Abstract  The Federal Election Campaign Act as passed in 1971 and amended in 1974represented landmark federal legislation. It imposed new restrictions oncampaign contributions and contained path-breaking provisions for the useof public funds to partially finance the campaigns of qualifyingpresidential candidates. The nominal intent of the legislation was torestrain the skyrocketing campaign costs and the feared abuses thatgrowing dependencies on such money engendered. Three decades later, withthe campaign spending ``arms race'' still raging. Congress sought toimpose further constraints on campaign spending with enactment of theBipartisan Campaign Reform Act of 2002 (BCRA). Competing theories ofgovernment regulation are reviewed to better understand the intent andlikely consequences of the 2002 legislation in particular and campaignfinance regulation in general. A simple model of the campaign spendingprocess highlights the likely causes of the rapid growth in campaignspending. Data and evidence are presented to test hypotheses concerningthe timing of and underlying motivations for BCRA.