More Congressional Hearings to Address Citizens United

The Senate Judiciary committee held a hearing tilted, "We the People? Corporate Spending in American Elections after Citizens United." During the hearing opponents of the ruling argued that the case exemplified that the Roberts Court has abandoned judicial restraint. Conversely, witness Bradley Smith, described the responses to the Citizens United decision as "hysteria." Smith also caused hysteria during the hearing when he referenced Vermont legislators as "freaking out" about the decision. This incited a heated exchange between Smith and Chairman Patrick Leahy (D-VT). Leahy interrupted Smith, disagreeing with the characterization of Vermont legislators.

Substantially, the panelists somewhat agreed that it will be very difficult to pass any major legislative changes. Any new campaign finance law is likely to face a legal challenge.

According to BNA Money and Politics ($$), Democratic senators maintained that the decision "represents a major boost to corporate influence in American politics, which is deeply unpopular with their constituents."

In addition, the House Financial Services subcommittee on Capital Markets, Insurance, and Government Sponsored Enterprises held a hearing which primarily focused on the issue of whether corporations should have to report their expenditures to shareholders. A member of the committee, Rep. Mike Capuano (D-MA), has introduced the Shareholder Protection Act of 2010, (H.R. 4790) requiring shareholder approval of corporate expenditures and boards of directors would have to vote on political spending over $50,000.

Again, any legislation is sure to face an uphill battle and possible future litigation. The expected measure from Sen. Chuck Schumer (D-NY) and Rep. Chris Van Hollen (D-MD) after the release last month of a summary of their proposals has yet to be introduced. CQ ($$) reports that the lawmakers are "sorting through the concerns of labor unions, nonprofit organizations and lawmakers as they try to write legislative language and line up cosponsors from both parties."

back to Blog