MoveOn Axes Big-Money Fundraising Arm

One day after Barack Obama became the first candidate since Watergate to reject general election public financing, a prominent liberal grassroots group has disbanded its 527 operation. "We, like Senator Obama, believe that this election can be won by ordinary Americans giving small donations,” MoveOn said in a statement. This cuts MoveOn off from labor, foundation and big-donor money, Talking Points Memo reports.

The change, which allows the group to keep raising small amounts through its PAC, may soften the impact of Obama’s move yesterday and put political pressure on the GOP to control negative third-party ads, 527s' stock in trade. “The hope is that Republicans will match this,” said a rep for MoveOn, which raised $20 million for the 2004 general election. (More Barack Obama stories.)