A 1975 Supreme Court ruling, Buckley v. Valeo, dismantled key provisions of the post‑Watergate campaign finance law, permitting unlimited independent spending by wealthy donors. The decision left intact public financing and the FEC but stripped contribution caps, laying the legal foundation for today’s multi‑hundred‑million‑dollar election outlays.

In the 2024 presidential cycle, six billionaires each poured over $100 million into independent expenditures supporting former president Donald Trump, dwarfing the sums raised by the candidates’ own committees. The Koch brothers network accounted for 19 % of all federal contributions, illustrating how the Buckley precedent enabled a handful of donors to dominate campaign financing.

Archival research shows that the legal assault on the 1974 Federal Election Campaign Act was financed by a coalition of right‑wing activists, libertarians and even some liberal groups, with the Ford administration covertly backing the challenge. The resulting framework has turned campaign spending into a lucrative market, allowing a single donor to sway national elections with unprecedented financial firepower.

The modern finance structure fuels political risk for corporations, as policy swings can follow the whims of a few mega‑donors. Investors watch donor disclosures to gauge regulatory exposure, while lobbyists price access to candidates who owe their campaigns to the same cash streams. Ultimately, Buckley v. Valeo reshaped the economics of American politics into a high‑stakes marketplace.