Donald Trump’s campaign fundraising operation for the 2024 White House race has significantly boosted spending on his properties in recent months. This move funnels money into his businesses, which is particularly crucial given his current legal challenges and urgent need for cash.
According to a report filed to the Federal Election Commission this week, Trump’s joint fundraising committee made four payments to his Mar-a-Lago club in Palm Beach, Florida, totaling $411,287 in February and March. Additionally, another payment of $62,337 was made to Trump National Doral Miami in March.
According to experts, federal law and FEC regulations permit the use of donor funds at a candidate’s business as long as the campaign pays fair market value. This practice has been employed by Trump for several years, as he has directed millions in campaign cash towards his extensive business empire. These funds have been utilized for various expenses, including the use of his personal aircraft for political events, rent at Trump Tower, and hosting events at his properties, which comprise hotels and private clubs.
Some experts in campaign finance argue that although it is legal, there are ethical concerns when a candidate is earning personal income from their political campaign.
Shanna Ports, a senior legal counsel with the Campaign Legal Center, a nonprofit government accountability group, expressed concerns about the impact of such incidents on voter trust in the political system and the motives of elected officials.
Trump faces huge legal costs amid multiple civil and criminal cases
The substantial amount of money being spent by Trump’s campaign at his own businesses could potentially provide financial relief for the former president, who is currently facing a significant cash shortage.
After losing two civil lawsuits, Trump has been slapped with two significant financial judgments.
In a defamation case filed by writer E. Jean Carroll, Donald Trump has posted a bond worth $91.6 million. Additionally, he has also posted a bond of $175 million in a fraud case related to falsifying business records. However, the New York attorney general is questioning the financial viability of the arrangement made by Trump to post the larger bond payment.
In recent months, the payments made by Trump’s campaign to his businesses have been increasing, although they still remain relatively small in comparison to his significant court-ordered financial judgments.
The Trump campaign and affiliated political committees have paid businesses owned by Trump a total of $4.9 million since the start of 2023, as analyzed by USA TODAY. The majority of this amount, $4.1 million, was allocated to TAG Air, Inc. for air travel expenses.
TAG Air, Inc is listed among Trump’s assets on his most recent financial disclosure, a requirement for presidential candidates. The value of TAG Air, Inc falls between $5 million and $25 million, and it is responsible for operating his private aircraft, affectionately known as Trump Force One.
Since the beginning of last year, Trump’s properties have been the recipients of at least $809,000 in expenditures from his various campaign committees and a super PAC controlled by his supporters.
Campaign spending at Mar-a-Lago in Palm Beach, Doral in Miami
Since the beginning of 2023, the majority of the campaign spending at Trump’s properties has been at Mar-a-Lago, totaling $663,000. Most of this spending took place in February. However, the specific events that these funds were allocated for remain unclear.
The Trump campaign’s use of his properties for campaign spending has been met with scrutiny. When asked about this issue, a Trump spokeswoman chose to deflect by criticizing President Joe Biden instead of addressing the specific questions about the campaign spending at Trump’s properties.
Several other Republican candidates have also been using a significant amount of their campaign funds at properties owned by Donald Trump.
Ohio Republican U.S. Senate candidate Bernie Moreno’s campaign has reportedly spent a total of $109,000 on “event catering” at Mar-a-Lago. This expenditure took place in April, December, and January of 2023, according to records. It’s worth noting that Moreno received an endorsement from former President Donald Trump in December. Following a successful primary win in March, Moreno will now be going head-to-head against three-term Democratic Senator Sherrod Brown in the upcoming November elections.
Nevada U.S. Senate candidate Jim Marchant’s campaign invested approximately $67,000 at Mar-a-Lago for “event venue rental and catering” during November and December. Marchant had the support of former President Trump during his unsuccessful attempt to become Nevada’s secretary of state in 2022. Currently, Marchant is aiming to defeat first-term Democratic Sen. Jacky Rosen in the upcoming election.
The Giuliani Defense PAC allocated $2,400 towards fundraising expenses and food at Trump’s golf club in Bedminster, New Jersey in January. As reported by FEC filings, this PAC has already spent $540,000 on legal fees. Notably, Trump organized a fundraiser at Bedminster in September to support Rudy Giuliani in covering his legal expenses. These charges are connected to Giuliani’s involvement in attempting to overturn the 2020 election results in Fulton County, Georgia.
On March 5, Trump organized a gathering at Mar-a-Lago where he invited a sizeable crowd of supporters to watch the Super Tuesday primary election results from 16 states. Additionally, in October, he held a fundraiser at Mar-a-Lago which attracted hundreds of supporters, including notable figures such as U.S. Reps Marjorie Taylor Green and Byron Donalds, Texas attorney general Ken Paxton, and actress Roseanne Barr.
In March, a fundraising event took place at Trump National Doral, organized by former Ambassador Carlos Trujillo. The event aimed to raise funds for the Make America Great Again, Inc. super PAC.
The majority of the spending at Trump properties was accounted for by the Trump Save America Joint Fundraising Committee. This committee raises money for Trump’s campaign and his Save America leadership PAC. Other expenses were paid for by Trump’s main campaign committee, the MAGA Inc. super PAC, and Save America.
Concerns about Trump’s business conflicts go back to 2016 election
Throughout Donald Trump’s three campaigns and his four years in the White House, there have been persistent questions about how his businesses have reaped the benefits of his political career.
After winning the 2016 election, Trump faced pressure to prevent conflicts of interest arising from his business ventures and presidential responsibilities. In response, he made a declaration that he would refrain from entering into any “new deals.” Additionally, he entrusted the management of his family business to his two adult sons. However, critics argued that the trust overseeing the business lacked sufficient safeguards to ensure ethical conflicts would be avoided.
During his presidency, lawsuits accusing Trump of violating the emoluments clauses in the Constitution were unsuccessful. Critics claimed that individuals trying to exert influence on Trump’s administration had been channeling funds into his businesses, including a hotel near the White House in Washington, D.C., which has since been sold and rebranded as a Waldorf Astoria.
The America Democracy Legal Fund lodged a complaint with the FEC in 2016, claiming that “Mr. Trump is utilizing funds from his presidential campaign to advance his business and personal pursuits.” Although the complaint was ultimately dismissed, it continues to raise concerns among certain campaign finance experts.
“Running for office should be driven by a genuine desire to serve the public, rather than a means to personal enrichment,” remarked Ports. “Allowing campaigns to pay the candidate’s business, although within legal boundaries, can create a negative perception of the electoral process.”
According to Richard Briffault, a legislation professor at Columbia Law School, while Trump’s use of campaign funds at his businesses may not be illegal, it does raise some concerns.
‘Nobody’s ever seen anything like it’
According to Briffault, there may be no other political candidate with a business empire as vast as Trump’s, except for Michael Bloomberg, the former Mayor of New York City, who ran for president as a Democrat. However, even Bloomberg’s business ventures cannot be directly compared to Trump’s. Briffault emphasized that Trump’s unique approach to business and politics sets him apart from anyone else. He stated, “Everything with Trump, nobody’s ever seen anything like it.”
One crucial step for Trump’s businesses is to ensure that they charge his campaign and PACs the same rate as any other customer. However, it is also important to consider the ethical implications of whether the campaign and PACs could find a better deal elsewhere.
Briffault raised concerns about the cost and accommodations provided by the organizers. He questioned the rationale behind holding the events at expensive venues when there could be more affordable options available.
Trump’s leadership PAC has been allocating significant funds towards legal representation as the president confronts four criminal cases. Presently, he is undergoing trial in New York City for a case related to purported payments made to an adult film star during the 2016 presidential campaign, aimed at ensuring her silence about an alleged sexual encounter.
Since just days after the 2020 election, Save America, the leadership PAC, has already expended over $72.5 million on legal fees to the very firms that are currently representing him in his civil and criminal suits. Although the majority of his legal expenses come from this fund, his associated committees have also allocated millions of dollars for this purpose.
Campaign finance experts say that Trump has gone beyond the normal spending on legal issues, pushing the boundaries of what is considered acceptable for a campaign.
President Trump’s decision to use campaign funds to support his struggling businesses has raised concerns among experts. The move, which involves funneling campaign money into these cash-strapped ventures, is seen as problematic from an ethical standpoint. Critics argue that it creates a potential conflict of interest and raises questions about the transparency of campaign finances.
