Trump Diverts Campaign Contributions to PAC for Legal Expenses

Former President Donald J. Trump is facing multiple investigations, leading him to redirect a larger portion of his fundraising efforts away from his 2024 presidential campaign. Instead, he is transferring the funds to a political action committee called Save America, which he has used to cover his personal legal fees. This shift has raised concerns about how Trump plans to pay for his mounting legal bills, especially as he prepares for multiple criminal trials. Initially, 99 cents from every dollar raised online went to his campaign while one cent went to Save America. However, around February or March, Trump adjusted the split so that his campaign receives only 90% of donations, while 10% goes to Save America.

This change could have significant implications, as it has potentially directed at least $1.5 million to Save America based on fundraising figures. By utilizing the PAC, Trump has managed to have his supporters cover his legal expenses instead of paying for them himself. Steven Cheung, a spokesman for Trump, provided a written statement explaining that the campaign amended the fundraising split to ensure each dollar is spent in the most cost-effective manner. He added that the campaign pays the PAC for access to the list of email addresses and phone numbers of Trump’s supporters.

The rules regarding what political action committees and candidate campaign committees can pay for are complex and somewhat disputed. Generally, a PAC cannot spend money directly on a candidate’s campaign, while a campaign committee cannot directly pay for expenses benefiting the candidate personally. Save America has been covering legal bills related to investigations into Trump and his allies for over a year. In 2022, the PAC announced it had $122 million in funds. However, by the beginning of 2023, their cash on hand had decreased to $18 million, with the remaining funds spent on various expenses.

It is worth noting that Trump’s rivals, such as former Vice President Mike Pence and Senator Tim Scott, do not split their online proceeds with an affiliated PAC. They direct all the proceeds to their campaign committees. Trump’s decision to split his funds raises concerns about potential illegal use of campaign money, especially considering the use of the leadership PAC to cover legal expenses.

As Trump’s legal bills continue to grow, he has adjusted his legal strategy to delay proceedings. However, this strategy could lead to substantial expenses as he will require multiple teams of white-collar lawyers to defend him in federal and criminal cases. Moreover, he may face additional indictments, adding to his legal and financial burdens. It remains uncertain whether Trump will attempt to use his campaign funds to cover legal expenses and whether such a move would violate spending rules. Some experts argue that using Save America donations for personal legal expenses would be considered an excessive contribution, while others claim campaign funds would qualify as personal use.

To conserve resources, Trump has been primarily attending events organized by other groups instead of organizing large-scale rallies, which are costly. However, the surge in fundraising following his indictments may overshadow a general slowdown in donations. Trump’s campaign has been heavily reliant on online fundraising, with only one major campaign fundraiser that raised $2 million. The state of his PAC and campaign’s finances will be disclosed in federal filings in July.

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