Trump's Fundraising Agreement Diverts Donations to Legal Bills before RNC
ICARO Media Group
In a departure from fundraising norms, Donald Trump's new joint fundraising agreement with the Republican National Committee (RNC) has been revealed to direct donations not only to his campaign but also to a political action committee (PAC) that pays for his legal bills. The disclosure comes from a fundraising invitation obtained by The Associated Press.
The arrangement diverts funds to the Save America PAC, increasing the likelihood that Republican donors could see their money being used to pay off Trump's legal fees. Over the past two years, Trump's legal defense has already received a staggering $76 million for charges including four felony indictments and multiple civil cases.
Concerns have been raised within the Republican party that Trump's control over the RNC could result in a shortage of funds for the cash-strapped party. The disclosure of funds being directed towards Trump's legal expenses adds to the existing worry.
Trump has called upon high-dollar donors to attend a fundraiser in Palm Beach, Florida, scheduled for April 6. The invitation indicates that donations to the Trump 47 Committee will be allocated first to Trump's campaign, followed by contributions to Save America, and then to the RNC and state political parties.
This diversion of funds to Save America, which is structured as a leadership PAC, breaks from the traditional fundraising approach of prioritizing cash that can be spent directly on campaign activities. As of February, 84% of Save America's spending has been devoted to Trump's legal costs.
While representatives for the Trump campaign have not responded to requests for comment on this matter, it is evident that Trump's handpicked leadership team for the RNC, including his daughter-in-law Lara Trump and campaign manager Chris LaCivita, play important roles in both fundraising and RNC operations.
Lara Trump has expressed her belief that Republican voters would be supportive of the RNC covering Trump's legal fees. However, prior to the recent leadership change within the RNC, LaCivita stated that no RNC or campaign funds were utilized or would be used for paying legal fees.
Before Trump became a candidate, the RNC did contribute towards his legal expenses for cases that originated during his time as president. Trump's new arrangement does not directly allocate RNC funds to lawyers; however, it ensures that payments to the combined Republican campaign, Trump's campaign, and Save America PAC are made first.
Donors have the option to direct their contributions differently or bypass the joint fundraising agreement altogether by donating directly to the RNC or any other entity. Nevertheless, Trump's political operation is facing challenges in catching up to President Joe Biden's fundraising and organization efforts.
In February, Trump's main campaign account and Save America PAC raised a total of $15.9 million and closed the month with more than $37 million on hand. Biden, on the other hand, reported raising $53 million in the same period and ended February with $155 million on hand, including joint fundraising efforts with the Democratic National Committee.
As the party's presumptive nominee, Trump effectively controls the RNC and can take advantage of higher contribution limits applicable to party committees. Under the joint fundraising agreement, a single donor could contribute over $800,000, while a couple could contribute $1.6 million.
The upcoming April 6 fundraiser, organized to benefit the Trump 47 Committee, lists prominent figures such as billionaire investor John Paulson, businessman Robert Bigelow, grocery billionaire John Catsimatidis, Linda McMahon, former executive of World Wrestling Entertainment, casino mogul Steve Wynn, and former Georgia Sen. Kelly Loeffler as co-chairs.
Overall, this unconventional diversion of funds towards Trump's legal fees highlights the unique nature of the Trump campaign's use of a leadership PAC and raises concerns among Republicans about potential financial implications for the RNC.