In a twist that could impact the White House race, former President Trump's Truth Social platform is set to merge with Digital World Acquisition Corp., raising questions about Trump's financial struggles and his ability to close the fundraising gap with President Biden.

Biden's campaign has been outraising Trump's, despite polls indicating a close race nationally and Trump leading in key states. Adding to Trump's financial woes are his mounting legal expenses, as his criminal cases drain millions of dollars that could be crucial for his campaign.

Trump's attorneys contradicted his claims of having over $500 million in cash, stating that he lacks the funds necessary to cover the $454 million bond he needs to submit by Monday for a civil trial involving his business. Trump, however, indicated he has no intention of using his alleged cash reserves, citing his distrust in the judge and Attorney General.

While the merger deal between Digital World Acquisition Corp. and Truth Social has the potential to generate significant funds for Trump, provisions in the agreement prevent major shareholders from selling their stock for at least six months. This means that the estimated $3.5 billion Trump could make from the deal may not be available in time for the bond deadline.

Trump could explore the possibility of obtaining a waiver that would allow him to sell his shares earlier if the company's board, largely comprising his allies, grants approval. Nonetheless, uncertainties remain regarding the actual impact of the merger on Trump's financial situation in the near future due to regulatory limitations.

Trump's legal battles have taken a toll on his campaign finances. His fundraising committees spent nearly $30 million on legal expenses in the second half of 2023. Furthermore, his leadership PAC, Save America, spent substantial amounts on legal consulting fees, leaving it with only $4 million cash on hand to start this month.

The financial hurdles faced by Trump extend beyond legal costs. He recently needed to post a bond of approximately $91 million in an ongoing appeal related to a defamation case involving E. Jean Carroll. However, the most significant challenge lies in the $454 million he needs to secure for a civil fraud case, described by Trump's lawyers as a "practical impossibility."

In addition to his financial challenges, Trump is also lagging behind Biden in fundraising. Despite Trump's efforts to ramp up his fundraising in February, Biden's campaign operation raised significantly more funds, with Biden's committees bringing in $53 million compared to Trump's $20 million.

Republicans attribute Biden's fundraising advantage to the fact that the Democratic primary lacked significant opposition, while Trump faced a highly contested Republican primary. Some strategists believe that if Trump had been the incumbent president, he would likely have outraised Biden.

The financial difficulties Trump is currently facing are expected to give Biden an advantage as the race progresses. Democrats argue that the fundraising gap reflects stronger enthusiasm for Biden than polls indicate, enabling his campaign to organize ground operations and establish voter contacts more efficiently.

Republicans, however, believe that Trump's financial situation may not make him as vulnerable as other political candidates, highlighting his successful 2016 campaign against Hillary Clinton, despite being outraised. They also point to past instances where Democratic Senate candidates who raised more funds ended up losing their races against Republican incumbents.

As the general election campaign kicks off, the outcome of the Truth Social merger and Trump's ability to overcome his financial challenges will undoubtedly shape the race between the former president and President Biden.