Can corporations and unions use their own money to influence elections?

Citizens United v. Federal Election Commission | US government and civics | Khan Academy · 19:15 · Video: Khan Academy · Watch at the source

In short: In 2010, a landmark Supreme Court ruling fundamentally altered American politics by declaring that corporate and union spending on political advertising is a protected form of free speech under the First Amendment, sparking intense debate over the influence of special interests in democratic elections.

The controversy began when the conservative nonprofit Citizens United released a documentary in 2008 titled "Hillary: The Movie," which was highly critical of Senator Hillary Rodham Clinton. The organization intended to distribute the film via video-on-demand and run television commercials shortly before the Democratic primary elections. However, existing laws, specifically the Bipartisan Campaign Reform Act of 2002 (BCRA), prohibited corporations and unions from using general treasury funds for such "electioneering communications"—defined as speech advocating for or against a candidate within a specific window before an election.

In a sharply divided 5–4 decision on January 21, 2010, the Supreme Court invalidated these restrictions. Writing for the majority, Justice Anthony Kennedy argued that because the laws targeted political speech, they had to meet the highest legal standard, known as strict scrutiny. The Court ruled that the First Amendment protects political expression regardless of whether the speaker is an individual or a corporation, thereby striking down parts of the BCRA and the Federal Election Campaign Act of 1971 (FECA). This ruling also overturned previous precedents, including the 1990 Austin v. Michigan Chamber of Commerce and the 2003 McConnell v. Federal Election Commission decisions.

The ruling remains deeply polarizing. Supporters view it as a vital victory for the First Amendment and freedom of expression. Critics, including President Barack Obama, warned that the decision would allow special interests to spend unlimited amounts of money in elections. While the Court struck down the ban on independent expenditures, it did uphold requirements for disclaimers and disclosures regarding political advertising.

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