Sen. Hillary Rodham Clinton's (D-N.Y.) move to the Department of State could remove a significant fundraiser for Democrats.

Clinton, whom President-elect Obama has nominated as secretary of State, has raised and contributed millions of dollars to candidates and party committees since her election in 2000, and the former first lady has never been shy in traveling around the country to lend her fame to fellow Democrats.

"If you were organizing an event with her, you know you can put a number next to her name because of her star power and network," said Chris Lehane, a Democratic strategist. "Up until you had Obama, she was in a category all by herself."

Now that could change. While campaign finance lawyers contacted by The Hill said no laws would prevent Clinton from keeping her campaign committees open, cabinet officials typically refrain from overt political campaigning after their confirmation.

"When a cabinet appointment is acting as a surrogate for a presidential reelection campaign, they leave the room when the pitch is being made," said Kenneth Gross, a partner at Skadden Arps Slate Meagher & Flom. "You are allowed to give. You are allowed to fundraise. You just have to be a wallflower."

Clinton, who is readying for her confirmation hearing before the Senate Foreign Relations Committee, has not made a decision on whether to shutter her campaign committees.

"We will be addressing those questions in due course," said Philippe Reines, Clinton's spokesman.

Clinton's leadership political action committee, HillPAC, is one of the largest contributors to other candidates. She has funneled more than $2.9 million to candidates and party committees at the federal and state level since the 2002 election cycle through the PAC. HillPAC and Clinton's Senate campaign committee, Friends of Hillary, have hosted nearly 1,000 events and fundraisers for national committees, state parties and almost 120 candidates across the country, according to Clinton aides.

After losing the Democratic nomination to Obama, Clinton became a prominent surrogate for her former rival. She headlined more than 70 events and fundraisers in close to 20 states. She also raised almost $1.2 million for the Democratic Senatorial Campaign Committee in 2008 through events in California, Washington, D.C., Massachusetts, and North Carolina, according to her aides.

Clinton has several options. She could close down her committees and give their funds to charity or to national party committees, such as the DSCC or the Democratic National Committee. But campaign finance rules would place a $15,000 ceiling on any contribution from her leadership PAC to a party committee.

Clinton could also suspend her committees and keep their accounts open while serving at State. "The money could just sit there," said Rob Kelner, who heads the election and political law practice group at Covington & Burling.

If Clinton continued to fundraise and contribute to candidates, however, she could attract negative attention for what would be unusual activity by a cabinet official.

"I am sure she would anticipate news stories on her PAC if she is contributing to candidates during her time as secretary of State, which would be an awful distraction," Kelner said.

The Hatch Act, a federal law intended to prevent the use of government resources for political purposes, and other rules limit fundraising and campaign activities by federal workers. Most Senate-confirmed political appointees, including cabinet officers, however, are exempt from the Hatch Act. They are prohibited from soliciting government employees for campaign contributions, but may still raise funds for candidates.

Another complication is that Clinton still has debt from her presidential campaign. According to a Federal Election Commission report released on Dec. 20. Clinton's campaign remained close to $6.4 million in debt at the end of November.

While Democrats will miss Clinton's fundraising prowess, many see a potential replacement in Caroline Kennedy. President John F. Kennedy's daughter is campaigning for an appointment to Clinton's Senate seat by New York Governor David Paterson (D).

Kennedy's endorsement of Obama during the Democratic presidential primary helped establish the Illinois senator's bona fides with the Democratic establishment. Her prowess as a fundraiser already has been impressive. A well-known philanthropist, Kennedy has raised more than $65 million in private support for New York City's public schools.

"The moment it becomes official, she becomes a superstar," Lehane said about Kennedy if she became a senator.

While Lehane said Kennedy could not match Clinton's fundraising abilities immediately, her name recognition alone could help other Democratic candidates with campaign funds for the 2010 midterm elections. That's a key selling point for Kennedy, who could help other New York politicians, including Patterson, who will be on the 2010 ballot.

"Does that mean she can rise to the level of going out to the states and helping with your midterm candidates? Absolutely," Lehane said. "Everyone wants a little bit of Camelot in their state."

By Kevin Bogardus, The Hill, December 25, 2008