The Federal Election Commission (the “FEC”) has announced increased contribution limits that apply to federal political recipients for the 2019-2020 federal election cycle. 

Under the new limits, individuals may now contribute up to $2,800 per election to a federal candidate committee and up to $35,500 per calendar year to a national political party committee. The contribution limits for these recipients are adjusted for inflation in odd-numbered years.

In contrast, the contribution limits for federal PACs ($5,000 per calendar year) and to federal state/district/local political party committees ($10,000 per calendar year combined) are not adjusted for inflation, and thus the previous limits remain in effect.

Please note that the FEC’s increased contribution limits have no effect on the contribution limits in effect for state and local candidates. For example, while a bill under consideration in the New Jersey Senate would increase the contribution limit for a New Jersey non-gubernatorial political candidate (from $2,600 to $3,000 per election) New Jersey’s limits are generally not indexed for inflation and thus have not seen regular adjustments over the years.

As the 2020 presidential election gears up, now is the time to understand both how individuals may contribute to federal campaigns and what rules govern a business entity’s participation in the political process.