Legal Controversy Erupts Over Political TV Ads

The American Issues Project has spent nearly $3 million to run one political ad more than 7,000 times in swing states: the largest expenditure by an independent group so far this election cycle. The group is funded by Harold Simmons, the Texas billionaire who was also a primary backer of the Swift Boat Veterans for Truth group that attacked Democratic presidential nominee John Kerry in 2004. The group is relying on a legal exemption that allows nonprofits to accept large contributions to spend on political advertising so long as the groups don't have the "major purpose" of influencing elections. "It really comes down to whether this organization has a major purpose of influencing federal elections," said Richard Hasen, an election-law expert at Loyola Law School in Los Angeles. "So far, it looks like that's the only purpose of this group."