What is soft money in political campaigning?

Soft money refers to campaign contributions that are not regulated by federal law, particularly those that are used for activities like party-building and grassroots efforts rather than directly supporting a specific candidate's campaign. This type of funding became prominent in the United States as the laws around campaign finance evolved, allowing parties to raise unlimited sums of money for these purposes before stricter regulations were introduced through legislation such as the Bipartisan Campaign Reform Act of 2002.

The significance of soft money lies in its potential to influence elections without the same level of oversight as hard money contributions, which are strictly regulated and limited in amount. This distinction highlights the ongoing debates about funding in political campaigns and the levels of transparency and accountability required in the process. Understanding soft money is crucial in the context of political fundraising and the role of political parties in elections.