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    DeSantis, With a Subtle Maneuver, Hides His Small-Dollar Donations

    The campaign of the Florida governor, who is known to be reliant on rich donors, worked with a Republican fund-raising powerhouse to prevent the disclosure of information on small contributors.When WinRed, the company that processes nearly all online Republican campaign contributions, recently released its enormous trove of donor data for the first half of the year, donations were conspicuously absent for one presidential candidate: Gov. Ron DeSantis of Florida.It was no technical glitch. The DeSantis campaign worked with WinRed in a way that prevented the disclosure of donor information, ensuring that the campaign’s small donors would remain anonymous, according to a person familiar with the campaign.The arrangement appears to be the first of its kind for a presidential campaign since WinRed’s founding four years ago and could presage a return to an era in which far less information on small donors is made public, at least for Republicans.Representatives for Mr. DeSantis declined to describe details of the arrangement. The person familiar with the campaign said the aim was to prevent other campaigns from poaching Mr. DeSantis’s donors.But the move has other effects, including obscuring exactly how many — or how few — online donations Mr. DeSantis has received.His dependency on larger contributors has been a source of concern for his campaign, after his first financial report last month revealed that less than 15 percent of his $20 million haul had come from donors who gave less than $200. News emerged on Tuesday that Mr. DeSantis had replaced his campaign manager as part of a broad shake-up.Matt Mackowiak, a Republican consultant based in Texas, said he was not convinced of the value of concealing small donors — “Generally, small donors don’t care about disclosure,” he said — but he also did not see much of a threat to transparency in the campaign’s arrangement.“To me, the single most important aspect of the transparent philosophical debate is: Is somebody buying influence?” Mr. Mackowiak said. “You’re not going to buy anyone with a $200 or less donation.”Until recent years, he noted, small donations were never broken out in federal campaign finance disclosures. In a sense — and to the all but certain dismay of those who push for transparency — the move by the DeSantis campaign suggests a return to a previous era when those contributions remained anonymous.WinRed was set up in 2019 as a conservative answer to ActBlue, a nonprofit group that since 2004 has served as the central platform to process online donations for Democratic candidates and causes. ActBlue has been widely credited with establishing Democratic dominance in small-dollar fund-raising, and Republicans had long been eager for their own version.Unlike ActBlue, the heart of WinRed is a for-profit company. But its political action committee, like ActBlue’s, has served as a conduit for contributions to campaigns. Donors would give to the campaign through a webpage run by WinRed, which then distributed the money to it.In the 2020 election cycle, WinRed received and forwarded over $2.2 billion in online contributions; ActBlue was a conduit for more than $4.2 billion.While political campaigns are not required to itemize contributions under $200, the PACs for WinRed and ActBlue have to provide information on every donor. Their filings offered the public the only details about campaigns’ small-dollar contributions.WinRed has fought the requirement that it disclose every donor. It is currently in litigation with the Federal Election Commission and seeks to raise the threshold to $200, arguing that the requirement is burdensome and is not in keeping with the drastic growth of small-dollar donations.A spokesman for WinRed did not respond to requests for comment.WinRed recently started offering “merchant” accounts, in which the company acts not as a conduit, but as a typical payment processor. Mr. DeSantis’s campaign chose this option, the person familiar with the campaign said, cutting WinRed’s PAC and its disclosure requirements out of the picture.It appears to be the first time a presidential campaign has opted for this arrangement. The former chief executive of WinRed, Carl Sceusa, is currently the chief financial and chief technology officer of the DeSantis campaign.The difference in disclosure is vast.WinRed’s filing last week showed that Mr. Trump’s main fund-raising committee processed 1,328,930 donations in the first six months of the year. It showed nothing about Mr. DeSantis, whose campaign reported only 15,462 donations above $200 on his campaign’s Federal Election Commission filing. There was no information about the donors who gave less than $200. His campaign has said he has topped the 40,000 donors needed to make the first debate stage, but only a fraction of them are now disclosed.“Using the payment processor model allows them to not have to itemize those donors,” said Adav Noti, senior vice president and legal director at the Campaign Legal Center, a nonprofit campaign ethics group. “That’s a business question, not a legal question.”The vendor arrangement raises some legal questions, Mr. Noti said: First, whether WinRed’s merchant arm is, itself, a de facto political group, which would have to register as a political action committee.“F.E.C. rules are pretty clear that payment processors can’t be partisan,” Mr. Noti said.The strategy may be most notable for what it could suggest to competitors about Mr. DeSantis’s campaign.“To the extent that unitemized contributions could tell you something about a candidate that might be valuable, it’s that they are regional, in one place,” Mr. Mackowiak, the strategist, said. “The only thing I can think of is that their small donor base may be primarily Florida-based, and they didn’t want to appear like a regional candidate.” More

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    Who Are Robert F. Kennedy Jr.’s Donors?

    A super PAC backing Robert F. Kennedy Jr.’s bid for the Democratic nomination received $5 million from a major Republican donor who has supported Donald J. Trump in the past.As he cut into steak frites at the recent fund-raiser he hosted for Robert F. Kennedy Jr.’s long-shot bid for the Democratic presidential nomination, the financier Omeed Malik surveyed the crowd.What he saw on that July evening was unusual, he said: Environmentalists and admirers of Mr. Kennedy’s family were mingling at a restaurant in Sag Harbor, N.Y., alongside Hollywood figures, hippies and right-wing conservatives.“It was a complete hodgepodge of characters that I have never seen at a political event,” recalled Mr. Malik, an investor and merchant banker based in Palm Beach, Fla. “Because everyone is attracted to him for a different reason.”Fueled by an unusual combination of views — passionate environmentalism, for example, alongside a deep distrust of the pharmaceutical industry and public health orthodoxy — Mr. Kennedy’s campaign has stood out for its curious coalition of Democrats, Republicans and independents of varying backgrounds.Financial filings this week from two super PACs supporting him, which together have raised nearly $10.5 million, seemed to underscore this theme. The pro-Kennedy super PAC American Values 2024 received the bulk of its money from two megadonors: one who has contributed tens of millions to Republican causes, and another who has backed both Democrats and Republicans.Timothy Mellon, a Wyoming Republican who contributed $53 million in stock to a Texas fund paying for construction of a new border wall, gave that super PAC $5 million. Gavin de Becker, a security executive who describes himself as a Democrat and consulted for the Amazon founder Jeff Bezos during Mr. Bezos’s text message scandal, donated $4.5 million.“The fact that Kennedy gets so much bipartisan support tells me two things,” Mr. Mellon, previously a top donor to former President Donald J. Trump, said in a statement issued by American Values 2024. “That he’s the one candidate who can unite the country and root out corruption, and that he’s the one Democrat who can win the general election.”In 2019 and 2020, Mr. Mellon gave $70 million combined to super PACs pushing for Republican control of the House and Senate and to one supporting Mr. Trump, records show.The support from Republicans is likely to heighten suspicions about Mr. Kennedy’s candidacy among Democrats who see him as a pawn in an effort to undermine President Biden. Dozens of venture capitalists, tech executives, real-estate builders and investors with varying political alliances also contributed to the Kennedy-aligned PACs.Patrick Byrne, the former chief executive of Overstock.com — and one of the most prominent supporters of the effort to overturn the 2020 election — gave $100,000 in Bitcoin to Common Sense, another PAC supporting Mr. Kennedy.Abby Rockefeller, a daughter of the investment banker David Rockefeller who runs a cannabis farm in upstate New York, gave $100,000 to the American Values 2024 PAC. She said in a statement that she always voted for Democrats.Common Sense reported a total fund-raising haul of about $711,000 in the three-month period ending in June.A photo of Mr. Kennedy with his father, Robert F. Kennedy, was shown at a speech the Democratic presidential candidate gave in Boston in April. Many of the Kennedys have expressed anguish at Robert F. Kennedy Jr.’s political stances. Brian Snyder/ReutersMr. Kennedy, an environmental lawyer, the scion of a storied American political dynasty and a hero of the so-called medical freedom movement — which has seeded public skepticism about vaccines and other public health measures — is unlikely to prevail in his quest for the Democratic nomination.More than five months before the Iowa caucuses, he is trailing far behind Mr. Biden. He has the support of just 13 percent of registered voters compared with Mr. Biden’s 64 percent, according to a recent New York Times/Siena poll.And his financial support is likely to pale in comparison with the powerhouse of fund-raising and institutional support behind the incumbent president.But the fact that some of deep-pocketed supporters include some who favored Mr. Trump in the past suggest that those numbers may have room to grow.“I don’t think he has the influential tech leaders,” said Charles Phillips, a venture capitalist who co-founded a nonpartisan PAC to support candidates with strategies for economic growth in Black communities. Mr. Kennedy, he added, “won’t get broad support. Most of the tech guys supporting him are really Republicans.”Mr. Mellon, the grandson of former Treasury Secretary Andrew W. Mellon, also gave $5 million last quarter to the Congressional Leadership Fund, a super PAC dedicated to electing Republicans to the House of Representatives, and $1 million to Fair Courts America, a committee backed by other major Republican donors that has supported conservative candidates for state supreme court seats.Patrick Byrne, the former head of Overstock.com and a supporter of the effort to overturn the 2020 election, is one of the largest donors to Mr. Kennedy’s campaign.Saul Martinez for The New York TimesSome of Mr. Kennedy’s smaller-scale supporters said their admiration was driven by Mr. Kennedy’s unfiltered quality as well as his willingness to take on legacy institutions like the mainstream news media (which he says has censored him), the banking system (which he believes takes advantage of consumers), the medical establishment (he has said that big government has been co-opted by the pharmaceutical industry), and the government’s response to Covid-19, which he has said was both overreaching and ineffective.Some are willing to set aside his more extreme views — including his vaccine skepticism and his conspiracy theories about anti-depressants and “Deep State” corruption — because they admire what they see as his integrity.The Sag Harbor dinner last month drew more than 30 attendees who each pledged $6,600 to Mr. Kennedy’s campaign, the maximum amount that can be contributed by individuals to a campaign for a primary and a general-election bid combined, according to Mr. Malik. During the evening, Mr. Kennedy took questions on subjects including Russia’s war in Ukraine and cryptocurrency.In June, Common Sense PAC hosted a fund-raiser in San Francisco with two tech investors, David Sacks — a Silicon Valley entrepreneur and Republican donor who has supported Gov. Ron DeSantis of Florida — and Chamath Palihapitiya, a former senior executive at Facebook.Nick Corasaniti More

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    The Republicans Who Could Qualify for the First Presidential Debate

    At least seven candidates appear to have made the cut so far for the first Republican presidential debate on Aug. 23. Trump(may not attend) Trump(may not attend) The latest polling and fund-raising data show that the playing field is narrowing for the Republican presidential debate scheduled for later this month. Although former President Donald J. […] More

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    Trump PAC Down to $4 Million Cash on Hand After Legal Fees

    The scramble to cover legal bills for former President Donald J. Trump and his associates has prompted what appears to be the largest refund in federal campaign finance history.Former President Donald J. Trump’s political action committee, which began last year with $105 million, now has less than $4 million left in its account after paying tens of millions of dollars in legal fees for Mr. Trump and his associates.The dwindling cash reserves in Mr. Trump’s PAC, called Save America, have fallen to such levels that the group has made the highly unusual request of a $60 million refund of a donation it had previously sent to a pro-Trump super PAC. This money had been intended for television commercials to help Mr. Trump’s candidacy, but as he is the dominant front-runner for the Republican nomination in 2024, his most immediate problems appear to be legal, not political.The super PAC, which is called Make America Great Again Inc., has already sent back $12.25 million to the group paying Mr. Trump’s legal bills, according to federal records — a sum nearly as large as the $13.1 million the super PAC raised from donors in the first half of 2023. Those donations included $1 million from the father of his son-in-law, Charles Kushner, whom Mr. Trump pardoned for federal crimes in his final days as president, and $100,000 from a candidate seeking Mr. Trump’s endorsement.The extraordinary shift of money from the super PAC to Mr. Trump’s political committee, described in federal campaign filings as a refund, is believed to be larger than any other refund on record in the history of federal campaigns.It comes as Mr. Trump’s political and legal fate appear increasingly intertwined. The return of money from the super PAC, which Mr. Trump does not control, to his political action committee, which he does, demonstrates how his operation is balancing dueling priorities: paying lawyers and supporting his political candidacy through television ads.Save America, Mr. Trump’s political action committee, is prohibited by law from directly spending money on his candidacy. When Save America donated $60 million last year to Mr. Trump’s super PAC — which is permitted to spend on his campaign — it effectively evaded that prohibition.It is not clear from the filing exactly when the refund was requested, but the super PAC did not return the money all at once. It gave back $1 million on May 1; $5 million more on May 9; another $5 million on June 1; and $1.25 million on June 30. These returns followed Mr. Trump’s two indictments this year: one in Manhattan in March, and one last month in federal court.An additional transfer of a chunk of money to Save America came in July, according to a person familiar with the matter, suggesting that the super PAC could continue to issue refunds and therefore indirectly pay for Mr. Trump’s legal bills in the coming months. The communications director for the super PAC, Alex Pfeiffer, declined to comment on any additional transfer.The super PAC spent more than $23 million on mostly negative advertising attacking his leading rival, Gov. Ron DeSantis of Florida, earlier this year.Super PACs can raise unlimited money, while regular PACs have strict $5,000 donation limits. Some campaign finance experts described the refunds as a backdoor effort by Save America to skirt that limit.“I don’t know that calling it a refund changes the fundamental illegality,” said Adav Noti, a former lawyer for the Federal Election Commission’s litigation division.The pro-Trump super PAC and Trump-controlled PAC must be independent entities and are barred from any coordination on strategy, a fact that Mr. Noti indicated could be at issue with the staggered refunds.“So for the super PAC and the Trump PAC to be sending tens of millions dollars back and forth depending upon who needs the money more strongly suggests unlawful financial coordination,” said Mr. Noti, who is now the legal director of the Campaign Legal Center, a watchdog group that had filed a previous complaint about the $60 million transfer.In response to Mr. Noti’s suggestion of illegality, Steven Cheung, a spokesman for the Trump campaign, said in a statement: “Everything was done in accordance with the law and upon the advice of counsel. Any disgusting insinuation otherwise, especially by Democrat donors, is nothing more than a feeble attempt to distract from the fact that President Trump is dominating this race — both in the polls and with fund-raising — and is the only candidate who will beat Crooked Joe Biden.”Save America was already under scrutiny by the special counsel Jack Smith for paying lawyers representing witnesses in cases against Mr. Trump. The group was seeded with the more than $100 million that Mr. Trump raised almost immediately after losing the 2020 election, as he claimed he was fighting widespread voter fraud. Federal prosecutors are also looking into whether Republicans and Trump advisers knew he had lost but continued with such claims anyway.Some of Mr. Trump’s rivals and their allies have seized on the Save America legal payments, accusing him of using small-dollar donations intended for another purpose to pay for his lawyers.Mr. Trump’s more recent actions appear to acknowledge his vulnerability to such criticism.For instance, his team recently formed a legal-defense fund to help allies of Mr. Trump who are facing legal scrutiny, though the fund is not expected to help cover his own bills. And at a rally in Erie, Pa., on Saturday, Mr. Trump said that he would spend as much of his own money on his campaign as was necessary, without mentioning his legal expenses.The DeSantis campaign is keenly aware that the multiple criminal indictments against Mr. Trump have only intensified his support among many Republican primary voters, who view him as a victim of political persecution.But the latest revelations provided an opening for Mr. DeSantis’s team to claim the former president was grifting off his supporters.Mr. DeSantis’s rapid-response director, Christina Pushaw, suggested that “MAGA grandmas were scammed” out of their Social Security checks “in order to pay a billionaire’s legal bills.”Mr. DeSantis himself declined to address the subject after an economic policy speech in Rochester, N.H., on Monday, dismissing a question about it as uninteresting to voters.Save America also footed some of the costs of salaries for staff members who are being paid by Mr. Trump’s campaign as well. That included the salary of Walt Nauta, a personal aide to Mr. Trump who is also one of his two co-defendants in the federal indictment accusing the former president of improperly retaining classified material and obstructing efforts to retrieve it.After all its spending and refunded money, Mr. Trump’s super PAC entered July with $30 million on hand. Among the group’s largest contributions were $5 million from Trish Duggan, a prominent Florida Scientologist; $1 million from Woody Johnson, Mr. Trump’s former ambassador to England and an heir to the Johnson & Johnson pharmaceutical empire; and $2 million from Phil Ruffin, a Las Vegas casino magnate.The super PAC also received $100,000 from Bernie Moreno, a businessman who is running for the U.S. Senate in Ohio and who is seeking Mr. Trump’s endorsement. And it received another $138,400 from Saul Fox, a Republican donor who also gave money to the super PAC supporting Mr. DeSantis.High-dollar fund-raising for the Trump super PAC has accelerated in recent weeks as the former president has added to his commanding polling lead over Mr. DeSantis, according to people familiar with the group’s finances. An official with Make America Great Again Inc., who was not authorized to discuss contributions not on the federal filing, said the super PAC had raised $15 million in July — more than it had raised in the first six months of the year combined.Nicholas Nehamas More

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    DeSantis Unveils Economic Plan Slamming ‘Failed Elites’

    Gov. Ron DeSantis of Florida introduced a 10-point economic plan geared toward the blue-collar voters with whom he has struggled to resonate.Attempting to meld his “anti-woke” politics with economic policy, Gov. Ron DeSantis on Monday unveiled a plan that he claimed took on corporate interests, business elites, federal government bureaucrats and foreign trade relations — forces he blamed for derailing the prosperity of American families.“We will declare our economic independence from the failed elites that have orchestrated American decline,” Mr. DeSantis said during a speech at a bustling New Hampshire logistics-company warehouse, laying out the economic vision for his presidential campaign. “We the American people win; they lose.”The governor linked a decline in U.S. life expectancy to suicides, drug overdoses, alcoholism and the struggles facing the nation’s working class. “This is not normal, this is not acceptable, and yet entrenched politicians in Washington refuse to change course,” he said.His populist, anti-corporatist comments seemed intended to lift his standing with non-college-educated voters, a crucial Republican constituency that polling shows is not supporting Mr. DeSantis’s candidacy in large numbers. Only 13 percent of Republican voters without a college degree nationwide back Mr. DeSantis, according to the first New York Times/Siena College poll of this election cycle. Former President Donald J. Trump, the race’s front-runner, has attacked Mr. DeSantis as a “globalist” and a “RINO,” or Republican in name only.Mr. DeSantis’s somewhat scattershot 10-point plan also includes goals to achieve energy independence, end President Biden’s climate change policies, rein in federal spending, expand vocational education and make colleges responsible for student loans. He also proposes revoking China’s preferential trade status, limiting “unskilled” immigration and cutting taxes.In sum, the plan largely repeats standard conservative promises to stoke economic growth by reducing taxes on corporations and investors, and by cutting government regulation — proposals that are typically cheered by business lobbyists, despite Mr. DeSantis’s anti-corporate, “anti-woke” rhetoric. He would prioritize fossil fuel development, another longtime conservative plank. And his proposals to further reduce America’s economic links with China echo the plans of an emerging populist wing of Republican candidates, including Mr. Trump.The governor’s speech is part of an effort to recalibrate his campaign, which laid off more than a third of its staff this month, as it failed to meet fund-raising goals. National polls show him trailing Mr. Trump badly. Mr. DeSantis has already reshaped the tactics of his campaign in the past week, opening himself up to more questions from voters and the media; holding smaller, less formal events; and condensing his lengthy stump speech. Now, his advisers say he is also resetting his message, with plans to talk more about the policies he would implement as president, as well as about his biography, rather than about his record in Florida.Mr. DeSantis has already unveiled proposals on immigration and the military. Ahead of the first Republican debate on Aug. 23, he is also expected to introduce his foreign policy plans, using that topic and his economic strategy as the cornerstones of his campaign in the coming weeks.But Mr. DeSantis, who prides himself as a policy expert, has a tendency to delve deep into details and to use a sometimes bewildering series of acronyms in his stump speeches. His allies say that getting into kitchen-table issues like the economy is a necessary shift.“The average voter probably needs to be talked to on a higher level, not getting down into the weeds so much,” said Jason Osborne, the New Hampshire House majority leader who has endorsed Mr. DeSantis. Still, Mr. Osborne said, many party activists appreciated the governor’s attention to the finer points of policy.On Monday, Mr. DeSantis littered his speech with references to the C.C.P. (the Communist Party of China), E.S.G. (environmental, social and governance standards used by corporations), D.E.I. (diversity, equity and inclusion policies) and C.B.D.C. (a central bank digital currency).He saved some of his harshest words for China, saying that its Communist Party was eating “this country’s lunch every single day.”In addition to revoking China’s “most favored nation” trading status, the governor said he would ban imports made from stolen U.S. intellectual property and would prevent companies from sharing critical technologies with China.Mr. DeSantis also notably accused big corporations of contributing to what he called the nation’s “economic malaise” by adopting political ideologies.Those comments reflected Mr. DeSantis’s embrace of the New Right, which argues that leftists have taken over many boardrooms and that conservatives must overcome their historical aversion to limited government interference in corporate matters and fight back. The governor has attacked those he calls “Chamber of Commerce Republicans,” meaning those more traditional members of the party who have criticized his ongoing feud with Disney.”There’s a difference between a free-market economy, which we want, and corporatism, in which the rules are jiggered to be able to help incumbent companies,” he said, adding that he would ban individual stock trading by members of Congress and executive branch officials.In addition, Mr. DeSantis derided government bailouts, citing the financial crisis in 2008 and the stimulus signed by Mr. Trump in response to the coronavirus pandemic.And he pledged to make institutions of higher education, instead of taxpayers, responsible for student debt, a menacing shot at universities that escalates policies he has proposed as governor to overhaul Florida’s higher education system.He also proposed a plan that borrows from traditionally liberal agendas: allowing borrowers to discharge their remaining student loan balances if they declare bankruptcy. While it is now possible for debtors to do that, many have found the process difficult and cumbersome, and liberal groups like the Center for American Progress in Washington have embraced such reforms in the past.“It’s wrong to say that a truck driver should have to pay off the debt of somebody who got a degree in gender studies,” Mr. DeSantis said. “At the same time, I have sympathy for some of these students because I think they were sold a bill of goods.”On the campaign trail, Mr. DeSantis often highlights his economic acumen by pointing to Florida’s surging economy, influx of new residents and the formation of new businesses. But the picture has grown less rosy this year, with inflation in Florida’s biggest metro areas rising faster than the national average. A troubled property insurance market and an affordable housing crisis have also complicated his message.In response to a question from a reporter on Monday, Mr. DeSantis defended his record on the state’s economy, saying that his landslide re-election had allowed him to pass major legislation addressing the property insurance and housing issues.“We’ve been working on this for a number of years,” he said.Mr. Trump’s campaign has hit Mr. DeSantis repeatedly for his management of the state.“Ron DeSantis should pack his knapsack and hitchhike his way back home to focus on the serious issues facing the great state of Florida,” Steven Cheung, a spokesman for Mr. Trump, said in a statement.Jim Tankersley More

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    Trump PAC Requested Refund for Legal Fees

    The situation signals a potential money crisis as the former president runs a campaign while under indictment in two jurisdictions and, soon, potentially a third.The political action committee that former President Donald J. Trump is using to pay his legal bills faced such staggering costs this year that it requested a refund on a $60 million contribution it made to another group supporting the Republican front-runner, according to two people familiar with the matter.The decision signals a potential money crisis for Mr. Trump, who has so far refused to pay his own voluminous bills directly and has also avoided creating a legal-defense fund for himself and people who have become entangled in the various investigations related to him.It comes as Mr. Trump runs a campaign while under indictment in two jurisdictions and, soon, potentially a third, while also paying the legal fees of a number of witnesses who are close to him or who work for him.It is unclear how much money was refunded.But the refund was sought as the political action committee, Save America, spent more than $40 million in legal fees incurred by Mr. Trump and witnesses in various legal cases related to him this year alone, according to another person familiar with the matter.The numbers will be part of the Save America Federal Election Commission filing that is expected to be made public late on Monday.That $40 million was in addition to $16 million that Save America spent in the previous two years on legal fees. Since then, Mr. Trump has been indicted twice and has expanded the size of his legal team, and his two co-defendants in the case related to his retention of classified material work for him. The total legal spending is roughly $56 million.The $40 million figure was reported earlier by The Washington Post.The PAC was the entity in which Mr. Trump had parked the more than $100 million raised when he sought small-dollar donations after losing the 2020 election. Mr. Trump claimed he needed the support to fight widespread fraud in the race. Officials, including some with his campaign, turned up no evidence of widespread fraud.Mr. Trump used some of that $100 million for other politicians and political activities in 2022, but he also used it to pay more than $16 million in legal fees, most of them related to investigations into him, and at least $10 million of which was for his own personal fees.Save America began 2023 with just $18 million in cash on hand, which is less than half of what was spent on legal bills this year.Campaign finance experts are divided on whether Mr. Trump is even able to continue to use the PAC to pay for his personal legal bills, as he became a candidate last November.Mr. Trump has long told associates that lawyers and other people contracted to work for him should do so for free, because they get free publicity. And he has told several associates that legal-defense funds are organized only by people who are guilty of crimes, according to people who have heard the remarks.Earlier this year, Mr. Trump began diverting a larger percentage of every dollar he raised online away from his campaign and into his PAC, which he has used to pay for his lawyers. At the start of the 2024 campaign, Mr. Trump had devoted 99 cents of every dollar raised online to his campaign. But he shifted that formula to now give only 90 cents to the campaign and 10 cents to the PAC, which has served as a sort of de facto legal fund.The move drew sharp criticism from some of his rivals. Chris Christie, the former governor of New Jersey, called it “disgraceful” on CNN during an interview in June.“He’s going to middle class men and women in this country and they’re donating $15, $25, $50, $100 because they believe in Donald Trump and they want him to be president again,” Mr. Christie said. “They’re not giving that money so he can pay his personal legal fees.”Yet that increased amount diverted from Mr. Trump’s campaign couldn’t possibly begin to cover the high costs of legal fees that the candidate and his associates have incurred. And whatever money the super PAC returned to the political action committee to cover legal bills in theory means less money being spent in support of Mr. Trump’s candidacy.A spokesman for Mr. Trump’s campaign, Steven Cheung, would not comment on the refund request. But regarding the overall spending on lawyers, he said, “The weaponized Department of Justice has continued to go after innocent Americans because they worked for President Trump and they know they have no legitimate case.”He characterized the legal actions against Mr. Trump and his allies as “heinous actions by Joe Biden’s cronies” and said the PAC had contributed to covering legal costs to “protect these innocent people from financial ruin and prevent their lives from being completely destroyed.”A spokesman for the super PAC did not immediately respond to a request for comment.Despite having his political action committee pay his legal fees, Mr. Trump, a wealthy businessman and celebrity, insisted on Saturday at a rally in Erie, Pa., that he would spend his own money on his campaign if he had to. More

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    How Is Tim Scott Spending Millions in Campaign Money? It’s a Mystery.

    Most of the money spent by the senator’s presidential campaign has gone to newly formed companies whose addresses are Staples stores in suburban strip malls.Senator Tim Scott of South Carolina has more political money than most of his Republican presidential rivals, and he has not been shy about spending it.Where that money is ultimately going, however, is a mystery.Mr. Scott entered the 2024 race with a war chest of $22 million, and his campaign raised $5.8 million from April through June. In that same time, he laid out about $6.6 million, a significant clip — but most of it cannot be traced to an actual vendor.Instead, roughly $5.3 million went to two shadowy entities: newly formed limited liability companies with no online presence and no record of other federal election work, whose addresses are Staples stores in suburban strip malls. Their minimal business records show they were set up by the same person in the months before Mr. Scott entered the race.Masking the companies, groups and people ultimately paid by campaigns — effectively obscuring large amounts of spending behind businesses and convoluted consulting arrangements — has become common, as political candidates and organizations test the limits of campaign finance law.Federal law requires campaigns to disclose their spending, including itemized details of their vendors, as a safeguard against corruption and in the interest of transparency. But as in many aspects of campaign finance law, campaigns have found workarounds, and the body that oversees such regulations, the Federal Election Commission, is perpetually hamstrung by partisan deadlock.Mr. Scott with voters in Iowa on Thursday. He is aiming to become the clear Republican alternative to Donald J. Trump in the party’s presidential primary race.Jordan Gale for The New York TimesCampaign finance experts said that among increasingly brazen moves by political candidates, Mr. Scott’s new financial disclosures stood out as exhibit A.“This practice completely undermines the federal campaign finance disclosure requirements,” said Paul S. Ryan, a campaign finance expert. “The public has a right to know how political committees are spending donor dollars.”Matt Gorman, a senior communications adviser for the Scott campaign, said: “These are independent companies we contract with to provide services to the campaign including managing multiple consultants. Payments to those companies are disclosed like all others on our F.E.C. report.”The F.E.C. has allowed committees to not itemize subvendor payments when those payments are an extension of the original vendor’s work. But in recent years, this interpretation of the law has widened into a gaping loophole that campaigns are exploiting. Experts say it is illegal for campaigns to pay campaign staff members through limited liability companies, or for vendors to serve merely as conduits to hide the ultimate recipient of campaign money.In recent years, the F.E.C., whose six commissioners are deadlocked between the parties three to three, has essentially allowed campaigns to get away with minimal disclosures.A spokeswoman for the commission declined to comment.Indeed, while the use of limited liability companies by Mr. Scott’s campaign is striking in its scale, it is not unique among Republican presidential candidates.The campaign of Gov. Ron DeSantis of Florida made two payments last quarter, totaling more than $480,000, for “travel” to a company in Athens, Ga. The company was set up around the time he entered the race, and lists Paul Kilgore — a Republican political operative — as a manager.Neither Mr. Kilgore nor the DeSantis campaign responded to requests for comment.Former President Donald J. Trump’s 2020 campaign was the subject of litigation over its use of limited liability companies run by campaign staff and family members that were allegedly conduits for hundreds of millions of dollars of spending. His campaign defended the practice, saying the intermediary companies were acting as the primary vendors.“The idea of disclosing payments in this way defeats the whole purpose of campaign finance disclosure law,” said Saurav Ghosh, a former F.E.C. lawyer and the director of federal campaign finance reform for the Campaign Legal Center, a nonprofit campaign ethics group that sued the F.E.C. over the 2020 Trump campaign’s actions.He added, “It’s been a problem for a while, but like most that go on unaddressed, it has a tendency to get worse, and I think this one is getting worse.”According to F.E.C. filings last week, the Scott campaign made $4.3 million in payments from April 1 to June 30 to a company called Meeting Street Services L.L.C. The money included $2.8 million for “placed media” and more for digital fund-raising, strategy and video production.Meeting Street Services has no online presence, and has not been paid by any other campaign, records show. Its listed address, in North Charleston, S.C., is a Staples store. Records show that the company was set up in Delaware in August 2022, and its incorporation documents list only one name — Barry M. Benjamin — as an authorized representative.According to business records in South Carolina, the company is managed by AMZ Holdings L.L.C., a company set up in May 2021 and based at the same Staples store in North Charleston. AMZ’s Delaware incorporation documents were also signed by Mr. Benjamin.Mr. Scott’s campaign did not provide information about Mr. Benjamin or further details about the companies. Efforts to independently determine Mr. Benjamin’s identity were unsuccessful.There are several notable absences in the campaign’s second-quarter filing, including Targeted Victory, a major political fund-raising firm that has said it works for the campaign, and FP1 Strategies, a political advertising firm, which was also reportedly brought on by the campaign. Several people from the two firms who are working for the campaign also do not appear in the disclosure.Mr. Scott’s use of Meeting Street Services L.L.C. predates his entry into the presidential race. In the last four months of 2022, his Senate campaign paid the company more than $4.5 million, filings show, for television ads, digital fund-raising and other consulting.And his presidential campaign reported an additional $1 million spent with Meeting Street Services in the first quarter of this year, even though his campaign had not officially begun.The Scott campaign also made more than $940,000 in payments last quarter to Advanced Planning and Logistics, a limited liability company set up in December 2022 — again, by Mr. Benjamin — and whose listed address is a Staples store in Fairfax, Va. The company received multiple payments for air travel and event production. Again, Mr. Scott’s campaign was the only campaign that paid the company.In 2020, the Trump campaign reported paying hundreds of millions of dollars to two companies, one set up by a former campaign manager and the other by campaign officials. Neither the campaign nor the companies themselves reported specifically what the money was being spent on.The Campaign Legal Center filed a complaint to the F.E.C., accusing the Trump campaign of using the companies as “conduits” to conceal other vendors. The commission’s general counsel recommended that the F.E.C. find that the campaign had broken the law by misreporting payments, and begin an investigation into the Trump campaign’s relationships with vendors and subvendors.But the commission deadlocked last year in a vote on the matter, which meant no action could be taken. The Campaign Legal Center sued the commission, but a federal judge — while expressing sympathy for the desire of transparency — dismissed the case late last year, saying that the commissioners had discretion.“It is a lot easier to follow the money when you have a paper trail,” the judge opened his opinion.The Campaign Legal Center has appealed.Kitty Bennett More

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    DeSantis’s Campaign Reboot Faces Donor Skepticism and Deepening Divisions

    As the Florida governor reboots in Iowa, tensions still plague the highest levels of his operation and a supportive super PAC.On the day his presidential campaign said it had laid off more than a third of its staff to address worries about unsustainable spending, Gov. Ron DeSantis of Florida began his morning by boarding a private jet to Chattanooga, Tenn.The choice was a routine one — Mr. DeSantis and his wife, Casey, haven’t regularly flown commercial for years — but also symbolic to close observers of his struggling presidential campaign. As Mr. DeSantis promises a reset, setting out on Thursday on a bus tour in Iowa to show off a leaner, hungrier operation, several donors and allies remained skeptical about whether the governor could right the ship.Their bleak outlook reflects a deep mistrust plaguing the highest levels of the DeSantis campaign, as well as its supporters and the well-funded super PAC, Never Back Down, bolstering his presidential ambitions.Publicly, the parties are projecting a stoic sunniness about Mr. DeSantis, even as he has sunk dangerously close to third place in some recent polls. They have said they are moving into an “insurgent” phase in which the candidate will be everywhere — on national and local media, and especially in Iowa.But privately, the situation is starkly different.Major Republican donors, including the hedge fund billionaire Kenneth Griffin, have remained on the sidelines because they are disappointed in his performance and his campaign, according to two people familiar with their thinking.DeSantis donors have specifically raised concerns about the campaign’s finances, which appear both troubling and persistently opaque. Some prominent vendors did not show up on the first Federal Election Commission report, raising questions about how much of the spending has been deferred and whether the campaign’s total reported cash on hand for the primary — $9.2 million — was even close to accurate.The campaign’s concerning financial situation prompted an all-hands review of the budget in recent weeks. This review extended to James Uthmeier, the chief of staff in the governor’s office and a longtime trusted aide. Mr. Uthmeier recently received a personal briefing on the campaign’s finances from an official, Ethan Eilon, with the blessing of campaign manager Generra Peck, and then delivered an assessment to the governor, according to two people briefed on the conversations.Asked about the briefing, Mr. Uthmeier responded by email to express strong confidence in Ms. Peck, who he said had “welcomed” him to help the campaign as a volunteer. He added that Mr. DeSantis “continues to receive support from tens of thousands” of donors and that he has “full confidence” in Mr. DeSantis’s “vision to beat Joe Biden and restore sanity.”In an attempt to assuage donors’ anxieties, Mr. DeSantis’s allies have promised a campaign pivot that includes a more open press strategy, humbler travel conditions and smaller events. Advisers say the governor will be promoting his vision for a “Great American Comeback” — a phrase they hope will also apply to his spiraling campaign. Mr. DeSantis, a big-state governor with little love for glad-handing, will have to prove he is up for the challenges.On Thursday, Mr. DeSantis began a two-day bus tour across central Iowa that is being organized almost entirely by the super PAC, Never Back Down. Announcements for the three meet-and-greet stops scheduled describe Mr. DeSantis as the “special guest.”In talking points provided to donors on the day of the layoffs, the campaign described the operation as “leaning into the reset.”“We will embrace being the underdog and use the media’s ongoing narrative about the campaign to fuel momentum on the ground with voters,” said the guidance.On Tuesday, the campaign confirmed it had fired 38 campaign officials this month in an attempt to shrink its payroll. It remains unclear how many of those are leaving the DeSantis orbit. Some have discussed joining nonprofit groups with close ties to Mr. DeSantis’s political operation, including one linked to Phil Cox, who was an adviser on the governor’s 2022 campaign.Among the known DeSantis vendors that did not show up on his first campaign filing are some companies — Ascent Media and Public Opinion Strategies — that are part of a consultancy umbrella group called GP3, in which Mr. Cox is a key financial partner. Mr. Cox, who has worked closely with some of the 2024 campaign leadership in the past and also spent a brief stint advising the super PAC, is now back informally involved with the DeSantis campaign and raising money.But Mr. DeSantis himself has yet to adopt his campaign’s newfound frugality. On Tuesday, he flew multiple trips on private planes to fund-raisers around Tennessee. The private flights help explain part of how the campaign has burned through cash in its first six weeks. His campaign’s first report showed that he had spent $179,000 in chartered plane costs, as well as $483,000 to a limited liability company for “travel.”On Thursday outside a small meat-processing facility in Lamoni, Iowa, Mr. DeSantis briefly addressed his use of private planes in response to a question from a reporter.“We do things based on R.O.I. and that’s on everything you do,” Mr. DeSantis said, using the acronym for “return on investment,” a business term. “If it’s not a good R.O.I., then we try something else.” He did not answer later when asked what return he was getting on flying private instead of commercial, as other candidates in the race are doing.Some of Mr. DeSantis’s rivals have been eager to point out their cost-saving measures. On Wednesday, Nikki Haley tweeted a photo with her flight attendant under the hashtag #WeFlyCommercial.What’s more, Mr. DeSantis and other parts of his operation showed little sign of a message shift.In an interview with the radio host Clay Travis that aired Wednesday, Mr. DeSantis said that he would consider picking Robert F. Kennedy Jr., a conspiracy theorist and anti-vaccine candidate running as a Democrat, to work at the F.D.A. or the C.D.C. The stunning remark prompted criticism from some prominent conservative writers, including at The National Review, where staff had once sounded bullish on a DeSantis candidacy.Later in the day, Mr. DeSantis’s campaign aide Christina Pushaw, who is known for fighting with reporters online, attacked the popular Republican Florida Representative Byron Donalds, who is Black, for criticizing his state’s new required teachings on slavery. By night’s end, the feud over Mr. Donalds devolved to the point where another DeSantis aide, Jeremy Redfern, got into a fight with a random Twitter user and posted her photo prominently in a tweet.At a donor retreat over the weekend — at a luxury ski resort in Park City, Utah, hired out for $87,000 — donors and allies, including Representative Chip Roy of Texas, had tough conversations with both the governor and his wife, a close adviser, about the structure and management of the campaign, according to two people who attended the retreat.Asked whether the congressman voiced concerns to Mr. DeSantis, Mr. Roy issued a statement saying only, “It’s not the campaign that needs to change; it’s the direction of our country. Governor DeSantis and his whole team are committed to doing just that.” His spokesman did not respond to a follow-up question.Much of the rancor stems from the strained but increasingly intertwined relationship between Mr. DeSantis’s campaign and his super PAC. Having raised $130 million, the super PAC has vastly more money than the campaign and has taken over basic campaign functions, including its voter contact operation — a highly unusual extent of involvement.The two entities — essentially a traditional campaign and a shadow one — are prohibited from coordinating strategy in private, but the campaign has aired its differences through a leaked memo. Ms. Peck, the campaign manager who has a close relationship with the governor and his wife, recently sent a memo to donors that appeared to call into question the super PAC’s decision to save money by staying off the airwaves in New Hampshire. The super PAC has since reserved airtime in the state, with advertising set to begin next week.Ms. Peck also has harshly criticized Never Back Down in private, according to a person with direct knowledge of her remarks.In response to questions about the distrust across the DeSantis orbit, the campaign’s communications director, Andrew Romeo, dismissed “palace intrigue.”“Our campaign is laser-focused on electing Ron DeSantis president, and we are nothing but grateful for groups like Never Back Down that are also working to support this mission,” he said.Erin Perrine, a spokeswoman for Never Back Down, declined to comment.On Tuesday night, only hours after the announcement of the layoffs, Mr. DeSantis returned to Tallahassee on a private plane.Back at his campaign headquarters, some staff members who hadn’t been fired brought in cases of beer to rally spirits after yet another dispiriting day. One staffer sarcastically described the evening to a friend as “the survivors party.”Nicholas Nehamas More