Senate agrees to higher 'hard money' contribution limits

Arizona Senator McCain

From CNN correspondents Kelly Wallace and Bob Franken

WASHINGTON (CNN) -- One day after blocking an attempt to lift restrictions on indirect contributions to candidates, the Senate voted Wednesday to amend the pending campaign finance overhaul bill to raise the limits on direct contributions.

On a 84-16 vote, the chamber agreed to amend the bill to raise so-called "hard money" contributions to candidates from the current limit of $1,000 per year to a new limit of $2,000. In addition, the chamber raised the annual individual contribution limits from $25,000 to $37,500 overall for candidates and political parties for use in direct campaign expenses. It is the first increase of the limits since they were enacted in the post-Watergate era 27 years ago.

VIDEO CNN's Jonathan Karl reports on how the vote may affect passage of the McCain-Feingold bill Play video (QuickTime, Real or Windows Media)     MESSAGE BOARD Campaign finance reform

The vote cleared a major concern holding up potential passage of the measure, backed by Sen. John McCain, R-Arizona, and Sen. Russ Feingold, D-Wisconsin.

"Money is not evil in and of itself," said Sen. Fred Thompson, R-Tennessee, sponsor of the amendment.

Tuesday, the Senate rejected a challenge to the McCain-Feingold provision that would ban "soft money" -- currently unregulated contributions that go to political parties instead of individual candidates. The Senate by at 60-40 vote rejected an amendment that would have allowed soft money contributions up to $60,000.

President Bush supports banning soft money contributions by corporations and unions, but has been opposed to placing a ban on contributions by individuals.

However, White House Press Secretary Ari Fleischer said Wednesday that lawmakers should not try to predict how Bush will handle the bill when it is finished.

"Members of Congress can't expect him to veto campaign finance reform" based on the limit on individual soft money contributions "because he wants to reform the current system," Fleischer said.

Fleischer said Bush will monitor what Congress does before the president makes a decision.

Hagel's 'soft money' limits fall in Senate
March 27, 2001
Senate OKs 'real setback' to McCain-Feingold bill
March 26, 2001
Senate OKs first change in campaign finance bill
March 20, 2001

Sen. John McCain, R-Arizona
Sen. Russ Feingold, D-Wisconsin
Sen. Chuck Hagel, R-Nebraska
The White House

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