Nancy Cook, Bill Allison and Joshua Green | (TNS) Bloomberg News
WASHINGTON — Donald Trump has a strong base and an advantage in swing states. However, he doesn't have nearly as much money as his rival, President Joe Biden.
Financial problems have become a significant weakness for the expected Republican nominee as he enters what's predicted to be the most expensive presidential election in history. Trump has accumulated millions in legal expenses and faces a Monday deadline to post bond for a $454 million civil judgment, making the issue worse.
The difference in the two candidates’ bank accounts is clear. According to the president’s campaign, Biden and the Democratic Party had $155 million at the start of March, more than three times the $50 million that Trump and the Republican National Committee had, according to their latest Federal Election Commission reports. Even with the addition of Trump’s allied super PAC, his total comes to $76 million, still well below Biden's amount.
Other supportive super PACs that previously backed Trump and aid Republican congressional candidates have $26 million on hand, according to the latest federal filings. In contrast, Biden-allied super PACs have $64 million, with pledges to spend at least $900 million to support the president’s reelection.
The former president’s team is working to narrow the gap. Trump's national finance director Meredith O’Rourke has increased efforts to reach potential donors, according to those familiar with the initiative. The aim is to secure donations now to demonstrate that Trump has a viable campaign fundraising system.
A Trump spokesperson did not respond to a request for comment.
Trump is personally contacting wealthy donors, according to individuals familiar with the appeals. Potential contributors have been invited to dine at Trump’s Mar-a-Lago club in Florida or participate in fundraisers at private residences. On Super Tuesday, the main Trump super PAC organized a Mar-a-Lago fundraiser for high-net-worth donors, including New York Jets owner Woody Johnson.
“They have their foot on the gas because they have some ground to make up,” Henry Barbour, a RNC member, said about the fundraising efforts.
People familiar with the matter anticipate that Trump's allies and advisors will not match Biden’s substantial fundraising operation. However, Trump's aides are confident that he will raise enough to compete in November. This is a familiar situation for Trump, who won in 2016 despite raising about half of Hillary Clinton's and her allies' total.
Reluctant donors
Trump’s unpopular image in wealthy coastal communities and the four criminal cases against him have hindered his fundraising.
A Republican with strong ties to Wall Street said that other Republicans he knows are seeking to give to organizations that do not reveal their contributors’ identities. They are unwilling to face scrutiny from their employees and the media regarding Trump's recent controversial remarks about immigrants, minorities, and NATO allies.
Donors are also questioning whether their money will cover Trump’s legal expenses. Trump has spent $64 million on lawyers and is on course to deplete the funds he has used to pay them in the upcoming months. This means he will need to turn to the RNC — where leaders have said they won’t pay — or rely on donors to help offset the costs.
According to one person, many Wall Street donors are now supporting Republicans who are trying to take back control of the Senate. Only a few of them like Biden, but they are cautious about giving financial support to Trump again.
Early fundraising data also indicates that Trump’s once powerful fundraising from small donors might be weakening. In 2023, he received $50.4 million from small donors, which is about $82 million less than what he got in 2019 when he was already in office and had no primary opposition.
Trump’s lack of campaign funds has led to a less busy event schedule.
His team is keeping a close eye on spending and choosing carefully when and where to hold rallies, sometimes using smaller venues. By working with the same production company, the campaign has reduced rally costs. At this point in 2020, Trump’s staff is about half the size it was.
Money push
Major donors could help narrow the money gap with Biden. Hedge fund manager John Paulson is organizing a fundraiser on April 6 in Palm Beach, which one person familiar with the event called a positive sign for Trump’s money operation.
More than 50 people are expected to attend, including some who have recently reconnected with Trump. This indicates that Trump is gaining support from some in the donor class who were previously hesitant to support him.
Among the anticipated attendees are Republican mega-donors Rebekah and Robert Mercer, who had withdrawn from politics, and hotel developer Robert Bigelow, Ron DeSantis’s biggest primary donor who has committed to giving Trump $20 million. Another one-time DeSantis supporter, investor Omeed Malik, is also listed on an invitation.
Las Vegas developer Steve Wynn, Florida Crystals Corp.’s Pepe Fanjul, and former Commerce Secretary Wilbur Ross also intend to be there. The cost is $814,600 per person — the maximum donation to the campaign, RNC and state parties — to sit at Trump’s table and get a photo, according to the invite. For $250,000, attendees can get “VIP dinner seating, reception and photo opportunity.”
People familiar with the plans said that hosting small dinners with wealthy donors and the former president will be a key feature of the campaign’s fundraising.
New groups
Other conservative organizations could offer an alternative for donors concerned about potential damage to their reputation from supporting the former president’s campaign, or their money being redirected to his legal defense.
Secretive groups, such as activist Leonard Leo’s Marble Freedom Trust, which do not have to disclose donors but can contribute to super PACs, could experience an increase in donations. New Trump-allied super PACs are being formed to attract hesitant donors. A representative for Leo did not immediately respond to a request for comment.
Paying for Trump’s lawyers is not a worry for all of his supporters.
“If the guy wants to win, I don’t care where the money goes,” said New York grocery magnate John Catsimatidis.
——-
(With assistance from Hadriana Lowenkron, Stephanie Lai and Amanda Gordon.)
___
©2024 Bloomberg L.P. Visit bloomberg.com. Distributed by Tribune Content Agency, LLC.
