Pro-Trump super PACs are transferring millions of dollars each month to the former president's foundation to pay for mounting legal costs. The fund is kept afloat by tens of millions of dollars in legal fees over the past year since a New York grand jury indicted former President Donald Trump and is facing a series of criminal charges against him. This was the first civil judgment. .
Save America, which was launched days after Trump lost the 2020 presidential election, is a type of fund called a “leadership PAC” that can receive only $5,000 from each donor per election cycle, but has no control over how the money is spent. has almost no limits. The project is funded by Make America Great Again Inc. (MAGA Inc.), a super PAC founded in 2022 with unlimited funding.
To date, Save America's largest expenditures have included audiovisual costs for President Trump's public appearances and donations to other organizations, including MAGA Inc. It has increased rapidly over the past two years.
So MAGA Inc. stepped in to bail out Save America by paying it back. According to Federal Election Commission records, the company sent $5 million to Save America at the beginning of each month between July and February of last year, on top of $12.3 million sent by MAGA in May and June. In addition, a total of $40 million was transferred.
That's more than MAGA Inc. has spent on its own spending, including ads against President Trump and opponents like South Carolina Gov. Nikki Haley, since it began operations in 2022. The total since the beginning of 2023 was $50.5 million, and the total since the beginning of 2023 was $52.3 million. Transferred to Save America in May.
Preparing to vote: See who's running for president and compare their positions on important issues with our voter guide
“It's hard to think of another example where this has happened,” said Daniel Weiner, director of elections and government at the Brennan Center for Justice, a New York University-based democracy law advocacy group.
MAGA Inc. is sending the funds to Save America to refund the $60 million it donated to the wasted MAGA Inc. in 2022. It is illegal for a super PAC to simply give unlimited donations to Save America, and Save America must comply with federal contribution limits.
“This is certainly unusual,” Weiner said. “It is unusual for a leadership PAC to make a huge donation to a super PAC and then implement such a bizarre system of refunds, and this is not something we normally see.”
Legal spending related to President Trump's civil and criminal cases
Despite raising more than $200 million since its founding, the move was no windfall for Save America. PAC spent more than $64 million on litigation costs in 2023 by the end of the report. Other funds went to candidates in the 2022 election, outside organizations with ties to former White House aides, and staffers including the former first lady's fashion designer.
Although public records do not reveal what specific work law firms were paid for, records show Save America paid more than 70 different lawyers and law firms. Many of the payments are listed in court documents representing Mr. Trump in civil and criminal cases. A lawyer who represented a Trump aide at the committee on Jan. 6 also said Save America had an agreement with him. Most recently, three of the four companies that filed court documents saying he was unable to pay a $454 million judgment in a fraud case against the Trump Organization: Haba Madaio & Associates LLP; Robert & Robert PLLC, Continental PLLC) to save America's highest paying company.
“He appears to be spending an incredible amount of his campaign money on legal costs that far exceed anything that would be considered campaign-related,” said Michael Kang, a law professor at Northwestern University. Until much later, what lies at the root of all this. ”
Leadership PACs like Save America are designed to help House and Senate leaders fund their allies' campaigns. But the law has gray areas, and the Federal Election Commission has refused to shut it down, making it a de facto slush fund that has supported the lavish lifestyles of public officials.
“I don't think these funds were intended to be essentially a slush fund that could be used for the personal benefit of the sponsoring officers,” Wiener said. “I'm not saying the law was broken. I think this is kind of a legal gray area.”
PACs regularly hire lawyers, usually for other purposes. Lawyers often file documents with the Federal Election Commission, help candidates get on the ballot in various states, and assist with recounts.
The committee on Jan. 6 accused Trump of raising money for the “Official Election Defense Fund” in the days after the 2020 election, but that fund does not exist and was instead called “Save America.” ” was donated to. But Trump most recently used his legal troubles to solicit money from his supporters, money that is now being used to fundraise for his 2024 campaign and “Save America.” It is being said. (Campaign funds may not be used for personal expenses.)
After the March indictment, Trump's fundraising group sent fake photoshopped mugshots in emails soliciting donations. Since Wednesday, President Trump's main fundraising arm has sent a message to his supporters that “Democrats are trying to seize my assets,” and New York Attorney General Letitia James has ordered Trump's $454 million judgment. It noted that personal assets can be seized if a dollar judgment is not paid. organizational case.
To stave off collections while he appeals the verdict, Trump needs to post $454 million or bail by Monday, which his lawyers say is “practically impossible.” There is. But help may be on the way. A just-announced deal to take his social media platform, TruthSocial, and its parent company public could generate more than $3 billion for him.
Meanwhile, much of Save America's funding comes from the public. The fundraising arm raised $50.5 million in donations under $200 in 2023 alone, according to the latest information available from the Federal Election Commission.
Trump's 'resource depletion' keeps Biden behind
Huge legal bills have delayed Mr. Trump's 2024 campaign fundraising, both with his own funds and those of the Republican National Committee, and there is pressure to save Mr. Trump from legal jeopardy. There is.
Republican consultant Alex Conant said money is less important in presidential politics than it used to be. A USA TODAY/Suffolk University poll conducted March 13 showed Mr. Trump leading Mr. Biden by 2 points.
But the election is likely to be decided by a small number of votes, and a significant spending advantage could make a difference, he said, adding that President Trump's legal problems are “a distraction and a drain on resources.” Ta.
President Joe Biden's campaign raised $21.3 million and spent $6.3 million in February, increasing cash from $56 million at the end of January to $71 million at the end of February. During the same period, the Trump campaign raised $10.9 million and spent $7.8 million, increasing cash to $33.5 million from $30.5 million in January.
The numbers show that the Biden campaign has $37.5 million more in cash than the Trump campaign, which would mean that if the former president did not spend more than $64 million on legal fees and instead used that money. If I had put it in a campaign account, that means I would have had more money. He has been with the bank more than the current president.
“I think both sides are going to have a lot of money, but if Mr. Trump has to devote a lot of resources to legal issues, that money won't be spent on getting votes.” said Conant. Sen. Marco Rubio's 2016 presidential campaign.
The Democratic National Committee, which is supporting Biden's re-election, continues to outnumber the Republican National Committee, which has a strong base of Trump supporters. The DNC had $26.5 million in cash at the end of February, compared to the RNC's $11.3 million.
Campaign accounts and party committees provide an incomplete picture of the financial resources available to support candidates. The fundraising vehicles used by both candidates, also known as joint fundraising committees, are not required to provide financial updates until April 15.
The Biden campaign announced this week that it had $155 million in available cash after raising $53 million in February through committees and the Democratic National Committee. The Trump campaign has not released figures for the joint fundraising committee.
President Trump and the RNC:Lara Trump says Republicans are ready to pay for Donald Trump's legal costs
Trump will now need new ways to pay for his lawsuits
Mr. Trump will now need a new funding plan to pay for his legal costs. That's because MAGA Inc. can only refund up to $60 million to Save America. By the end of February, $52.3 million had been refunded. At current rates, the remaining $7.7 million will be depleted in mid-April.
MAGA may have the funds. The super PAC saw an uptick in fundraising in February, raising $12.8 million last month, up from $7.4 million in January, and has $25.5 million in available cash. The increase is also thanks to a $5 million donation from Las Vegas tycoon Robert Bigelow, who believes aliens exist on Earth.
“You might ask, 'Why aren't they getting their legal fees paid by super PACs?'” says Weiner of the Brennan Center in New York. “But for some reason they must feel it's legally better to pay the bill from the leadership PAC.”
A new fundraising tool could help. His allies have created a new community fundraising committee called the Trump 47 Committee. Funds will be divided among the Trump campaign, Save America, the Republican National Committee, a PAC called the 2024 Presidential Republican Candidates Fund, and Republican committees in 37 states, Guam and the District of Columbia.
Contributor: Aisha Bagki