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The Supreme Court Looks At Eliminating A 50-Year-Old Rule

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The Supreme Court Looks At Eliminating A 50-Year-Old Rule

The Supreme Court has steadily loosened campaign finance rules in a series of decisions ever since Chief Justice John Roberts was confirmed in 2005. They will look to go further on Tuesday, when the court hears arguments in a case challenging the 50-year-old limits placed on coordinated spending between parties and candidates.

In NRSC v. Federal Election Commission, a Republican campaign committee is challenging limits placed on how much money political parties can spend in direct coordination with candidates. Those limits, which were put in place in the Federal Election Campaign Act of 1971, were intended as a companion to other rules on how much individuals can contribute to individual campaigns, preventing deep-pocketed contributors from using donations to parties as a work-around to those limits. The current limits on how much a party can spend in coordination with a specific candidate vary, from $63,600 for most House races up to $3.9 million for Senate races in California and even more for presidential candidates.

The case stems from Vice President JD Vance’s 2022 Senate campaign in Ohio. During the primary, Vance’s fundraising lagged behind his GOP opponents and he relied on outside spending from billionaire Peter Thiel to push him over the top. He continued to struggle to raise money in the general election against Democratic Rep. Tim Ryan. (Vance eventually won.) And so, the National Republican Senatorial Committee, the chief political committee for GOP Senate candidates, and Vance brought suit to allow the party to spend unlimited sums in direct coordination with their candidate, arguing the coordination limits infringed on core First Amendment rights for political speech.

Lawyers for the NRSC argue that the limits in question block constitutionally protected political speech and do not prevent corruption or its appearance. Since “no one seriously claims that parties are trying to bribe their candidates,” the limits have been defended and upheld in the past as preventing “quid pro quo-by-circumvention,” the NRSC brief states. But this justification was ruled out-of-bounds in the court’s 2014 decision in McCutcheon v. FEC and so the party coordination limits should be struck down, the brief argues.

Indeed, preventing the circumvention of contribution limits is at the heart of the coordinated spending limits. If a political party can raise nearly $1 million from a single donor who wants to spend that on a particular candidate, the party can effectively contribute that $1 million — or more — to the candidate’s campaign by funding, for example, their advertisements as a coordinated expenditure. Since candidates are limited to raising $3,500 per election from a single donor, this would be a major way to circumvent those limits, which are at the heart of campaign finance regulation.

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Vice President JD Vance brought suit alongside the National Republican Senatorial Committee to invalidate party coordination limits in a case stemming from his 2022 Senate campaign in Ohio.

Michael Conroy via Associated Press

Each lower court that heard the case rejected the NRSC’s arguments, following the Supreme Court’s 2001 precedent in FEC v. Colorado Republican Federal Campaign Committee that upheld the limits. There, in a 5-4 decision written by then-Justice David Souter, the court ruled that “a party’s coordinated expenditures, unlike expenditures truly independent, may be restricted to minimize circumvention of contribution limits.” But the Supreme Court took up the case and now could upend campaign finance law yet again.

The court has upheld candidate contribution limits as constitutional since 1976, so it would be logical for them to prevent their circumvention — particularly as it has become easier for parties to raise the kind of large contributions that the candidate limits are meant to protect against. But that hasn’t held the court back in the past.

Since the court last heard a case challenging coordinated party spending limits, its composition has changed dramatically — and so has its campaign finance jurisprudence. In the years since 2001, the court’s conservative bloc has grown from five to six with no real moderates among them. And with the retirement of Sandra Day O’Connor in 2006, the court lost its last member with any experience running for office or working on a political campaign.

It has also issued decision after decision gutting federal and state campaign finance laws. The most prominent of these is 2010’s Citizens United v. FEC, a decision that enabled corporations, unions and nonprofits to spend unlimited sums on independent campaign expenditures. But there are more, including the McCutcheon decision that invalidated aggregate contribution limits that put a cap on how much money a single donor could contribute in total in one election cycle.

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These campaign finance decisions have largely been based on a repeated misunderstanding of how candidates and parties use money in elections. In each case, the court’s decisions loosening campaign finance restrictions have led to massive unintended — at least according to the court’s writings — consequences, such as an increase in undisclosed campaign money and illegal foreign donations and the circumvention of party contribution limits.

There’s no reason to think that won’t happen here.

“This case needs to be looked at in the context of the court’s now-two-decade run of substituting its own judgment for that of voters and Congress on campaign finance,” said Daniel Weiner, a campaign finance law expert for the Brennan Center for Justice, a left-leaning nonprofit.

In Citizens United, then-Justice Anthony Kennedy, who wrote the majority opinion, explained his decision by stating that “independent expenditures, including those made by corporations, do not give rise to corruption or the appearance of corruption.” That has proved wildly inaccurate as the corruption convictions of North Carolina insurance executive Greg Lindberg and former Ohio House Speaker Larry Householder (R) and the 2015 indictment of then-Sen. Robert Menendez (D-N.J.) all involved corrupting contributions made through outside groups making independent expenditures. (Menendez was later convicted of accepting bribes and acting as a foreign agent in a separate case in 2024.)

The Supreme Court under the leadership of Chief Justice John Roberts has repeatedly loosened campaign finance restrictions — with many unintended consequences.
The Supreme Court under the leadership of Chief Justice John Roberts has repeatedly loosened campaign finance restrictions — with many unintended consequences.

Manuel Balce Ceneta via Associated Press

Kennedy also promised that, thanks to the internet and disclosure laws, corporations or others spending unlimited sums on independent expenditures could be held accountable by the public. But Citizens United enabled a radical decrease in the transparency of campaign spending as “dark money” nonprofits, which do not disclose their donors, became significant political spenders. These groups now make up a growing percentage of donors to super PACs. Though super PACs do have to disclose their donors, that does not trickle down to requiring disclosures of the donors to those donors — making the true origin of a large portion of election funding completely opaque.

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Similarly, the notion that independent expenditures are truly independent from candidates or parties has proved to be completely inaccurate. The largest-spending outside groups are those directly connected to party leaders or staffed by close aides to the candidates they support. Candidates provide information, like b-roll and directions on what messages to use in advertising for outside groups, on their websites or surreptitiously on social media. And in 2024, the FEC ruled that supposedly independent groups may directly coordinate with parties and candidates on get-out-the-vote operations. Billionaire Elon Musk went on to do exactly this with the Trump campaign and earned a plum spot in the White House for his efforts.

In the McCutcheon case, the court’s decision was largely rooted in naive expectations of how political parties would act once aggregate limits were eliminated. The aggregate contribution limits capped the total amount a donor could give in any one election, among all political parties and candidates. The intent was, like the coordinated spending limits, to prevent corruption and work-arounds of the candidate limits.

A key argument in the case was that, absent the aggregate limits, political parties could create a joint fundraising committee that linked all 50 state parties together with the national party and allowed them to easily shift money donated in one state to support a candidate elsewhere. During oral arguments, Alito called these “wild hypotheticals.”

Then-Justice Antonin Scalia wrote for the majority: “The Government provides no reason to believe that many state parties would willingly participate in a scheme to funnel money to another State’s candidates.”

But that’s exactly what happened. Beginning with Hillary Clinton’s presidential campaign in 2016, every presidential campaign has created a super joint fundraising committee that then redirects contributions made to non-swing-state parties toward state parties in swing states or back to the national party.

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While the party coordination limits seem to present less of an opportunity for the court to cause severe unintended consequences with another uninformed decision, there are a couple of things to keep in mind.

First and foremost, coordinated spending is done almost entirely in the form of advertising: The candidate designs an ad and plans when and where to run it, and the party foots the bill. But this could have unintended downstream consequences for television stations, which are required to provide candidates with the lowest unit price for campaign ads in the run-up to an election. Neither parties nor outside groups receive this benefit.

The Supreme Court will hear arguments in NRSC v. FEC on Tuesday.
The Supreme Court will hear arguments in NRSC v. FEC on Tuesday.

J. Scott Applewhite via Associated Press

If parties can suddenly subsidize candidate ads, television stations could be put under financial strain as they lose money that they previously received from higher charges on party advertising. This is an argument made by lawyers for the Democratic National Committee, who have entered the case to defend the limits.

“Broadcasters across the country will face significant increases in advertisements that purport to qualify for lowest unit rates, thereby inflicting a substantial financial strain upon them,” the DNC’s brief states.

This is likely to lead broadcasters to challenge rules that interpret coordinated spending as coming from the candidate and therefore receiving the lowest unit rate, according to Marc Elias, the lead lawyer for the DNC.

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“This will have commercial impacts outside of the campaign finance world,” Elias said.

And then there are the unintended consequences that may flow within the campaign finance world.

By eliminating the aggregate limits, the McCutcheon decision opened the door for parties to collect massive contributions from single donors through super joint fundraising committees. In 2024, the maximum contribution to Vice President Kamala Harris’ joint fundraising committee was $929,600 for a single donor. Most of that money wound up with the Democratic National Committee or its state parties, which then circumvented contribution limits by routing that money to swing state committees.

If the court does end the coordinated spending limits, it will lead to a mass circumvention of the candidate limits — just as the McCutcheon decision did for party limits. And, as the unintended consequences of McCutcheon now flow into the NRSC case, so too would the circumvention of candidate limits lead toward their ultimate elimination.

There may be reasonable policy reasons to support ending or raising the coordinated spending limits, as the Brennan Center’s Weiner has advocated. In a world where single billionaires like Musk can spend unlimited amounts to directly coordinate with candidates through super PACs, it would be better for political parties, which are rooted in mass democracy and governance, to be on an equal, if not supreme, footing.

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But that should be done by Congress, Weiner argues, not the Supreme Court — which time and time again has shown it does not understand how political campaigns work.

“The ultimate question is who should decide,” Weiner said. “I think it should be Congress that decides. We think of that as a fundamental principle. This is not something within the constitutional competence or, frankly, the expertise of the Supreme Court to make this call.”

Finance

Close call tipped as Reserve Bank mulls third rate hike

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Close call tipped as Reserve Bank mulls third rate hike

A repeat of the Reserve Bank board’s split decision to raise interest rates in March could be on the cards as the central bank frets over the dual threats of high inflation and a stalling economy.

Financial markets and most economists are tipping a third straight rate hike on Tuesday.

ANZ Bank head of Australian economics Adam Boyton is part of the chorus predicting the Reserve Bank will lift the official cash rate to 4.35 per cent – the same level as its post-COVID-19 pandemic peak.

But he thinks it won’t be a lay down misere, with several members likely to vote in favour of keeping rates on hold.

The Reserve Bank hiked interest rates in March for the second consecutive month. (Susie Dodds/AAP PHOTOS)

The combination of a tight labour market, above-target underlying inflation and concerns inflation expectations could become unanchored all point in favour of a hike.

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At the same time, the US-Israeli war with Iran’s effects on the economy could convince some board members more time is needed to weigh the impact on economic growth.

In March, four of the board’s nine members voted unsuccessfully to keep rates on hold, arguing there was too much uncertainty around the domestic growth outlook and how the conflict in the Middle East would evolve.

Uncertainty around the path forward would be reflected in the bank’s post-meeting communications, Mr Boyton said, with no forward guidance expected.

“We expect, however, a tilt in the language in the post-meeting statement that will open the door to an extended pause,” he said.

Financial markets put the chance of a hike on Tuesday at about three-quarters and have fully priced in at least one more rate rise by November.

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Westpac forecasts another two hikes after May, in June and August.

But economists at ANZ, NAB, Commonwealth Bank, Deutsche Bank and HSBC think the Reserve Bank will stand pat after Tuesday.

Residential properties are seen in the southside suburb of Bulimba
Building approvals figures for March will be published on Monday. (Darren England/AAP PHOTOS)

“Whether the RBA delivers further tightening beyond May will depend on how quickly the economy weakens,” HSBC’s local chief economist Paul Bloxham said.

“We see a recent sharp weakening in sentiment as a clear signal that a downturn is already under way.

“Our central case is that, beyond the May hike, the RBA remains on hold.”

Updated economic forecasts by Reserve Bank staff, released simultaneously to the monetary policy decision, will be closely scrutinised for hints about the path forward for rates.

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Earlier on Tuesday, the Australian Bureau of Statistics will release household spending figures for March.

Economists predict a rise of 1.5 per cent, driven by higher fuel spending.

Building approvals figures for March will be published on Monday.

Trend dwelling approvals have been gradually rising since early 2024 to just over 210,000 per year.

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Pedestrians cross a road in front of a Yarra Tram
The Australian Bureau of Statistics will release its March household spending data on Tuesday. (Joel Carrett/AAP PHOTOS)

But the slow progress the industry has been making in recent years could be scuppered by surging building material prices as a result of the Iran war, the National Housing Supply and Affordability Council has warned.

On Wall Street, the S&P 500 and the Nasdaq advanced to record closing highs on Friday, boosted by ‌robust earnings and a dip in crude prices

The S&P 500 gained 20.46 points, or 0.28 per cent, to end at 7,229.47 points, while the Nasdaq Composite gained 217.67 points, or 0.87 per cent, to 25,109.98.

The Dow Jones Industrial Average fell 155.67 points, or 0.31 per cent, to 49,496.47.

Australia’s share market broke its worst losing streak since 2018 as oil prices eased from four-year highs and strong US earnings boosted investor sentiment.

The S&P/ASX200 gained 64 points on Friday, up 0.74 per cent, to 8,729.8, while the broader All Ordinaries improved by 67 points, or 0.75 per cent, to 8,954.6.

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Finance tips for when you’re caring for aging family members

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Finance tips for when you’re caring for aging family members


Finance tips for when you’re caring for aging family members – CBS News

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“CBS Saturday Morning” shares tips on managing your finances when you’re caring for aging family members.

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Inside Italy’s secret ‘Cheese Bank,’ where Parmigiano Reggiano becomes financial gold | CNN Business

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Inside Italy’s secret ‘Cheese Bank,’ where Parmigiano Reggiano becomes financial gold | CNN Business

In the heart of Emilia‑Romagna, northern Italy, vast climate‑controlled warehouses hide one of the country’s most valuable assets. Towering shelves hold hundreds of thousands of wheels of Parmigiano Reggiano aging slowly, quietly and becoming more valuable with every passing month.

To outsiders, it looks like a cathedral of cheese. To Italy’s dairy producers, it is a lifeline.

Parmigiano Reggiano is one of the world’s most tightly regulated foods. It can only be produced in a small, designated area using three ingredients — milk, salt and rennet — and it must age for at least 12 months before it can be sold. Many wheels mature for 24, 36, or even 40 months.

That long wait creates a financial bottleneck. Farmers must be paid every 30 days. Staff, feed and energy costs accumulate daily. But revenue doesn’t arrive for a year or more. For more than a century, Credem Bank has stepped in to bridge that gap — accepting cheese as collateral.

Giancarlo Ravanetti, the boss of the bank’s cheese warehouse business, explains: “In Italy about 4 million wheels of Parmigiano Reggiano are made, and we keep 500,000… and allow customers to use the wheels as collateral to obtain financing.” The warehouse handles “about 2,300,000 wheels a year,” he adds. Inside these vaults, the value is staggering: “About 325 million euros ($382 million) worth of Parmigiano Reggiano.”

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When a wheel of Parmigiano Reggiano arrives at the warehouse, it enters a tightly controlled system perfected over generations. Each wheel is scanned and logged into a digital system, a kind of passport that records its production date, dairy of origin and current status. Only then can it officially enter the vault.

The wheels are placed on long wooden shelves. Temperature, humidity and airflow are carefully controlled. Warehouse staff walk the aisles daily, checking wheels for cracks, swelling or moisture issues. Any irregularity is flagged.

At 12 months, the Parmigiano Reggiano Consortium performs the traditional tapping test — striking each wheel with a hammer and listening for internal defects. Only wheels that produce a clean, uniform sound earn the fire‑branded seal. The warehouse handles millions of wheels a year, moving them in and out for dairies, processors, exporters and companies that buy wheels for grating or long aging.

Once wheels are registered and aging, they can be pledged as collateral. The warehouse becomes a secure vault guaranteeing the bank that the wheels exist, are in good condition and match the pledge register. Ravanetti notes that this system has operated for more than a century and the bank has never lost a single euro on these loans.

The Consortium oversees the entire ecosystem, which unites roughly 300 producers and more than 2,000 dairy farmers. Spokesperson Fabrizio Raimondi describes it as an organization representing “approximately 50,000 people” and a sector with “a turnover over 4 billion.” Its expert team enforces strict production rules, promotes the brand globally, fights counterfeits and certifies every wheel. “These sealers can assure the consumer that this is the real one and the quality is good,” Raimondi says.

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The Parmigiano Reggiano supply chain is built on cooperatives, a structure that Paolo Ganzerli of Granterre says is both a strength and a vulnerability.
Granterre, one of Italy’s largest dairy groups, is technically a stock company but owned by cooperatives of milk and cheese producers. This means the company must support hundreds of small farmers who rely on stable milk payments to survive.

Ganzerli explains that dairies must pay farmers immediately, even though the cheese they produce won’t generate revenue for at least a year. “Without this system of leverage, the world of Parmigiano Reggiano cannot exist,” he says.

Ganzerli describes a production system that is both artisanal and extremely expensive. Parmigiano Reggiano can only be made in a small geographic area, and the cows must be fed with locally produced forage. Different microclimates from mountain pastures to valley farms influence the milk’s characteristics. But the cost of producing that milk has soared in recent years, driven by inflation and global instability.

As Ganzerli puts it, “The cost to produce the feeding for the cows, the cost for everything, increased a lot… energy, transport, logistics — everything is more expensive now.” Even large companies like Granterre feel the strain, he says, because every increase in energy or feed prices ripples through the entire supply chain.

In 2025, the Protected Designation of Origin crossed a historic threshold: exports exceeded half of total sales for the first time, reaching 50.5% of all Parmigiano Reggiano sold worldwide.

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International demand grew +2.7%, even as the domestic Italian market contracted sharply. France fell slightly (–0.3%, 14,800 t.), Germany remained stable (+0.1%, 10,400 t.), Spain grew (+2.5%, 1,850 t.), Sweden surged (+8.8%, 2,500 t.), and the United Kingdom rose strongly (+7.8%, 8,400 t.). Outside Europe, the United States grew +2.3% (16,800 t.), Canada +8.3% (3,900 t.), with Japan and the Middle East showing smaller but rising demand.

The United States is the largest foreign market for Parmigiano Reggiano — but also the most volatile. In late 2025, new duties raised the total tariff burden to 25%, with the possibility of further increases. Combined with rising shipping costs, inflation, and geopolitical tensions, the U.S. market has become increasingly unpredictable.

Raimondi notes: “There is regulatory uncertainty, and many operators are waiting before placing new orders.” The beginning of 2026 confirmed this trend as US importers paused purchases to assess the impact of tariffs and economic pressures.

Italy, meanwhile, saw a 10% drop in volumes sold in 2025. Higher consumer prices led Italians to buy Parmigiano Reggiano less frequently and in smaller portions, though the number of households purchasing it remained stable. Prices rose sharply: 12‑month wheels reached €13.22/kg (+20.6%), 24‑month wheels €15.59/kg (+24.8%). Production climbed to 4.19 million wheels (+2.7%).

Ganzerli notes that Parmigiano Reggiano is naturally lactose‑free, high in protein and free of additives — qualities that have helped it gain traction as a “superfood.” But he also warns that if prices rise too high, consumers may shift to cheaper cheeses like Grana Padano.

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Producers typically receive 60–80% of a wheel’s value upfront when they use cheese as collateral. Blockchain technology now allows wheels to be pledged even while stored in producers’ own facilities, doubling Credem’s lending capacity. The Consortium is also investing in tourism, aiming to grow dedicated Parmigiano‑focused visits from 85,000 to 300,000 by 2029.

Parmigiano Reggiano is a €4 billion ($4.7 billion) industry sustained by some 300 certified dairies. Its survival depends on a delicate balance of tradition, regulation, and financial innovation.

Inside the cheese bank’s vast aisles, the wheels sit quietly, slowly transforming into one of Italy’s most prized exports. Each one represents months of labor, generations of expertise, and a financial system built on patience.

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