Explain the FECA (Federal Elections Campaign Act) - soft money and foreign contributions.

The primary purpose of the Bipartisan Campaign Reform Act (BCRA) was to eliminate the increased use of so-called soft money to fund advertising by political parties on behalf of their candidates. Prior to the law’s enactment, money was considered “hard” if it was raised in accordance with the limits concerning sources and amounts specified by FECA as amended in 1974. For example, individual contributions were limited to $1,000 per federal candidate (or candidate committee) per election, and contributions by corporations and unions were prohibited (a ban that had been in effect since the early 20th century). However, state campaign finance rules differed from federal rules, as states allowed corporations and unions to donate to state parties and candidates in large, sometimes unlimited, amounts. Such soft-money contributions could then be funneled to federal candidates and national party committees, thus circumventing the FECA limits. That practice was particularly apparent in the U.S. presidential elections of 1996 and 2000.