In a decision Monday that liberal Justice Elena Kagan warned will further corrupt the nation’s money-dominated political system, the U.S. Supreme Court’s right-wing majority struck down a campaign finance regulation limiting federal candidates’ ability to use campaign funds to repay personal loans.
Established by the Bipartisan Campaign Reform Act of 2002, the rule barred candidates from using more than $250,000 in campaign funds collected after an election to recoup their loans to their own campaign.
“When they give money to repay the victor’s loan, they know he will be in a position to perform official favors.”
The legal challenge to the cap was brought by Sen. Ted Cruz (R-Texas), who intentionally violated the $250,000 cap during his 2018 reelection bid in order to pursue a repeal of the limit, which he characterized as a violation of free speech.
As CNN explained:
A day before he was reelected in 2018, Cruz loaned his campaign committee $260,000, $10,000 over the limit—laying the foundation for his legal challenge to the cap… [H]e could have been repaid in full by campaign […]