The peggy o'neil eaton affair was significant in

citizens united v. federal election commission, case in which the u.s. supreme court on january 21, 2010, ruled (5–4) that laws that prevented corporations and unions from using their general treasury funds for independent “electioneering communications” (political advertising) violated the first amendment’s guarantee of freedom of speech. in so doing the court invalidated section 203 of the federal bipartisan campaign reform act of 2002 (bcra)—also known as the mccain-feingold act for its sponsors, sen. john mccain and sen. russ feingold—as well as section 441(b) of the federal election campaign act of 1971 (feca), which the bcra had amended. the court also overturned in whole or in part two previous supreme court rulings: austin v. michigan chamber of commerce (1990) and mcconnell v. federal election commission (2003).

immediately perceived as historically important, the decision generated intense controversy outside the court. some hailed it as a resounding victory for freedom of speech, while others criticized it as an overreaching attempt to rewrite campaign finance law. among the critics was pres. barack obama, who remarked in his state of the union address in the house of representatives one week later that the decision would “open the floodgates for special interests…to spend without limit in our elections.” his criticism provoked one of the supreme court justices in attendance, samuel a. alito, to break decorum by mouthing the words “not true.”

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