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The bill, co-sponsored by Rep. Virginia Foxx, R-5th, would eliminate the box on tax returns that taxpayers can check to direct that $3 of their federal taxes go to the Presidential ElectionCampaign Fund, which helps pay for presidential campaigns and party conventions.

Candidates can choose not to accept financing from the fund, which Barack Obama did in 2008.

If the bill becomes a law, the fund would be closed, and any leftover money would be transferred to the U.S. Treasury Department's general fund.

Foxx, whose district includes parts of Forsyth County, said in a news release that the bill would help reduce the federal deficit.

"Bankrolling presidential campaigns during an era of record budget deficits is not a good use of taxpayer dollars," she said. "We've got to look everywhere we can in the budget for savings, and the elimination of subsidized presidential electioneering is a common-sense step."

Rep. Mel Watt, a Democrat who represents parts of Winston-Salem and who voted against the bill, could not be reached Wednesday.

Under the law, presidential candidates qualify for matching funds from the government once they have met certain requirements during the primary elections. In accepting the subsidies, the White House hopefuls also must agree to certain restrictions.

Party nominees for president are eligible for money after the conventions as long as they do no fundraising on their own during the general election campaign. Additionally, the conventions are financed through thepresidential fund.

The system was put into place as part of reforms that followed the Watergate scandal of the 1970s — illegal activities sanctioned by then-President Richard M. Nixon's re-election committee and funded by unregulated donations that went through his campaign treasury.

The Congressional Budget Office, which on Wednesday projected that the national deficit would reach $1.5 trillion this fiscal year, estimated the bill would reduce spending by $617 million over the next 10 years.

The bill was approved 239-160, with the vote divided mostly along party lines. Ten Democrats, including Rep. Heath Shuler, who represents North Carolina's 11th District, voted with Republicans for the bill.

While Republicans referred to Obama's decision to opt out of the system two years ago, Democrats countered that a GOP hero had benefited.

Rep. David Price, D-4th, said Ronald Reagan had less than $44,000 in his campaign treasury at the end of January 1976, a tiny fraction of the amount available to then-President Gerald R. Ford. Reagan benefited from $2.2 million in public money that helped sustain his challenge all the way to the party convention, he said.

Price and other Democrats advanced an alternative to leave the current system in place but impose fresh reporting requirements on foreign countries, companies and individuals who contribute to campaigns. It was rejected 228-173.

The White House issued a statement in advance opposing the legislation but stopped short of threatening a veto.

The bill's prospects are clouded in the Senate. Jon Summers, a spokesman for Majority Leader Harry Reid, D-Nev., issued a statement siding with House Democrats on the issue. "Congress should focus on improving the system so that it protects our democracy, instead of giving more and more power to special interests," he said.

Foxx was one of 20 representatives who co-sponsored the bill. Rep. Renee Ellmers, a Republican who represents North Carolina's 2nd District, was also a co-sponsor.

All but one of North Carolina's Republican representatives voted for the bill.