard money') faced. The BCRA aimed to curb the influence of wealth on politics by limiting the use of soft money, banning the coordination between candidates and Political Action Committees (PACs), and restricting political advertisements by unions and corporations before elections.
The law was also designed to require full disclosure of campaign contributors and included provisions for candidates to personally endorse their political ads. However, its enforcement led to controversial court cases, specifically the Supreme Court's decision in Citizens United v. Federal Election Commission in 2010, which struck down the spending limits on corporations, citing First Amendment rights.