Trump's Fundraising and Legal Expenses
Understanding a candidate's campaign finances used to be a straightforward matter. You would look at their filed report, note the amount raised and from whom, and note the amount spent and on what. It's different now because PACs of different kinds have entered the game.
The fundraising and spending rules differ for these PACs, depending on the PAC type. There are various types of PACs (leadership, super, connected, non-connected, issue, trade association). Reporting dates differ too, as do contribution limits and disclosure requirements. Some PACs are under the direct control of the candidate. Others are prohibited by law from coordinating their activities with the candidates.
Certain court rulings and changes in campaign finance laws made this possible. While it is not impossible to track and understand the massive amounts of money flowing in and out of campaigns and their related entities, it has become more difficult because the big picture is more complex. That said, the July 31, 2023 reporting deadline has now been reached. This gives us the ability to view all submitted reports and grasp the big picture year-to-date.
Highlights
For reference,
Biden and the Democratic Party work together to raise funds. Their main entity is a joint fundraising committee that raised $72 million year to date. It has $77 million cash on hand, with 750,000 small donors, contributing an average of $37 each.
Unlike Trump, Biden has no primary opponent of consequence. Accordingly, he has few campaign expenses at present. Also, Biden does not have the legal expenses Trump has. More on that below.
Trump has a far more complex array of campaign finance entities. For reasons unknown, a lot of money has been shifted between them. Sometimes this money has been shifted from one entity to another, and then back to the original entity. Nevertheless, it is possible to discern two major themes.
- While the amount is far less than Biden's amount, Trump has raised a lot of money, including a lot from small donors.
- The top expense is money paid to cover Trump's personal legal bills and those of certain defendants allied with Trump.
Trump's joint fundraising committee brought in $53 million year to date, but he has spent more than that. The spending includes $21 million for legal bills. His fundraising pace is accelerating with $34 million of the $54 million being raised in recent months.
One of Trump's entities is the Save America PAC. This Trump-controlled PAC began 2023 with $18.3 million and now has $3.6 million cash on hand. This PAC began 2022 with $105 million cash on hand. Last year, Save America sent $60 million to the Make America Great Again PAC (a super PAC not controlled by Trump) to be spent on TV commercials. But, in an unusual move, and for reasons unknown, Save America has asked the MAGA PAC to "refund" the $60 million.
The MAGA PAC has so far returned $12.25 million of the requested $60 million. The $12.25 million was not returned all at once. It was returned in a series of smaller payments made on a seemingly random schedule.
The MAGA PAC raised, $13.1 million year to date, mostly from small donors. It entered July with $30 million on hand.
All in, it can be said that Trump's campaign finance effort is a dual-purpose endeavor. He and his allies are raising money to simultaneously pay the traditional expenses of a political campaign, and also pay Trump's personal legal expenses, and those of other defendants allied with Trump. These legal expenses are the largest spending category of all. Over $20 million has been so spent to date on legal expenses. This number is expected to grow as Trump finds himself busiser and busier with multiple indictments and court actions.
Some of Trump's fundraising and money-transfer practices are questionable. Some observers say they are illegal. A grand jury is known to be investigating some of this. It seems likely that Trump opponents or critics will file complaints with campaign finance authorities as well ("unlawful financial coordination"). No charges or formal allegations have yet been made regarding Trump's campaign finances, but it would not surprise me to see some emerge soon.
Whatever the state of Trump's campaign finances may be, there is no danger of him running short of money to fund his campaign. He has said he will spend his own money to fund his campaign if that becomes necessary.
Note that it is legal for campaign committees and some of these PACs to pay the legal bills of certain people. While some have criticized the ethics and/or conflicts of doing so, this is a common practice in corporate America and elsewhere. As long as the spending rules are followed, this is a legal thing to do.
Related: Trump recently established
a legal defense fund. Money from this fund will be used to pay the legal expenses, not of Trump himself, but of certain co-defendants and others Trump wishes to help. This is not a political fund and the rules of a legal defense fund differ from those of a PAC or campaign committee. At present, it is unclear how the legal defense fund will be funded.
A New Entity: Backed by conservative billionaire Charles Koch, the Americans for Prosperity Action PAC has emerged. It has raised over $70 million to date. It is spending some of that money on anti-Trump ads in early voting states. This PAC says it will back a Republican (not yet named) for president, but not Trump.