A pro-Trump super PAC has been making significant monthly transfers totaling millions of dollars to the former president’s fund to cover his escalating legal expenses.
These transfers have been crucial in sustaining the fund, known as Save America, which has faced substantial financial strain due to mounting legal bills following a New York grand jury indictment of former President Donald Trump and subsequent legal battles.
Save America, established shortly after Trump’s defeat in the 2020 election, operates as a “leadership PAC,” allowing it to accept limited individual donations of $5,000 per election cycle while having relatively few spending restrictions.
The funding for Save America primarily originates from Make America Great Again Inc. (MAGA Inc.), a super PAC formed in 2022 with the ability to raise unrestricted funds.
Initially, Save America focused its spending on various expenses related to Trump’s public engagements and contributions to allied organizations, including MAGA Inc. However, the fund’s allocation toward legal fees, covering both civil and criminal cases involving Trump, has soared over the past couple of years.
In response to Save America’s financial strain, MAGA Inc. has intervened by providing regular bailouts to the tune of $5 million per month since July of the preceding year, totaling $40 million, along with an additional $12.3 million in transfers during May and June.
Remarkably, these payments to Save America have exceeded MAGA Inc.’s spending on independent expenditures, such as advertising, since its inception, emphasizing the fund’s critical role in supporting Trump’s legal defense.
The unique nature of these transfers has drawn attention from experts in campaign finance law, with Daniel Weiner of the Brennan Center for Justice describing the arrangement as unprecedented.
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Typically, leadership PACs like Save America are designed to support allied candidates, but the ambiguity in regulations has allowed them to serve as de facto slush funds, raising concerns about potential misuse of funds for personal benefit.
Save America’s hefty legal expenditures, exceeding $64 million, have primarily financed Trump’s extensive legal battles, involving payments to numerous law firms representing him in various legal proceedings.
While the specifics of these payments remain undisclosed, it’s evident that a significant portion of Save America’s resources has been channeled into Trump’s legal defense efforts.
The financial strain resulting from legal expenses has affected Trump’s fundraising capabilities for his 2024 presidential campaign, trailing behind President Joe Biden’s fundraising efforts.
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Despite maintaining a strong base of grassroots donors, Trump’s focus on legal battles has diverted resources away from campaign activities, posing challenges in fundraising and organizational efforts. Looking ahead, Trump faces the challenge of sustaining his legal defense without exhausting the resources of MAGA Inc.
While the establishment of new fundraising committees like the Trump 47 Committee could provide additional avenues for financing, the legal complexities surrounding campaign finance regulations remain a focal point of scrutiny.
As Trump navigates through ongoing legal battles and prepares for potential future campaigns, the management of his financial resources will continue to be a subject of intense scrutiny, shaping the trajectory of his political endeavors in the coming years.
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