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    How a Record Cash Haul Vanished for Senate Republicans

    The campaign arm of Senate Republicans had collected $181.5 million by the end of July — but spent 95 percent of it. A big investment in digital, and hyperaggressive tactics, have not paid off.It was early 2021, and Senator Rick Scott wanted to go big. The new chairman of the Senate Republican campaign arm had a mind to modernize the place. One of his first decisions was to overhaul how the group raised money online.Mr. Scott installed a new digital team, spearheaded by Trump veterans, and greenlit an enormous wave of spending on digital ads, not to promote candidates but to discover more small contributors. Soon, the committee was smashing fund-raising records. By the summer of 2021, Mr. Scott was boasting about “historic investments in digital fund-raising that are already paying dividends.”A year later, some of that braggadocio has vanished — along with most of the money.The National Republican Senatorial Committee has long been a critical part of the party apparatus, recruiting candidates, supporting them with political infrastructure, designing campaign strategy and buying television ads.By the end of July, the committee had collected a record $181.5 million — but had already spent more than 95 percent of what it had brought in. The Republican group entered August with just $23.2 million on hand, less than half of what the Senate Democratic committee had ahead of the final intense phase of the midterm elections.Now top Republicans are beginning to ask: Where did all the money go?The answer, chiefly, is that Mr. Scott’s enormous gamble on finding new online donors has been a costly financial flop in 2022, according to a New York Times analysis of federal records and interviews with people briefed on the committee’s finances. Today, the N.R.S.C. is raising less than before Mr. Scott’s digital splurge.Party leaders, including Senator Mitch McConnell, are fretting aloud that Republicans could squander their shot at retaking the Senate in 2022, with money one factor as some first-time candidates have struggled to gain traction. The N.R.S.C. was intended to be a party bulwark yet found itself recently canceling some TV ad reservations in key states.The story of how the Senate G.O.P. committee went from breaking financial records to breaking television reservations, told through interviews with more than two dozen Republican officials, actually begins with the rising revenues Mr. Scott bragged about last year.One fund-raising scheme by the N.R.S.C. involved text messages that asked provocative questions, including “Should Biden resign?” A request for cash that followed did not reveal where the money was going.Doug Mills/The New York TimesThe committee had squeezed donors with hyperaggressive new tactics. And all the money coming in obscured just how much the committee was spending advertising for donors. Then inflation sapped online giving for Republicans nationwide. And the money that had rolled in came at an ethical price.One fund-raising scheme used by the Senate committee, which has not previously been disclosed, involved sending an estimated millions of text messages that asked provocative questions — “Should Biden resign?” — followed by a request for cash: “Reply YES to donate.” Those who replied “YES” had their donation processed immediately, though the text did not reveal in advance where the money was going.Privately, some Republicans complained the tactic was exploitative. WinRed, the party’s main donation-processing platform, recently stepped in and took the unusual step of blocking the committee from engaging in the practice, according to four people familiar with the matter.The texts had been part of a concerted push that successfully juiced fund-raising, though it used methods that experts say will eventually exhaust even the most loyal givers.One internal N.R.S.C. budget document from earlier this year, obtained by The Times, shows that $23.3 million was poured into investments to find new donors between June 2021 and January 2022. In that time, the contributors the organization found gave $6.1 million — a more than $17 million deficit.Mr. Scott declined an interview request. His staff vigorously denied financial struggles, said some of the canceled television ads had been rebooked, and argued the digital spending would prove wise in time.More Coverage of the 2022 Midterm ElectionsAn Upset in Alaska: Mary Peltola, a Democrat, beat Sarah Palin in a special House election, adding to a series of recent wins for the party. Ms. Peltola will become the first Alaska Native to serve in Congress.Evidence Against a Red Wave: Since the fall of Roe v. Wade, it’s hard to see the once-clear signs of a Republican advantage. A strong Democratic showing in a New York special election is one of the latest examples.G.O.P.’s Dimming Hopes: Republicans are still favored in the fall House races, but former President Donald J. Trump and abortion are scrambling the picture in ways that distress party insiders.Digital Pivot: At least 10 G.O.P. candidates in competitive races have updated their websites to minimize their ties to Mr. Trump or to adjust their uncompromising stances on abortion.“We made the investment, we’re glad we did it, it will benefit the N.R.S.C. and the party as a whole for cycles to come,” said Chris Hartline, a spokesman for Mr. Scott and the committee.Yet as Republican chances to retake the Senate have slipped, a full-blown case of finger-pointing has erupted across Washington, with Mr. Scott a prime target. His handling of the committee’s finances has become conflated with other critiques, especially a flawed field of Republicans who have found themselves outspent on television.Mr. Scott’s please-all-sides decision to stay out of contested 2022 primaries has been second-guessed, including by Mr. McConnell. Mr. Scott’s detractors accuse him of transforming the N.R.S.C. into the “National Rick Scott Committee” — and a vehicle for his presidential ambitions.“The spending wouldn’t matter if the polling numbers looked better,” said Liam Donovan, a Republican lobbyist and N.R.S.C. donor. “To the extent the red wave is receding, people look for someone to blame.”The financial fortunes of the group alone will not sink Republican chances in November. A super PAC aligned with Mr. McConnell has more than $160 million in television reservations booked after Labor Day.Mr. Hartline dismissed those questioning the group’s digital spending as “disgruntled former staff and vendors.” He said the $28 million invested had tripled its file of email addresses and phone numbers and added 160,000 donors.“Our goal is to build the biggest G.O.P. digital file to help the party now and in the future,” he said. He declined to discuss the texting scheme.Mr. Hartline said the Senate Democratic arm has more money because it had not yet spent significantly on television. Mr. Scott, he said, had strategically spent early, with nearly $30 million on ads aiding Republicans through July.That sum, however, is actually less than the $37.4 million the G.O.P. committee reported in independent expenditures for candidates as of the same date two years ago.A huge online outlayFor months last year, the National Republican Senatorial Committee was far and away the nation’s biggest online political advertiser, outspending every other party committee combined and pouring money into platforms like Google at levels almost unseen except in the fevered final days of 2020.The sums were so breathtakingly large — peaking at more than $100,000 a day on Facebook and Google — that some concerned Democrats began to study the ads, fretting that somehow Republicans had unlocked a new sustainable way to raise money online.They had not.The Senate Republican bet had been this: By spending vast amounts early, the party could vacuum up contact information for millions of potential donors who could then give repeatedly over the coming months. 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    With Midterms Looming, McConnell’s Woes Pile Up

    The minority leader who takes pride in his status as the “grim reaper” of his rivals’ agenda has allowed Democrats to claim policy victories as his party’s hopes of reclaiming the Senate dim.WASHINGTON — Senator Mitch McConnell of Kentucky, the minority leader, spent the summer watching Democrats score a series of legislative victories of the sort he once swore he would thwart.His party’s crop of candidate recruits has struggled to gain traction, threatening his chances of reclaiming the Senate majority.And this week, his dispute with the leader of the Republicans’ Senate campaign arm escalated into a public war.As the Senate prepares to return to Washington next week for a final stint before the midterm congressional elections, Mr. McConnell is entering an autumn of discontent, a reality that looks far different from where he was expecting to be at the start of President Biden’s term.Back then, the top Senate Republican spoke of dedicating himself full time to “stopping this new administration” and predicted that Democrats would struggle to wield their razor-thin majorities, giving Republicans an upper hand to win back both the House and the Senate.Instead, the man known best for his ability to block and kill legislation — he once proclaimed himself the “grim reaper” — has felt the political ground shift under his feet. Democrats have, in the space of a few months, managed to pass a gun safety compromise, a major technology and manufacturing bill, a huge veterans health measure, and a climate, health and tax package — either by steering around Mr. McConnell or with his cooperation.At the same time, the Supreme Court decision overturning Roe v. Wade appears to have handed Democrats a potent issue going into the midterm elections, brightening their hopes of keeping control of the Senate.Mr. McConnell has acknowledged the challenges. He conceded recently that Republicans had a stronger chance of winning back the House than of taking power in the Senate in November, in part because of “candidate quality.”The comment was widely interpreted to reflect Mr. McConnell’s growing concern about Republicans’ roster of Senate recruits, heavily influenced by former President Donald J. Trump and his hard-right supporters, who have earned Mr. Trump’s endorsement but appear to be struggling in competitive races.It also hinted at a more basic problem that has made Mr. McConnell’s job all the more difficult: his increasingly bitter rift with Mr. Trump, which has put him at odds with the hard-right forces that hold growing sway in the Republican Party.More Coverage of the 2022 Midterm ElectionsAn Upset in Alaska: Mary Peltola, a Democrat, beat Sarah Palin in a special House election, adding to a series of recent wins for the party. Ms. Peltola will become the first Alaska Native to serve in Congress.Evidence Against a Red Wave: Since the fall of Roe v. Wade, it’s hard to see the once-clear signs of a Republican advantage. A strong Democratic showing in a New York special election is one of the latest examples.G.O.P.’s Dimming Hopes: Republicans are still favored in the fall House races, but former President Donald J. Trump and abortion are scrambling the picture in ways that distress party insiders.Digital Pivot: At least 10 G.O.P. candidates in competitive races have updated their websites to minimize their ties to Mr. Trump or to adjust their uncompromising stances on abortion.“Why do Republicans Senators allow a broken down hack politician, Mitch McConnell, to openly disparage hard working Republican candidates for the United States Senate,” Mr. Trump wrote in a social media post last month that also took aim at Mr. McConnell’s wife, Elaine Chao, calling her “crazy.” Ms. Chao served as transportation secretary in the Trump administration until she abruptly resigned after the Jan. 6 attack.Anti-Trump conservatives argue that Mr. McConnell put himself in an untenable position by failing to fully repudiate Mr. Trump after the assault on the Capitol, when the Kentucky Republican could have engineered a conviction at Mr. Trump’s impeachment trial, removing him and barring him from holding office again.“It’s like the zombie movie where he comes back to haunt and horrify you,” said Bill Kristol, the conservative columnist. Mr. McConnell, he said, “thought he could have a good outcome legislatively and politically in 2022 without explicitly pushing back on Trump. That was the easier course. It may turn out to be a very self-defeating course for him.” More

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    Read the FEC Complaint a Liberal Group Filed Against Trump

    AMERICAN

    BRIDGE

    21ST CENTURY

    Once he made the private decision to become a candidate, Mr. Trump was obligated to file a Statement of Candidacy with the Commission within 15 days of receiving contributions or making expenditures of more than $5,000 to influence his election, either directly or through third parties. 26 This Statement of Candidacy has not yet been filed. Yet, subsequent to several of his public remarks about a 2024 candidacy, Mr. Trump’s leadership committee, Save America, has spent more than $100,000 per week on Facebook ads and has consistently raised more than $1 million per week.27 Save America’s ads are clearly an attempt to influence Mr. Trump’s election to federal office in 2024.28 Commission regulations specify that an individual becomes a federal candidate when he has 1) consented to expenditures beyond $5,000 on his behalf, and 2) those expenditures have been made.29 Because he sponsors Save America, Donald Trump has consented to Save America’s expenditures on his behalf, which greatly exceed $5,000, and thus he has become a federal candidate. ³

    30

    Google Transparency Report, Save America Joint Fundraising Committee (Feb. 9, 2022, 3:30 P.M.), https://transparencyreport.google.com/political

    ads/advertiser/AR386358112438714368/creative/CR536153033986277376 (“Biden has turned his back on America, and completely failed the American people. Biden is Weak. We all know it.”). 26 52 U.S.C. § 30101(2)(B); 11 C.F.R. § 100.3(a).

    27 Michael Scherer & Josh Dawsey, Trump Looks To 2024, Commanding a Fundraising Juggernaut, as He Skirts Social Media Bans, WASH. POST (Oct. 30, 2021, 6:00 AM),

    07223c50280a_story.html.

    28 Kayla Gogarty, Facebook Is Letting Trump’s PAC Run Ads Implying He Is The “True President”, MEDIA MATTERS (Oct. 4, 2021, 3:10 PM), https://www.mediamatters.org/facebook/facebook-letting-trumps-pac-runads-implying-he-true-president (“Our latest study has found that Trump’s PAC has created over 1,600 ads since we last reported in August. Among these new ads, 186 pushed election misinformation, 322 were about Trump’s September rally in Georgia, and 139 were about Trump’s October rally in Iowa.”).

    11 C.F.R. § 100.3(a)(2).

    30 See, e.g., Jason Lange & Alexandra Ulmer, Trump Fundraising Slows but Still Yields Over $100 Million in Cash, REUTERS (Feb. 1, 2022, 1:55 AM), https://www.reuters.com/world/us/trumps-fundraising-groups-haveover-122-mln-cash-2022-01-31/ (“Trump is spending large sums to hold political rallies that ostensibly support Republican candidates but which feature his own speeches as the main event.”).

    800 Maine Ave SW, suite 400 Washington DC 20024 | 202.747.2060

    29 More

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    Read the FEC Complaint a Conservative Group Filed Against Biden

    STATEMENT OF FACTS

    9. President Joseph R. Biden, Jr. was elected as President of the United States in 2020 and was sworn in on January 20, 2021.²

    10. Since January 20, 2021, President Biden’s principal campaign committee, Biden for President, has spent more than $5 million dollars, including $1 million on “text message/email

    outreach” and almost $250,000 on a “database subscription” – thereby exceeding the $5,000 threshold to be declared a candidate.³

    11. In addition to significant campaign expenditures, President Biden’s White House staff, spokespersons, Vice President, and surrogates have made numerous on-the-record statements indicating that he has commenced his candidacy for the 2024 presidential election.

    12. Beginning in November of 2021, in response to a reporter’s question, “[t]here were reports that President Biden was telling allies that he is going to run for re-election in 2024. Can you confirm, is he going to run in 2024? Is he telling staff that?,” then-White House Press Secretary Jen Psaki stated, “[h]e is, that’s his intention.”4

    13. President Biden’s current Press Secretary – Karine Jean-Pierre – conclusively stated on June 13, 2022, “[y]es, he’s running for reelection. I’m I can’t say more than that.” Later that day, she doubled down and tweeted that, “[t]o be clear, as the President has said repeatedly, he plans to run in 2024,” and a month later again tweeted that, “[t]he president has been very clear about this. He intends to run in 2024.”5

    14. U.S. Transportation Secretary Pete Buttigieg has also gone on-the-record to discuss President Biden’s campaign for reelection, stating, “I’m looking forward to supporting the president’s reelection. Ah, that is as much as I can say about these things while I’m here on an official…capacity”

    15. President Biden himself has gone so far as to confirm that Vice President Kamala Harris will be his running mate in 2024: “Yes’ and ‘yes,’ Biden responded during his first news conference of the year [2022] when a reporter asked whether Harris would be on his ticket and whether he thought she was doing a good job on voting rights policies.”

    16. Vice President Kamala Harris emphatically told CNN’s Dana Bash – when asked about the president’s campaign for reelection in 2024 – that, “Joe Biden is running for reelection and I will be his ticket mate…Full stop. That’s it.”

    998

    17. Public reporting has stated that, “[i]n public and private, Biden himself has emphasized that he is running, effectively shutting down any discussion of the topic between the president and

    2 Toluse Olorunnipa and Annie Linskey, Joe Biden is Sworn In as the 46th President, Pleads for Unity in Inaugural Address to a Divided Nation, The Washington Post (Jan. 20, 2021).

    3 Federal Election Commission, Statement of Organization, Biden for President (Apr. 25, 2019). Federal Election Commission, Disbursements (search for spender “Biden for President” and Disbursement Type “Made By Presidential Committees: Operating Expenditures,” time period “1/20/21 to date”); Federal Election Commission, Disbursements (search for spender “Biden for President” and Disbursement Detail “text message/email outreach,” reporting time period “2021-2022”); Federal Election Commission, Disbursements (search for spender “Biden for President” and Disbursement Detail “database subscription,” reporting time period “2021-2022”); 11 C.F.R. § 100.3.

    4 Steve Nelson, Psaki Says Biden Still Intends to Run in 2024 Despite Poor Polls, Old Age, New York Post (Nov. 22, 2021).

    5 The White House, Press Briefing by Press Secretary Karine Jean-Pierre (June 13, 2022); Karine Jean-Pierre (@PressSec), Twitter (June 13, 2022); CBS News (@CBSNews), Twitter (July 28, 2022).

    6 CNBC, Squawk Box, Squawk Newsmaker: Prices at the Pump: Transportation Secretary Weighs In, Clip begins at 0:54 (Aug. 4, 2022).

    7 Claire Rafford, Biden Commits to Harris as His Running Mate for 2024, Politico (Jan. 19, 2022).

    8 Dana Bash (@DanaBashCNN), Twitter (June 27, 2022).

    2 More

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    Gov. Kathy Hochul Seeks Donations From Cuomo Appointees

    Gov. Kathy Hochul’s campaign says contributions from board and commission members and their families are fair game because she did not appoint them.ALBANY, N.Y. — On the road to building one of the largest campaign war chests the state of New York has ever seen, Gov. Kathy Hochul has been taking money from appointees of the governor — despite an executive order designed to prevent it.In her first year in office, Ms. Hochul has accepted more than $400,000 from appointees on boards from Buffalo to Battery Park City as well as the appointees’ spouses, a New York Times analysis of campaign finance data has found.The fund-raising has occurred despite the longstanding executive order — reissued by Ms. Hochul on her first day in office — that prohibits such transactions in order to avoid even the appearance of rewarding donors with jobs in exchange for contributions.Ms. Hochul’s campaign said it was appropriate to accept the contributions because they came from people appointed by her predecessor, Andrew M. Cuomo. The argument underscored a loophole in the ethics order that would seem to allow one governor to accept money from another governor’s board and commission appointees. In some cases, Ms. Hochul received donations from people Mr. Cuomo had appointed and then gave them new appointments.A spokesman for Ms. Hochul’s campaign, Jerrel Harvey, said that Ms. Hochul had not accepted money from people she appointed and emphasized that all of her fund-raising had been aboveboard.“We’ve been clear from the beginning of Governor Hochul’s term that people who are appointed by her are prevented from donating once they are appointed,” Mr. Harvey said. “We have followed that straightforward standard consistently and strictly.”But legal experts and good government advocates have called Ms. Hochul’s reasoning into question.“It’s a silly argument to say if I appointed you then you can’t contribute to me, but if my predecessor appointed you, then I can hit you up for donations,” said Bruce Green, a professor at Fordham University Law School and a former member of the New York City Conflicts of Interest Board. “Going forward, presumably, they’re both going to want to be reappointed.”Ms. Hochul has already raised some $35 million and set a goal of raising as much as twice that amount ahead of the general election in November. Cindy Schultz for The New York TimesThe donations that Ms. Hochul accepted from appointees represent just a small portion of her campaign’s huge haul ahead of the election in November. She has already raised some $35 million and set a goal of raising as much as twice that amount, people familiar with her plans said. Doing so would put the 2022 governor’s race at or near the most expensive in state history.Ms. Hochul, a Democrat who was sworn in as governor after Mr. Cuomo resigned amid a scandal last year, easily defeated two primary rivals this summer and is heavily favored to win against Representative Lee Zeldin, a Republican, in the fall.Although she has promised a clean break from the ways of her predecessor, Ms. Hochul’s willingness to raise money from appointees runs counter to that pledge. Mr. Cuomo was known for taking a hawkish approach to soliciting donations from the people he appointed, raising ethics concerns.Ms. Hochul’s campaign has not shrunk from accepting donations from Mr. Cuomo’s appointees, receiving more than $250,000 from them, records show.She got more than $56,000 from the real estate developer Don Capoccia, whom Mr. Cuomo appointed to the Battery Park City Authority in 2011 and who did not respond to requests for comment.She accepted more than $90,000 between October and May from a trial lawyer, Joe Belluck, who was chosen by Mr. Cuomo for two statewide panels, and his wife. Ms. Hochul appointed Mr. Belluck to the state’s new Cannabis Advisory Board in June.Mr. Belluck scoffed at the notion of any impropriety in his donation.“I receive no remuneration and do no business with the state, period,” he said. “I have no private interests related to these positions. I donate to Governor Hochul because I support her policies and admire her leadership, and I am honored to serve.”Ms. Hochul also received $45,200 from John Ernst, an heir to the Bloomingdale’s fortune, whom Mr. Cuomo appointed to the Adirondack Park Agency board in 2016, and Mr. Ernst’s wife. Less than three weeks after receiving those donations, she reappointed Mr. Ernst to the park agency’s board and made him chairman.Mr. Ernst said he initially turned down Ms. Hochul’s offer of the chairmanship, which comes with a $30,000 annual salary, and emphatically denied any connection between his donating and being appointed to the position.“If I had thought it was a conflict, I wouldn’t have done it — wouldn’t have made a contribution,” he said. “I did it independently as a citizen because I believed in Kathy Hochul.”A spokeswoman for the governor’s office, Julie Wood, said Ms. Hochul has applied the ethics order far more “broadly and strictly” than Mr. Cuomo did, saying his administration “violated their own rules.”“Governor Hochul holds herself to a higher ethical standard,” Ms. Wood said.Ms. Hochul has also accepted contributions and then appointed the donors to state boards and commissions. She received $3,000 from Robert Simpson, the chief executive of a Syracuse nonprofit that promotes economic development, in two donations and named him to the board of Empire State Development, New York’s economic development agency, less than a month after the second one.A spokeswoman for Mr. Simpson said that after he assumed the post he adopted policies to limit conflicts of interest and pledged to no longer contribute to or raise money for Ms. Hochul.Ms. Hochul accepted more than $7,800 from Janice Shorenstein, the mother of Ms. Hochul’s former transition director, Marissa Shorenstein, and Janice Shorenstein threw a fund-raiser for the governor in May. Marissa Shorenstein, who attended the event, was confirmed to the New York State Gaming Commission about two weeks later. Ms. Shorenstein and her mother did not respond to requests for comment left at their offices.And Ms. Hochul accepted another $5,000 in April from Sammy Chu, a Long Island businessman whose company also paid more than $2,100 for a Hochul fund-raiser in Plainview two days later. In late May, she tapped him for a spot on the Metropolitan Transportation Authority.Mr. Chu said he learned of the rules against governors’ accepting money from appointees only when The Times informed him of them in August.“There was certainly no quid pro quo,” Mr. Chu said. “Now that I’m appointed to the board, you know, I’ll be hypervigilant about it. But at that time, I was not a nominee or a board member.”Taken together, records show, Ms. Hochul accepted at least 40 donations totaling more than $475,000 from her nominees or Mr. Cuomo’s appointees and their family members. Those appointees are sitting on more than 20 boards, commissions and public authorities across New York, including the State University of New York board, the Port Authority of New York and New Jersey, the New York Power Authority and the United Nations Development Corporation.Ms. Hochul’s campaign stressed that she had been careful not to take contributions from any person she appointed to a state position. In at least one case, The Times found, Ms. Hochul accepted contributions from a person appointed by Mr. Cuomo, appointed that person to a different commission and then declined to accept further contributions from him.While none of the donations accepted by Ms. Hochul’s campaign from her own appointees appeared to violate any rules, they nevertheless might create the appearance of impropriety, legal experts said.Some might feel pressure to give to an elected official with power over their appointed positions. Others who wish to be appointed might donate in hopes of getting the job, said Kathleen Clark, a Washington University law professor.“It may appear that the way to get appointed is to give money or to hold fund-raisers,” Professor Clark said, adding: “The scandal is what we allow rather than what we prohibit.”For her part, Ms. Hochul has dismissed any suggestion that her fund-raising practices might raise ethical concerns. When a reporter asked at a recent news conference if she worried about the optics of taking campaign money from people who are doing business with the state, she bristled.“I will say one sentence on this,” she said. “I follow all the rules, always have, always will.”Nicholas Fandos More

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    An Unusual $1.6 Billion Donation Bolsters Conservatives

    WASHINGTON — A new conservative nonprofit group scored a $1.6 billion windfall last year via a little-known donor — an extraordinary sum that could give Republicans and their causes a huge financial boost ahead of the midterms, and for years to come.The source of the money was Barre Seid, an electronics manufacturing mogul, and the donation is among the largest — if not the largest — single contributions ever made to a politically focused nonprofit. The beneficiary is a new political group controlled by Leonard A. Leo, an activist who has used his connections to Republican donors and politicians to help engineer the conservative dominance of the Supreme Court and to finance battles over abortion rights, voting rules and climate change policy.This windfall will help cement Mr. Leo’s status as a kingmaker in conservative big money politics. It could also give conservatives an advantage in a type of difficult-to-trace spending that shapes elections and political fights.The cash infusion was arranged through an unusual series of transactions that appear to have avoided tax liabilities. It originated with Mr. Seid, a longtime conservative donor who made a fortune as the chairman and chief executive of an electrical device manufacturing company in Chicago now known as Tripp Lite.Rather than merely giving cash, Mr. Seid donated 100 percent of the shares of Tripp Lite to Mr. Leo’s nonprofit group before the company was sold to an Irish conglomerate for $1.65 billion, according to tax records provided to The New York Times, corporate filings and a person with knowledge of the matter.The nonprofit, called the Marble Freedom Trust, then received all of the proceeds from the sale, in a transaction that appears to have been structured to allow the nonprofit group and Mr. Seid to avoid paying taxes on the proceeds.For perspective, the $1.6 billion that the Marble trust reaped from the sale is slightly more than the total of $1.5 billion spent in 2020 by 15 of the most politically active nonprofit organizations that generally align with Democrats, according to an analysis by The Times. That spending, which Democrats embraced to aid the campaigns of Joseph R. Biden Jr. and his allies in Congress, dwarfed the roughly $900 million spent by a comparable sample of 15 of the most politically active groups aligned with the Republican Party.The Marble Freedom Trust could help conservatives level the playing field — if not surpass the left — in such nonprofit spending, which is commonly referred to as dark money because the groups involved can raise and spend unlimited sums on politics while revealing little about where they got the money or how they spent it.In a statement, Mr. Leo cited some of the left’s biggest donors and an advisory firm that helps manage the nonprofit groups they fund.“It’s high time for the conservative movement to be among the ranks of George Soros, Hansjörg Wyss, Arabella Advisors and other left-wing philanthropists, going toe-to-toe in the fight to defend our constitution and its ideals,” Mr. Leo said. Mr. Seid and an associate did not respond to messages seeking comment.More Coverage of the 2022 Midterm ElectionsChallenging DeSantis: Florida Democrats would love to defeat Gov. Ron DeSantis in November. But first they must nominate a candidate who can win in a state where they seem to perpetually fall short.Uniting Around Mastriano: Doug Mastriano, the far-right G.O.P. nominee for Pennsylvania governor, has managed to win over party officials who feared he would squander a winnable race.O’Rourke’s Widening Campaign: Locked in an unexpectedly close race against Gov. Greg Abbott, Beto O’Rourke, the Democratic candidate, has ventured into deeply conservative corners of rural Texas in search of votes.The ‘Impeachment 10’: After Liz Cheney’s primary defeat in Wyoming, only two of the 10 House Republicans who voted to impeach Mr. Trump remain.The Marble Freedom Trust’s formation in May 2020, the donation of Tripp Lite shares by Mr. Seid, and Mr. Leo’s role have not been previously reported.The funds are difficult to trace through public records. Tripp Lite is a private company that is not subject to corporate disclosure rules for public companies. On its tax filing, Marble indicated that the $1.6 billion came from the “sale of gifted company and subsidiaries,” but indicated that it withheld identifying information “to protect donor confidentiality.”And Eaton, the publicly traded Irish company that bought Tripp Lite, does not refer to Marble in statements related to the sale.The person with knowledge of the matter said that the Tripp Lite shares were donated to Marble months before the deal with Eaton was announced in January 2021. The sale was completed in March 2021.Katy Brasser, a spokeswoman for Eaton, said in a statement, “We have no additional information to share regarding the acquisition that was announced last year.”Ray D. Madoff, a professor of tax law at Boston College who is the director of the school’s Forum on Philanthropy and the Public Good, said the structure of the transaction was most likely legal but did appear to allow a donor to avoid federal tax obligations from the sale of the company.Here is how it works: Marble Freedom Trust is registered under a section of the tax code — 501(c)4 — for organizations that focus primarily on what the Internal Revenue Service calls “social welfare” and as a result are exempt from paying taxes. Such groups are allowed to engage in political advocacy, but their supporters are not entitled to deduct donations from their income taxes. Supporters can, however, donate assets that a nonprofit can sell and avoid capital gains taxes on the sale. More

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    Outside Money Floods New York Congressional Races

    In a feverish House race across Manhattan, a dark-money super PAC has spent more than $200,000 reminding voters that an incumbent congresswoman, Carolyn Maloney, once indulged doubts about vaccines.Out east in Suffolk County, cryptocurrency interests have spent more than $1 million on ads disparaging a former Navy officer in a Republican primary for Congress and supporting his opponent, a cryptocurrency booster, according to AdImpact, an ad tracking firm.And in the city’s northern suburbs, a police union PAC has spent more than $200,000 on ads calling a Democratic candidate a “radical extremist” who “left her community crime-ridden.” Those grim warnings, delivered over a soundtrack of gunshots, breaking glass and crackling fire, target a state senator, Alessandra Biaggi, and benefit her opponent in the 17th Congressional District, Representative Sean Patrick Maloney, the chair of the Democratic Congressional Campaign Committee.A rising tide of lightly regulated outside money is pouring into New York State: As of Thursday, with the Aug. 23 primary date looming, outside entities have spent about $9 million in state congressional primaries, according to data maintained by Open Secrets, a government transparency group. In 2018, outside entities spent roughly $2.6 million.Some of the players are familiar, including real estate and police groups. Others, like the super PAC targeting Ms. Maloney in the 12th District, have yet to identify their donors. The treasurer for that PAC, Brandon Philipczyk, did not respond to requests for comment. Berlin Rosen, a New York consultancy, is also involved.The thrust of the ad campaign taking aim at Ms. Maloney mirrors the messaging that her chief primary opponent, Representative Jerrold Nadler, has put in his campaign website’s so-called red box. Campaigns use language hidden in such boxes on their websites to communicate indirectly with super PACs that might support them.A spokesman for the Nadler campaign declined to comment.“I am disappointed that my colleague and friend, Congressman Nadler, has resorted to using dark-money funded attack ads against me to mislead voters in a desperate attempt to win this election,” Ms. Maloney said in a statement that also apologized for her past remarks on vaccines. “Voters are used to seeing these kinds of dirty campaign tactics from Republicans, but I expected more of Congressman Nadler.”In New York City’s other marquee House primary contest, for the 10th Congressional District encompassing parts of Brooklyn and Lower Manhattan, money also looms as a factor, but much of it is coming directly from one of the leading candidates, Daniel Goldman.Mr. Goldman, the heir to the Levi Strauss fortune who prosecuted the first impeachment case against Donald J. Trump, has put at least $4 million of his own money into the race.Daniel Goldman has put at least $4 million of his own money into the race for Congress in the 10th District.Anna Moneymaker/The New York TimesBut super PAC money is also playing a role in the race. A new super PAC called New York Progressive, Inc. has begun distributing literature targeting Yuh-Line Niou, a left-leaning state assemblywoman, for opposing an affordable housing development for seniors — part of a $225,000 expenditure. The treasurer of the PAC, Jeffrey Leb, typically raises money for such efforts from real estate interests. He declined to comment.And on Thursday, a super PAC called Nuestro PAC announced it would spend half a million dollars on behalf of one of Ms. Niou’s rivals, Carlina Rivera.North of the city, Mr. Maloney is benefiting from expenditures by the Police Benevolent Association of the City of New York, which endorsed Mr. Trump’s re-election campaign. More