OPINION
The modern era of campaign finance reform began in 1972, following the infa
*1113
mous break-in at the Watergate hotel. Congress responded to the ensuing scandal by overhauling the Federal Election Campaign Act to impose new caps on political spending, as states and cities followed suit with laws of their own. The City of San Diego (the “City”) enacted its Municipal Election Campaign Control Ordinance (“ECCO”) in 1973.
See
San Diego, Cal., Municipal Code ch. 2, art. 7, div. 29. Then, in
Buckley v. Valeo,
Recent Supreme Court decisions, notably
Citizens United v. FEC,
- U.S. -,
1. Factual and Procedural Background
ECCO is a comprehensive law governing all aspects of campaign finance in San Diego city elections. Plaintiffs Phil Thalheimer, a former and future city council candidate; ABC PAC, a political action committee for the Associated Builders and Contractors San Diego chapter; the Lincoln Club, a registered political action committee; the San Diego County Republican Party, the local branch of the national Party; and John Nienstedt, a San Diego resident who regularly contributes to local candidates and political committees, sued to enjoin enforcement of five ECCO provisions they claim violate their respective First Amendment rights, facially and as applied. Plaintiffs filed a verified complaint seeking a preliminary injunction to block enforcement of the challenged ECCO provisions before trial, a time period they noted would likely encompass at least two municipal elections: San Diego’s June 8, 2010 primary, and the November 2, 2010 general election.
Plaintiffs challenged ECCO § 27.2936, which restricts the fundraising and spending of political committees, § 27.2938, which imposes a ban on contributions to candidates outside of a 12-month pre-election window, §§ 27.2950-51, which prohibit contributions by any non-individual enti *1114 ties, and § 27.2935, which imposes a $500 limit for contributions to candidates and committees supporting or opposing a candidate.
ECCO § 27.2936 applies to “general purpose recipient committees,” defined elsewhere in the ordinance as committees “not controlled by a candidate” that receive $1,000 or more in annual donations for the purpose of supporting or opposing candidates or ballot measures. Id. at § 27.2903. Such committees may not “use a contribution for the purpose of supporting or opposing a candidate unless the contribution is attributable to an individual in an amount that does not exceed $500 per candidate per election.” Id at § 27.2936(b). The law applies only to contributions made with the specific purpose of participation in municipal elections, thus excluding “dues, donations, fees, or other forms of monetary transactions” from its scope. Id. at § 27.2936(f). The specific dollar amount of the limits are adjusted every two years based on the Consumer Price Index. Id. at § 27.2937(a).
The temporal limit, ECCO § 27.2938, makes it unlawful for any candidate or candidate-controlled political committee “to solicit or accept contributions prior to the twelve months preceding the primary election for the office sought.” Id. at § 27.2938(a). The San Diego Ethics Commission has interpreted this provision as also preventing candidates from spending their own money on their campaigns outside of the 12-month window.
The organizational contribution limit, ECCO § 27.2950, prohibits “any person other than an individual” from contributing to a candidate or candidate-controlled committee. Id. at § 27.2950(a). The ordinance defines “person” as including “any individual, proprietorship, firm, partnership, joint venture, syndicate, business trust, company, corporation, association, committee, labor union, or any other organization or group of persons acting in concert.” Id. at § 27.2903. The effect of the provision is to bar contributions to candidates from all organizations and other non-individual entities. ECCO § 27.2951 underscores the prohibition by making it unlawful for candidates to accept contributions drawn against checking or credit card accounts “unless such account belongs to one or more individuals in their individual capacity.” Id. at § 27.2951(a). 1
On February 16, the district court preliminarily enjoined enforcement of ECCO § 27.2936, the committee fund-raising/spending limit, but held that Plaintiffs were unlikely to succeed in their First Amendment challenge to the temporal contribution ban, § 27.2938, except as to the San Diego Ethics Commission’s enforcement position that the temporal ban may prohibit candidates’ spending their own money on their behalf. As to the non-individual contribution limits, §§ 27.2950 and 27.2951, the district court concluded that Plaintiffs were unlikely to succeed in their claim that the laws are unconstitutional as applied generally to corporations and other organizational entities, but enjoined the provisions as applied to political parties. The district court also concluded that Plaintiffs were unlikely to succeed in challenging ECCO § 27.2935, the City’s $500 individual contribution limit. Plaintiffs do not appeal this portion of the ruling.
*1115 In a February 22 order, the district court clarified that its preliminary injunction against enforcement of § 27.2936, the committee fundraising and spending limit, applied to committees that make only independent expenditures, and covered contributions made by both individuals and non-individual entities. The district court also granted in part Plaintiffs’ request for an injunction against § 27.2951, the limit on contributions drawn against non-individual entities’ credit card and checking accounts, to the extent that it barred contributions drawn against organizational accounts to committees that make only independent expenditures. These cross-appeals ensued.
II. Jurisdiction and Standard of Review
The district court had jurisdiction pursuant to 28 U.S.C. § 1331. We have jurisdiction under 28 U.S.C. § 1292(a)(1). We review a district court’s decision to grant or deny a preliminary injunction for abuse of discretion.
See Dominguez v. Schwarzenegger,
III. Discussion
“A plaintiff seeking a preliminary injunction must establish that he is likely to succeed on the merits, that he is likely to suffer irreparable harm in the absence of preliminary relief, that the balance of equities tips in his favor, and that an injunction is in the public interest.”
Winter v. NRDC,
Courts asked to issue preliminary injunctions based on First Amendment grounds face an inherent tension: the moving party bears the burden of showing likely success on the merits — a high burden if the injunction changes the status quo before trial — and yet within that merits determination the government bears the burden of justifying its speech-restrictive law.
Compare Mazurek v. Armstrong,
The Supreme Court affirmed, reasoning that the burden of proof at the preliminary injunction phase tracks the burden of proof at trial, and therefore “RFRA challenges should be adjudicated in the same manner as constitutionally mandated applications of the test, including at the preliminary injunction stage.”
Id.
at 430,
In deciding whether to grant a preliminary injunction, a district court must consider whether the plaintiffs have demonstrated that they are likely to prevail on the merits.... As the Government bears the burden of proof on the ultimate question of COPA’s constitutionality, respondents must be deemed likely to prevail unless the Government has shown that respondents’ proposed less restrictive alternatives are less effective than COPA.
Id.
at 666,
Therefore, in the First Amendment context, the moving party bears the initial burden of making a colorable claim that its First Amendment rights have been infringed, or are threatened with infringement, at which point the burden shifts to the government to justify the restriction.
See also Klein v. City of San Clemente,
A verified complaint may be treated as an affidavit, and, as such, it is evidence that may support injunctive relief.
See Lew v. Kona Hosp.,
Plaintiffs also presented evidence that the ABC PAC and the Lincoln Club, which receive contributions of over $500 from donors, including trusts, corporations and other business associations, would like to use such funds on independent expenditures, but are prohibited from doing so by ECCO § 27.2936. Similarly, the San Diego County Republican Party was prohibited from making direct contributions to local candidates by ECCO § 27.2950, which bars organizations from contributing to candidates’ campaigns. And finally, Plaintiff Nienstedt declared that he would *1117 like to contribute money now to a candidate in a primary that is more than a year away, but is prohibited from doing so by ECCO § 27.2938’s temporal limitations.
The City argues that this evidence is insufficient to make out a colorable First Amendment claim, relying on
Citizens for Clean Gov’t v. City of San Diego,
Our conclusion in Citizens for Clean Gov’t that the City, rather than the Plaintiffs, failed to produce sufficient evidence, underscores the special constitutional burden placed on the government to justify a law that restricts political speech. See id. at 653-54. Moreover, the present appeal involves a preliminary injunction and therefore we are bound by the deferential abuse of discretion standard of review. By contrast, in Citizens for Clean Gov’t we conducted a de novo review of a final judgment. Id. at 650 (“Because this appeal relates to a permanent injunction, we are not constrained by the more limited standard of review that applied at the preliminary injunction phase of this litigation.”). We therefore conclude that the district court applied the correct preliminary injunction standard, and properly shifted the burden to the City to justify the ECCO provisions under review.
A. Likelihood of Success on the Merits
1. ECCO § 27.2936: Contribution/Expenditure Limit for Committees
The
Buckley
Court established that laws limiting campaign expenditures are subject to strict scrutiny, but restrictions on contributions to candidates are judged under a lesser standard.
The strict scrutiny standard of review for limitations on expenditures requires the government to prove that a law is narrowly tailored to further a compelling governmental interest.
See Citizens United,
ECCO § 27.2936(b) makes it unlawful for a “general purpose recipient committee” — including independent committees that do not coordinate with candidates — “to use a contribution for the purpose of supporting or opposing a candidate unless the contribution is attributable to an individual in an amount that does not exceed $500 per candidate per election.” Therefore, the provision is plausibly read as both a contribution limit, and an expenditure limit. Although the parties dispute the applicable level of scrutiny, we find it unnecessary to place the provision in one category or the other because Plaintiffs are likely to succeed in demonstrating the law to be unconstitutional under either standard.
See Long Beach Area Chamber of Commerce v. City of Long Beach,
“The Supreme Court has concluded that ‘preventing corruption or the appearance of corruption are the only legitimate and compelling government interests thus far identified for restricting campaign finances.’”
Id.
at 694 (quoting
FEC v. Nat'l Conservative Political Action Comm.,
In
Citizens United,
the Court considered the constitutionality of a federal law restricting corporate and union spending on “electioneering communications,” defined as broadcasts aired in the run-up to an election that support or oppose a political candidate.
The
Citizens United
Court overruled
Austin
and the relevant portion of
McConnell,
holding that the anti-distortion rationale was not a valid governmental interest,
*1119
and that “the Government may not suppress political speech on the basis of the speaker’s corporate identity.”
Citizens United,
We applied
Citizens United
to a campaign regulation similar to the City’s in
Long Beach.
There we considered the constitutionality of the Long Beach Campaign Reform Act (LBCRA) as applied to political action committees affiliated with the Long Beach Area Chamber of Commerce.
We concluded that the
Citizens United
decision had narrowed the scope of the anti-corruption rationale to cover “quid pro quo corruption only, as opposed to money spent to obtain ‘influence over or access to elected officials.’ ”
Id.
at 694 n. 5 (quoting
Citizens United,
The City argues that while
Citizens United
partially overruled
McConnell,
the Court left intact a portion of the earlier decision upholding a limitation on how committees spend certain contributions.
McConnell
involved a constitutional challenge to the Bipartisan Campaign Reform Act of 2002 (BCRA), which amended the Federal Election Campaign Act (FECA) to add restrictions on the use of “soft money,” or contributions made “to political parties for activities intended to influence state or local elections.”
The
McConnell
Court held that these provisions “simply limit the source and individual amount of donations. That they do so by prohibiting the spending of soft money does not render them expenditure limitations.”
Id.
at 139,
Similarly, in
California Medical Association v. FEC,
The
CalMed
Court explained that multicandidate political committees may be formed independently of officeholders or candidates, but by definition they contribute directly to five or more candidates for federal office.
Id.
at 185 n. 1,
The City contends that this line of authority remains good law, and that it establishes that “contributions to independent groups
do
have the potential to corrupt.” We rejected a similar argument in
Long Beach.
We explained that in
McConnell,
the Supreme Court “upheld limitations on contributions to political parties because ‘the close relationship between federal officeholders and the national parties, as well as the means by which parties have traded on that relationship’ ” raised the same concerns about quid pro quo corruption that exist with candidate contributions but not with independent expenditures.
Long Beach,
*1121
We therefore determined in
Long Beach
that the contribution limits in
McConnell
and
CalMed
were justified by an anti-corruption interest because the regulated entities had unusually close relationships with the candidates they supported. “[T]he need for contribution limitations to combat corruption or the appearance thereof tends to decrease as the link between the candidate and the regulated entity becomes more attenuated.”
Long Beach,
The City’s attempts to distinguish Long Beach are unpersuasive. It notes that while Long Beach prohibited groups from making any independent expenditures if their dues exceeded the contribution limit, San Diego’s law allows organizations to collect membership fees without counting the dues as political contributions. This is a legally significant distinction between the San Diego and Long Beach laws, but the distinction is relevant only to the level of scrutiny and tailoring analyses. That distinction does not, however, change the decisive point here, which is that the City lacks a sufficiently important governmental interest to justify the law. The district court therefore correctly concluded that Plaintiffs are likely to succeed in showing that ECCO § 27.2936 violates the First Amendment.
2. ECCO § 27.2938: Temporal Ban on Contributions
To support the district court’s conclusion that the City’s temporal ban is constitutional, the City argues that it reduces actual and perceived corruption because those contributions made near an election are clearer expressions of political speech, whereas off-year contributions are more likely linked to business the donor has before the city, thus creating the appearance of quid pro quo “corruption by the sale of influence.” Indeed, the special character of early campaign contributions is so widely recognized that Emily’s List, at one time the nation’s “most successful PAC,” takes its name from the familiar political aphorism that “Early Money Is Like Yeast” because it “makes the dough rise.” Roy A. Schotland, Campaign Finance in Judicial Elections, 34 Loy. L.A. L.Rev. 1489, 1497 n.10 (2001); Emily’s List, Frequently Asked Questions, http:// emilyslist. orglwholfaql.
Plaintiffs misread
Citizens for Clean Gov’t
as holding the City to a higher evidentiary burden in this context that requires a specific showing of actual or perceived corruption. There we held that the district court improperly allowed the City to demonstrate its sufficiently important state interest with “hypothetical situations not derived from any record evidence or governmental findings” and “vague allusions to practical experience.”
*1122
Because “the regulations at issue in
Shrink
were similar to those in
Buckley,
the state’s asserted interest was neither novel nor implausible. Therefore, the Court declined to impose, let alone articulate, a stringent evidentiary burden.”
Citizens for Clean Gov’t,
The heightened evidentiary requirement in
Citizens for Clean Gov’t
stemmed from the novelty of limiting contributions to recall campaign committees, as opposed to limiting the sort of direct candidate contributions in normal campaign cycles addressed in
Buckley.
There is no such need to clarify the analogy to
Buckley
where § 27.2938 operates as a limitation on traditional direct candidate contributions. While
Buckley
addressed limits on the dollar amount of contributions and § 27.2938 restricts their timing, this distinction favors the City because a temporal ban is an even more “marginal restriction upon the contributor’s ability to engage in free communication” than a dollar cap.
Buckley,
Thalheimer alleges in the verified complaint that his speech is burdened by the temporal ban because he wants to solicit and accept contributions now in advance of the 2012 election in order to be competitive against a potential incumbent opponent. However, the district court correctly determined that
Buckley
undercut the argument that a law that treats all parties equally can burden First Amendment rights by favoring incumbents.
See Buckley,
Because this is an open question in our circuit, the district court’s analysis of the temporal limitation relied largely on the Sixth Circuit’s opinion in
Gable
and the Fourth Circuit’s decision in
North Carolina Right to Life, Inc. v. Bartlett,
In
Bartlett,
a political action committee and its president brought a First Amendment challenge to North Carolina’s campaign finance law. One provision prevented lobbyists and political committees that employ lobbyists from contributing to state legislators and candidates while the legislature is in session.
Plaintiffs attempt to distinguish Gable and Patton by emphasizing that those cases involved shorter temporal limitations. The restriction in Bartlett was narrowed to cover a particular group of contributors thought to pose an especially strong threat of quid pro quo corruption, while the restriction in Gable was designed to bolster Kentucky’s public financing regime. These distinctions do not make the essential reasoning of Gable and Patton any less persuasive, however; nor do they demonstrate that the City’s law is not closely drawn to a sufficiently important state interest. The City has articulated an anti-corruption interest that is not novel or implausible, so it is not required to meet a heightened evidentiary burden. 3
The differences between the City’s ordinance and the restrictions upheld in
Gable
and
Bartlett
are understandable given that the laws in those cases addressed partisan state elections, whereas ECCO regulates the financing of nonpartisan municipal campaigns. Moreover, “[w]e cannot determine with any degree of exactitude the precise restriction necessary to carry out the statute’s legitimate objectives,” and “[i]n practice, the legislature is better equipped to make such empirical judgments, as legislators have ‘particular expertise’ in matters related to the costs and nature of running for office. Thus ordinarily we have deferred to the legislature’s determination of such matters.”
Randall,
3. ECCO §§ 27.2950 and 27.2951: Ban on Organizational Contributions
Applying closely drawn scrutiny, the district court correctly determined that Plaintiffs were unlikely to succeed in their general challenge to the ECCO provisions making it unlawful for “non-individuals” to contribute directly to candidates, but likely to succeed in showing that the law is unconstitutional as applied to political parties. 4
a. Non-Individual Contribution Ban
The City contends that the prohibition on contributions by corporations, unions, committees, and other organizations serves the purpose of preventing the circumvention of individual contribution limits. The Supreme Court recognized the anti-circumvention interest in
FEC v. Beaumont,
Plaintiffs argue that
Beaumont
has been overruled by
Citizens United,
and that the anti-circumvention interest is no longer valid. They base this contention on the
Beaumont
Court’s citations to
Austin,
which partially relied on an anti-circumvention rationale to uphold a limit on corporate political expenditures.
See Austin,
Moreover, the
Citizens United
Court’s disapproval of
Austin
came in the context of regulating political expenditures, not contributions. The Court made clear that it was not revisiting the long line of cases finding anti-corruption rationales sufficient to support such limitations.
See Citizens United,
Alternatively, Plaintiffs argue that the City’s ban on contributions by non-individuals is not closely drawn to the anti-circumvention interest. They seek to distinguish
Beaumont
by noting that even though the Court upheld a total ban on corporate contributions, its tailoring analysis took into account that corporations retained the option of establishing political action committees that could make contributions to candidates.
See
More importantly, San Diego’s regulations allow non-individual entities to make unlimited independent expenditures, and with ECCO § 27.2936 enjoined, they can also make unlimited contributions to independent committees that can be used to fund expenditures supporting or opposing candidates.
See Colorado II,
In terms of both the fundamental First Amendment interests at stake and actual influence on the political process, an organization’s ability to directly contribute $500 to a candidate pales in significance to its ability to make unlimited independent expenditures and unlimited donations to political action committees, which can in turn spend unlimited amounts supporting or opposing candidates.
Finally, Plaintiffs argue based on
Citizens United
that the City’s contribution limits violate the First Amendment by discriminating against non-human speakers. The Court held in
Citizens United
that the “Government may not suppress political speech on the basis of the speaker’s corporate identity.”
b. Ban on Contributions from Political Parties
Since the district court issued its ruling, the City enacted a new provision, codified as ECCO § 27.2934, which allows political parties to make contributions to candidates of up to $1,000 per election cycle. Plaintiffs initiated separate litigation challenging the constitutionality of the new provision and requesting a preliminary injunction. The district court denied the request for injunctive relief, allowing the City to enforce the new law pending final judgment. That litigation is not currently before us, but we must consider if the new law has rendered this aspect of the appeal moot.
The City acknowledges that it adopted the new provision in direct response to the district court’s earlier issuance of a preliminary injunction against enforcement of ECCO §§ 27.2950-51 as applied to political parties. We therefore conclude that this change does “not deprive the federal courts of jurisdiction to decide the constitutional question because of the well-settled principle that a defendant’s voluntary cessation of a challenged practice does not deprive a federal court of its power to determine the legality of the practice.”
Jacobus v. Alaska,
As for Plaintiffs’ likely success on the merits, the district court framed the matter as a choice between the Supreme Court decisions in
Colorado II
and
Randall.
Decided in 2001,
Colorado II
involved a challenge to the Federal Election Campaign Act’s limits on political parties’ coordinated expenditures. FECA capped coordinated spending between candidates and parties, based on district size and the relative cost of the media market. For candidates for the U.S. Senate, this ranged from $67,500 to $1,636,438. For candidates for the U.S. House of Representatives, it ranged from $33,780 to $67,560. Parties were also allowed to give up to $5,000 in direct contributions to candidates.
In so ruling, the Court cautioned against treating political parties differently from other speakers for the purposes of analyzing contribution limits.
See id.
at 455-56,
Five years later, however, the Supreme Court suggested that political parties do in fact have a special role requiring unique attention when analyzing contribution limits. In
Randall,
the Court confronted a challenge to Vermont’s campaign finance statute, which included contribution limits for state races of $200 to $400 per candidate, per cycle, depending on the office, which applied equally to individuals, committees, and political parties.
The
Randall
plurality opinion directed courts to identify that threshold by scouring the record to look for “danger signs” that contribution limits are low enough to threaten “democratic accountability.”
Id.
at 248-49,
The plurality also expressed concern that the limits would discourage voters lacking detailed knowledge of state legislative races from contributing small amounts to parties in the hope that the parties would then contribute to like-minded candidates.
Id.
at 257-58,
It remains unclear whether the
Randall
plurality opinion actually supersedes
Colorado II
and holds that political parties must be treated differently than other contributors, or whether the analysis of “special party-related harms” was merely one case-specific factor. The Second Circuit recently concluded that with its focus on the integrity of the electoral process as a whole, as opposed to the expressive interest of the individual campaign contributor, the multifactor test in the
Randall
plurality opinion only “addressed
general
contribution limits that applied to
all
citizens.”
Green Party,
The Supreme Court has directed that when a district court grants a preliminary injunction protecting First Amendment rights, “[i]f the underlying constitutional question is close ... we should uphold the injunction and remand for trial on the merits.”
Ashcroft,
B. Likelihood of Irreparable Harm, Hardship, and Public Interest
Even where a plaintiff has demonstrated a likelihood of success on the merits of a First Amendment claim, he “must also demonstrate that he is likely to suffer irreparable injury in the absence of a preliminary injunction, and that the balance of equities and the public interest tip in his favor.”
Klein v. City of San Clemente,
As to irreparable harm, the district court followed a long line of precedent establishing that “[t]he loss of First Amendment freedoms, for even minimal periods of time, unquestionably constitutes irreparable injury.”
Klein,
The district court separately determined that the public interest in upholding free speech and association rights outweighed the interest in continued enforcement of
*1129
these campaign finance provisions.
See Sammartano v. First Judicial District Court, in and for County of Carson City,
IV. Conclusion
For the foregoing reasons, we AFFIRM the district court’s decision to grant in part and deny in part Plaintiffs’ request for a preliminary injunction. Each party shall bear its own costs on appeal.
AFFIRMED.
Notes
. Since the district court entered its order, the City enacted a new law allowing political parties to contribute up to $1,000 per election to candidates in municipal elections. Plaintiffs challenged the new provision in a separate action and sought a preliminary injunction against enforcement pending trial, which the district court denied. The constitutionality of this new provision is not before us.
. The Supreme Court has recognized that other governmental interests may legitimately support campaign finance regulations that do not directly limit contributions or expenditures.
See Buckley,
. The City apparently made a tactical decision not to introduce specific evidence to support its anti-corruption interest at this early stage of the litigation so as to emphasize Plaintiffs' burden as the moving parties seeking preliminary injunctive relief. We would note, though, that our own case law contains a vivid illustration of corruption in San Diego municipal government involving campaign contributions timed to coincide with the donors’ particular business before the city council.
See United States v. Inzunza,
. Plaintiffs acknowledge that the closely drawn standard of review is appropriate for contribution limits, but suggest that contribution bans should be treated differently. However, the Supreme Court has held that while it is “not that the difference between a ban and a limit is to be ignored ... the time to consider it is when applying scrutiny at the level selected, not in selecting the standard of review itself.”
FEC v. Beaumont,
. Therefore, we follow the plurality opinion as persuasive authority, though "not a binding precedent.”
Texas v. Brown,
