H.R. 1338 aims to limit the ability of banks, corporations, and PACs to donate large sums of money to election campaigns. Specifically, it bans “independent expenditures,” money set aside by a group (like a Super PAC) or an individual for advertisements that express support or opposition to a candidate.
The bill also amends election law so that organizations making “electioneering communications” — essentially, campaign advertisements — are treated like the entities from which they receive money. That is to say, if a PAC receives money from a bank, they’ll be treated like a bank. Banks aren’t allowed to contribute to campaigns. This stipulation includes 501 (c)(4) organizations. Unless they have a separate fund explicitly for individual contributions, the bill will treat their election communications like those from the businesses that donate to them.
Finally, the bill comes with a severability clause: if one part of it is found unconstitutional, the others will still remain in effect.