Hard money and soft money are terms used to differentiate between campaign funding that is, and is not, regulated under federal campaign finance law. Hard money describes donations by individuals and groups made directly to political candidates running for federal office. Such contributions are restricted by law. Soft money refers to donations not regulated by law that can be spent only on civic activities such as voter-registration drives, party-building activities, administrative costs and in support of state and local candidates. “Soft money” contributions, by law, may not be used to directly support a candidate for federal office. The U.S. Supreme Court in 2003 upheld congressional restrictions passed in 2002 on soft money contributions. See also McCain-Feingold.