Under the Bipartisan Campaign Reform Act of 2002 (BCRA), certain contribution limits are indexed for inflation every two years, based on the change in the cost of living since 2001, which is the base year for adjusting these limits. [FN1] The new inflation-adjusted limits are:
- The limits on contributions made by persons to candidates and national party committees (2 U.S.C. §§ 441a(a)(1)(A) and (B));
- The biennial aggregate contribution limits for individuals (2 U.S.C. §441a(a)(3)); and
- The limit on contributions made to U.S. Senate candidates by certain political party committees (2 U.S.C. §441a(h)).
(Note the chart for the contribution limits applicable for 2005-2006.)
The inflation adjustments to these limits are made only in odd-numbered years, and—except for the biennial limit—the limits are in effect for the two-year election cycle beginning on the day after the general election and ending on the date of the next general election. The biennial limit covers the two calendar-year period beginning on January 1 of the odd-numbered year and ending on December 31 of the even-numbered year.
Please note, however, that these limits do not apply to contributions raised to retire debts from past elections. Contributions received to retire such debts may not exceed the contribution limits in effect on the date of the election for which those debts were incurred. 11 CFR 110.1(b)(3)(iii).
The BCRA also introduced a rounding provision for all of the amounts that are increased by the indexing for inflation. [FN2] Under this provision, if the inflation-adjusted amount is not a multiple of $100, then the amount is rounded to the nearest $100.
1 The applicable cost of living adjustment amount is 1.067.
2 This provision also affects the indexing of coordinated party expenditure limits and presidential expenditure limits. 2 U.S.C. §§ 441a(b) and 441a(d).