Saturday, June 22, 2024
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Trump Faces Major Financial Difficulties Amid Ongoing Legal Woes

Trump Faces Major Financial Difficulties Amid Ongoing Legal Woes
Source: Pinterest

Trump Faces Major Financial Difficulties Amid Ongoing Legal Woes

Source: Pinterest

It’s difficult to envision Donald Trump facing financial difficulties. While the former president and business mogul may not be personally struggling for money, his campaign is encountering challenges.
In recent months, Trump has allocated millions of dollars from his campaign funds toward his legal trial. Now, it appears that there may not be sufficient funds available for the final months leading up to the 2024 election.

Trump Has Spent $51.2 Million on Legal Fees

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Legal proceedings can indeed be costly, with expenses ranging from lawyers’ fees to various legal expenses. On average, the typical American might spend around $30,000 to defend themselves in court.
However, Donald Trump’s legal expenses far exceed this average. According to Bloomberg, his criminal case has incurred costs totaling $51.2 million in legal expenses so far. This amount is approximately 1,700 times higher than what the average American might spend on legal defense.

Trump Isn’t Using His Money to Pay His Legal Fees

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Forbes has reported that Donald Trump’s net worth is an impressive $2.6 billion as of 2024. However, despite having more than enough wealth to fund his trial, he is not utilizing his vast fortune for this purpose.
Instead of utilizing his personal wealth, the former president and current candidate is using his campaign funds to cover the exorbitant costs of the court case.

Is It Legal for Trump to Pay for His Trial with Campaign Funds?

Source: Reddit

According to federal regulations, campaign funds may be used to pay for up to 100 percent of legal expenses related to campaign or officeholder activity, where such expenses would not have occurred had the individual not been a candidate.
This applies to Donald Trump’s current situation, as he is being tried for being “part of an illegal conspiracy to undermine the integrity of the 2016 election.” The presidential race, which he then won, and therefore, “such expenses would not have occurred had the individual not been a candidate.”

It’s Legal, But It’s Not Exactly Smart

Source: NBC News/YouTube

While Trump is not violating any laws by using his campaign funds to cover his legal expenses, this approach may not be the most advisable course of action.
As mentioned earlier, Trump has already spent $51.2 million from his campaign funds on legal expenses. He still has the option to use another $23.5 million over the coming months if he chooses to do so. However, this would leave the presidential candidate with minimal funds during the most intense phase of the race.

Breaking Down Trump's Campaign Spending

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In the 2020 presidential campaign, Donald Trump spent $1.06 billion on his campaign, while Joe Biden spent even more, totaling $1.68 billion.
While this is certainly the most any two candidates have spent on an election, the truth is that presidential campaigns have always been wildly expensive. Both Democratic and Republican candidates rely on their own organizations for campaign financing. These organizations are known as the Democratic National Committee (DNC) and the Republican National Committee (RNC). They actively raise funds to support their respective candidates.

Candidates Often Start Secondary Organizations to Raise More

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The DNC and RNC typically cannot cover the entire campaign expenses. Therefore, candidates establish their own organizations to fill the gap. In Trump’s case, these organizations include Save America and Make America Great Again Inc.
Both Save America and Make America Great Again Inc., referred to as political action committees or PACs, have raised tens of millions of dollars for the presidential candidate. However, a significant portion of these funds is being used to cover the expenses of his trial.

Save America Has Spent $9.9 Million on Trump’s Trial

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Save America primarily consists of smaller donations from Trump’s less affluent supporters across the nation. In 2022 alone, the PAC raised an impressive $100 million. However, a substantial portion, $82 million, was spent on preparations for the 2024 election.
During the first half of 2023, Save America raised an additional $15 million. However, they ended up spending $30 million during that period, with $9.9 million allocated for legal fees. As reported by CNBC, the organization now has only $3.6 million remaining.

MAGA Inc Used $0.71 of Every Dollar for Legal Expenses

Source: Steveofholt/X

On the contrary, MAGA Inc. has expended $43.8 million over the past year. Bloomberg reports that 71 cents of every dollar spent by the organization went toward legal expenses, rather than campaigning.
So, while it’s challenging to determine the exact amount of money Trump has left from both his PACs, it’s becoming increasingly evident that it may not be sufficient to mount a successful presidential campaign.

What About the RNC?

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Additionally, the RNC has shouldered a substantial portion of Trump’s legal fees. As of the beginning of 2024, the organization only has $8 million remaining to allocate toward the forthcoming campaign.
Trump has been vocal about his belief that the RNC isn’t fulfilling its fundraising obligations adequately. Specifically, he has criticized chairwoman Ronna McDaniel for what he perceives as a lack of effort in raising funds.

Trump Is a Far More Expensive Candidate Than Biden

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It’s evident that due to his ongoing criminal trial, Trump’s candidacy is significantly more expensive than Biden’s.
The positive news for Biden is that the entire $97 million raised by the DNC in 2023 will be allocated toward the upcoming presidential race. Meanwhile, Trump is rapidly depleting his funds.

How Will Trump Run Without Money?

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There is still time for the RNC and PACs like Save America and MAGA to raise millions of dollars to support their preferred candidate’s bid for the Oval Office once again. However, achieving this goal will require significant effort and diligence.
Chris LaCivita, senior advisor to the Trump campaign, succinctly outlined their mission: “Maximize the Republican Party’s resources to get President Trump elected.”