Trump Diverts Donor Money to Mounting Legal Fees as He Faces Multiple Lawsuits and Charges
Former president Donald Trump is facing numerous lawsuits and 91 felony charges across four criminal indictments, leading to mounting legal fees. According to campaign disclosures filed with the Federal Election Commission, Trump has been diverting significant sums of donor money to cover these expenses. While his victories in Iowa and New Hampshire suggest a smooth path toward the Republican presidential nomination, the financial burden of legal battles looms overhead.
Here are the key takeaways from the recent filings:
Trump’s Legal Spending
In 2023, two of Trump’s committees, Save America leadership PAC and the Make America Great Again PAC, spent a total of $55.6 million on legal bills. Of this amount, $29.9 million was spent in the second half of the year. Despite these significant expenditures, the Trump campaign still had over $33 million in cash on hand at the end of last year, with Save America leadership PAC holding about $5.1 million.
The majority of Trump’s campaign funds come from small dollar donors, with 90 cents of each dollar going to his campaign committee and 10 cents to the Save America leadership PAC. This PAC, formed by Trump as he falsely claimed election fraud in 2020, has primarily been used to pay legal bills. Trump’s advisers argue that he is also assisting in covering lawyers’ fees for his advisers and associates to prevent their “financial ruin.”
Peak Legal Spending and Transfers
Legal spending reached its peak in July when special counsel Jack Smith issued a superseding indictment in the Mar-a-Lago classified documents case. It further increased just before Trump’s indictment on August 1 in a Georgia election interference case. Trump-supporting PACs paid $6.6 million to various legal firms in July.
As the funds in the Save America account dwindled, Trump’s operatives started transferring money between different committees, including those left over from his 2020 presidential campaign. One such committee is the Make America Great Again PAC, which received $11.8 million from Save America throughout 2023, primarily used for legal fees. Additionally, at the beginning of his 2024 presidential campaign, Trump transferred $60 million to his main super PAC, MAGA Inc. However, some of this money has since been refunded back to Save America, possibly to alleviate its cash crunch caused by growing legal bills.
The Patriot Legal Defense Fund
The Patriot Legal Defense Fund, focused on paying for lawyers for Trump associates, disclosed payments of $221,000 to Brand Woodward Law and $150,000 to Gibson Dunn and Crutcher in December. These firms have represented Trump associates such as Waltine “Walt” Nauta and Dan Scavino. The fund also spent $18,136 on hosting a banquet at Mar-a-Lago in December.
Funding Challenges for DeSantis
Florida Governor Ron DeSantis and his allied committees initially posed a significant fundraising threat to the Trump campaign. However, as DeSantis’s candidacy waned amid internal power struggles, former U.N. ambassador Nikki Haley gained traction and attracted donors who had previously supported DeSantis. Reports show that Never Back Down, the super PAC funding much of DeSantis’s operation, raised $14.5 million in the second half of 2023. This was considerably less than the $130 million amassed in the first half of the year.
Never Back Down spent over $130 million throughout 2023 and ended the year with less than $15 million in cash on hand. To redirect funds, approximately $10 million was transferred late in the race to a new super PAC. DeSantis’s campaign raised about $6.7 million in the fourth quarter and ended the year with close to $10 million cash on hand. However, much of this was not available for the primary fight against Trump and Haley.
Haley’s Deep-Pocketed Donors
Former U.N. ambassador Nikki Haley’s campaign and the allied super PAC, SFA Fund, Inc., received a significant influx of cash in the second half of 2023. As Haley gained popularity in national polls, billionaires such as Paul Singer and Ken Griffin donated $5 million each to SFA Inc. during the fourth quarter. Prominent Jewish donors, including Jan Koum, founder of WhatsApp, and insurance executive Patrick Ryan, also contributed to her effort.
SFA Fund spent $63.7 million between July and December, ending the year with approximately $3.5 million in cash on hand. However, her advisers claim that they are raising money rapidly this year and will be able to support Haley through future contests.
Biden’s Cash Advantage
President Biden’s campaign committee, Biden For President, raised $33 million in the third quarter and ended the year with $45.9 million in cash on hand. Unlike Trump, Biden did not have to spend his campaign cash in a competitive primary, facing only nominal opposition. Biden’s joint fundraising committee, the Biden Victory Fund, reported over $69 million in contributions. In total, Biden’s committees and the Democratic National Committee ended the year with a war chest of $117 million.
Looking Forward
While Democrats currently hold a cash advantage, Trump has the potential to tap into new sources of donations through fundraising agreements with the Republican National Committee and state committees. TJ Ducklo, senior advisor for communications on the Biden campaign, highlighted the difference in spending approaches between Trump and Biden. While Trump seemingly “lights money on fire” paying his expenses, Biden’s campaign is focusing on engaging with voters and building the infrastructure for the upcoming election.
