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Federal regulations restricting how non-profit groups spend and raise money to advance policy positions and support political candidates violate free-speech rights, a US appeals court ruled on Friday. The ruling striking down the regulations was a victory for EMILY's List, a non-profit group that advocates abortion rights and supports Democratic female candidates who support such rights, though the decision could be appealed to the US Supreme Court.
The group had challenged the regulations adopted in 2004 by the Federal Election Commission, the agency in charge of campaign finance rules for congressional and presidential elections. The decision was a setback for supporters of federal campaign finance rules who say they are necessary to deter corruption in politics.
Many non-profit activist groups devoted to a wide range of causes raise money and spend it to back specific candidates or promote particular issues. The ruling could heighten the importance of these groups in political campaigns.
Another free-speech challenge is pending before the Supreme Court, which heard arguments earlier this month on corporate spending limits in US political campaigns. The high court's conservative majority appeared concerned that the restrictions may be too broad and silence free-speech rights of businesses.
That case involved a challenge to a key part of the 2002 campaign finance law named after Senator John McCain, the unsuccessful Republican presidential nominee in 2008, and Democratic Senator Russell Feingold. In the case before the appeals court, the commission had put limits on how much non-profit groups could raise and spend.

Copyright Reuters, 2009

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