Soft money was never banned outright under McCain-Feingold slash campaign finance reform slash Bipartisan Campaign Finance Reform Act (BCRA). The law severely slashed it for federal parties and candidates, and tinkered a bit for outside groups. An interesting issue sure to come out of this election -- and more importantly, the recount -- is whether soft money can be used to pay for recount activities. The much maligned Federal Election Commission has two options before it. Wednesday's BNA Money and Politics Report fills us in on the FEC's options:

One draft concludes that recount expenses are "in connection with" a federal election and therefore subject to a ban on solicitation of soft money by federal officeholders and candidates enacted in the 2002 Bipartisan Campaign Reform Act.

The alternative draft concludes BCRA did not repeal FEC regulations in place before the law was passed, which allow unlimited individual contributions to recount funds. These FEC rules bar contributions from unions and corporations.