The U.S. Supreme Court case Colorado Republican Federal Campaign Committee and Douglas Jones, Treasurer v. Federal Election Commission (1995) revolved around the issue of whether the limitations on expenditures by political parties in connection with congressional campaigns, as set forth by the Federal Election Campaign Act of 1971, violated the First Amendment's freedom of speech clause. The Colorado Republican Party had purchased radio ads attacking a potential Democratic candidate prior to primary elections and was subsequently sued by the FEC for exceeding spending limits. In a complex decision where no single opinion garnered majority support, six justices agreed that applying these expenditure limits to independent expenditures made before a party’s candidate is nominated violates free speech protections under First Amendment rights.

In the dissenting opinion for Colorado Republican Federal Campaign Committee and Douglas Jones, Treasurer v. Federal Election Commission, Justice Stevens argued that political parties should not be allowed to spend unlimited amounts on behalf of their candidates because it would lead to corruption or the appearance of corruption. He believed that such spending is indistinguishable from direct contributions to candidates, which are subject to limits under federal law. Furthermore, he contended that allowing unrestricted party expenditures would undermine those contribution limits by providing a loophole for donors who want to give more than the legal maximum directly to a candidate. In his view, this could result in undue influence over elected officials by wealthy contributors and special interest groups.