On January 24, 2000, the U.S. Supreme Court ruled 6 to 3 that a Missouri state campaign contribution law that limits individual donations to candidates does not violate the First Amendment under Buckley v. Valeo, 424 U.S. 1(1976).
A lawsuit was filed alleging that the law violates the First Amendment right to free speech and association. The district court entered judgment for the State. The Eighth Circuit struck down the law as failing the Buckley standard which requires a compelling state interest for contribution limits. The State argued that the compelling interest was the corruption or perception of corruption brought about when candidates accept large campaign contributions. The State failed, however, to prove that corruption is a real problem in Missouri and it is a direct result of large campaign contributions. The Eighth Circuit stated that even if there exists a compelling state interest, the State could not show that the law was narrowly drawn to serve that interest.
Over-regulation can distort the marketplace of political ideas. Contributions made to campaigns on all levels is an exercise in free speech and political activity. The Supreme Court, however, determined that campaign limits do not violate the First Amendment, leaving states free to restrict manufacturers from participating in the free exchange of political ideas.