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    Candidates for Federal Office Can Raise Unlimited Funds for Ballot Measures

    The Federal Election Commission quietly issued an advisory opinion last week allowing candidates to raise unlimited money for issue-advocacy groups working on ballot measures in elections in which those candidates are on the ballot.The opinion, issued in response to a request from a Nevada-based abortion rights group, could significantly alter the landscape in the fall in terms of the capacity that candidates aligned with these groups have to help them raise money.The decision applies to all federal candidates, but with a presidential election taking place in six months, the biggest attention will fall to that race. If Mr. Biden can solicit money for abortion-rights ballot measures, he can add to an already-existing fund-raising advantage that his team currently has over Mr. Trump.The decision, released publicly last week but little noticed, could affect turnout in battleground states like Nevada where razor-thin margins will determine the election. In Arizona, an abortion rights group said it had the number of signatures required to put a referendum on the ballot. Florida — a state that has voted reliably for Republicans in recent presidential races — has a similar measure on the ballot.The advisory opinion means that both Mr. Biden and former President Donald J. Trump can raise money for outside groups pushing ballot measures. In the wake of the repeal of Roe v. Wade, the landmark 1973 U.S. Supreme Court decision, abortion ballot measures are expected to be a key focus for Democrats this fall.“I think it’s quite significant,” said Adav Noti, of the nonpartisan Campaign Legal Center, calling it an enormous change from prohibitions put in place by the landmark McCain-Feingold campaign finance bill in 2002.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Watchdog Group Accuses Trump Campaign of Violating Finance Law

    A campaign watchdog group filed a formal complaint to the Federal Election Commission on Wednesday accusing Donald J. Trump’s presidential campaign and related political committees of concealing payments of $7.2 million in legal fees by paying them through an unrelated shell company in violation of campaign finance law.At the center of the complaint, from the Campaign Legal Center, is the company that received the payments, Red Curve. The company is run by Bradley Crate, who is also the treasurer for the Trump campaign and four related political committees listed in the complaint, as well as for 200 other candidates and committees.In its complaint, the Campaign Legal Center said that the Trump political committees had used Red Curve, which did not appear to offer legal services, “as a conduit to conceal payments for legal services.” The group filed its complaint hours after The Daily Beast published an article about the payments to Red Curve.Neither Red Curve nor representatives of the Trump campaign responded to a request for comment.“This apparent payment scheme, however, violates the reporting requirements of the Federal Election Campaign Act,” the complaint said, “which requires that committees provide detailed information about who they are paying for services, and how much they are paying for those services.”The complaint also said that Red Curve advanced payments for the legal costs to the Trump committees as part of the payment scheme, potentially violating a campaign finance law that prevents corporations from giving money to candidates.“What Red Curve was doing was basically making a contribution,” said Saurav Ghosh, the director of federal campaign finance reform at the Campaign Legal Center. “If it’s treated as a corporation under federal campaign finance law, then that’s illegal on its face.”We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber? Log in.Want all of The Times? Subscribe. More

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    Haley Entered 2024 With $14.6 Million, Fueling Her Enduring Bid

    Nikki Haley, the last candidate standing between former President Donald J. Trump and the Republican nomination, raised $24 million in the last three months of 2023 and entered this year with $14.6 million in her campaign account, a hefty sum that has all but ensured she will have the money to press on with her insurgent bid for the White House.The final fund-raising numbers of last year do not reveal how much Ms. Haley, the former governor of South Carolina, has raised since she came in a distant third place in the Iowa caucuses on Jan. 15, then lost again in the New Hampshire primary election eight days later.But the filings with the Federal Election Commission on Wednesday do indicate that her frugal presidential campaign has kept a lid on spending as it has pressed for new contributions.“We are running a smart campaign and that means spending our money wisely,” said Olivia Perez-Cubas, a spokeswoman for the Haley campaign. “Seventy percent of Americans don’t want a Biden-Trump rematch, and we have the resources and energy to make sure that doesn’t happen.”While Ms. Haley’s campaign handled money carefully, a super PAC backing her, SFA Fund Inc., spent heavily on advertising in 2023. The group reported raising $50.2 million in the second half of 2023, for a total of $68.9 million all year, but spent nearly all of it, ending the year with about $3.5 million on hand.This week, Ms. Haley, who was Mr. Trump’s first ambassador to the United Nations, made her pitch to some of the wealthiest donors in the country, seeking their support as she continues a long-shot bid for the Republican nomination. And when the week is done, her aides say, she will sit down, as she has throughout her run, and personally review her campaign’s expenses.We are having trouble retrieving the article content.Please enable JavaScript in your browser settings.Thank you for your patience while we verify access. If you are in Reader mode please exit and log into your Times account, or subscribe for all of The Times.Thank you for your patience while we verify access.Already a subscriber?  More

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    Inside the Troll Army Waging Trump’s Online Campaign

    The video, called “Let’s Get Ready to Bumble,” is a slick mash-up of President Biden’s verbal slip-ups and his stumbles set to a thumping 1990s dance track. And when it was played on a big screen at Trump rallies late last year, it consistently drew laughs and jeers from the crowd.But Donald J. Trump thought he could improve it.So the former president asked an adviser to pass along a few notes to one of the video’s creators: It should include a clip of the president falling off a bicycle, he suggested, and another of him flubbing a line in a recent speech.The video’s co-creator — Bryan Heestand, a product engineer in Ohio who goes by the anonymous handle C3PMeme — rushed to incorporate the former president’s edits. He was delighted, he said later in a podcast interview, to see Mr. Trump play the new version at his final rally before the midterm elections, pausing his speech to watch it with well over a thousand supporters gathered at Dayton International Airport.“He had some suggestions. We made it happen,” Mr. Heestand said.Mr. Heestand doesn’t work for Mr. Trump, but he belongs to a small circle of video meme-makers who have effectively served as a shadow online ad agency for his presidential campaign. Led by a little-known podcaster and life coach, this meme team has spent much of the year flooding social media with content that lionizes the former president, promotes his White House bid and brutally denigrates his opponents.Much of the group, which refers to itself as Trump’s Online War Machine, operates anonymously, adopting the cartoonish aesthetic and unrelenting cruelty of internet trolls.Cheered on by Mr. Trump, the group traffics freely in misinformation, artificial intelligence and digital forgeries known as deepfakes. Its memes are riddled with racist stereotypes, demeaning tropes about L.G.B.T.Q. people and broad scatological humor.Their most vulgar invectives are often aimed at women, particularly those seen as enemies of Mr. Trump. In one video, the former United Nations ambassador Nikki Haley’s face is pasted on the body of a nearly naked woman, who kicks a man with the face of Gov. Ron DeSantis of Florida in the groin. Another depicts Casey DeSantis, the governor’s wife, as a porn star. Women with ties to Mr. DeSantis are often shown with red knees, suggesting they have performed a sex act.The former president and his inner circle have celebrated the group’s work and helped it reach millions. Dan Scavino, Mr. Trump’s social media adviser; Steven Cheung, the campaign’s spokesman; and Donald Trump Jr. frequently share the memes on their social media accounts.Since March, Mr. Trump has posted videos made by the team to his Truth Social and Instagram accounts — which have more than 30 million followers combined — at least two dozen times. He tends to share the group’s less crude content, favoring memes that feature him in a positive light.But Mr. Trump and his campaign have also taken a more active role in the group’s activities, a New York Times review found. Over the past year, he and his campaign have privately communicated with members of the meme team, giving them access and making specific requests for content. In at least one instance, the campaign shared behind-the-scenes footage to be used in videos, according to members of the team.Late last month, Mr. Trump sent personalized notes to several of the group’s members, thanking them for their work. In September, Jason Miller, a senior Trump campaign adviser, posted that the meme team was “single-handedly changing the landscape of politics and social media.”Asked by The Times about the group, the Trump campaign on Tuesday cast them as mere volunteers.“Every campaign in politics has volunteers and shows appreciation to their volunteers,” said Mr. Cheung, the campaign spokesman, adding that the group had done a “masterful job” highlighting Mr. DeSantis’s “insecurities and blunders.”Viral memes have played a role in presidential races since Barack Obama’s first run for the White House in 2008. But the meme team’s work — blessed by Mr. Trump, polished and substantially scaled up — represents an evolution with the potential to transform campaigning online.In an age of social media, the power of memes is rising as the influence of traditional television ads fades. Cheap to make and free to distribute, they are largely unconstrained by regulations about accuracy, fairness and transparency that apply to television and radio advertising. And they are proliferating just as fewer internet platforms try to police political content.“It’s ominous,” said Saurav Ghosh, a former Federal Election Commission lawyer who now works at the Campaign Legal Center, a government watchdog nonprofit.Mr. Ghosh said the meme team’s activities appeared to fit the definition of a super PAC — an entity that can raise and spend unlimited sums to support a candidate or issue but must report its donors and spending. Yet because the group operates outside the campaign finance system, its finances and funders remain unknown.The lack of transparency “creates an avenue for lots of money to be spent in coordination with a campaign and having a serious impact on races without the public having any sense of what’s really going on,” Mr. Ghosh said.‘It Doesn’t Have to Be True’At the center of Mr. Trump’s meme militia is Brenden Dilley, a 41-year-old podcaster, failed congressional candidate and self-described social media and political influencer. Mr. Dilley doesn’t create the memes himself, but he provides the organizing force and smash-mouth ethos driving the crew.“It doesn’t have to be true. It just has to go viral,” he has said on his podcast.Brenden Dilley, a life coach and onetime congressional candidate, is the ringleader of the meme team. His podcast offers a running narrative of the team’s work and ambitions.The group’s more than two dozen members, posting under the hashtag #DilleyMemeTeam, convene in a private Telegram channel to share ideas and pick targets. Many also faithfully tune into Mr. Dilley’s daily podcast, where he talks at length about the group’s activities, interacts with a small but devoted audience and promotes his 2013 self-help book, “Still Breathin’: The Wisdom and Teachings of a Perfectly Flawed Man.”Most of the meme-makers post anonymously. The Times used podcast transcripts, photographs, news footage and public records to identify Mr. Heestand, who declined to comment.While some members have sizable followings, they have also been amplified by high-profile right-wing figures. Roger Stone, a longtime friend and adviser to Mr. Trump, hosted Mr. Dilley on his podcast last week, saying that he had “changed the course of history in this country.” The right-wing podcaster Jack Posobiec and the internet troll known as Catturd, who each have more than two million followers on X, regularly share the group’s work.But the team’s content isn’t just niche entertainment for the profoundly online; many memes have broken through to the mainstream.A video calling President Biden a “puppet candidate” and filled with conspiracy theories about election fraud went viral in July after Frank Luntz, a Republican pollster, posted his criticism, calling it “the most alarming political ad I’ve seen this year.”In an interview, Mr. Luntz said he worried that such spots would soon become commonplace. “They have figured out how to manipulate the public,” Mr. Luntz said, “and they frankly don’t care about the consequences.”In August, when Mr. Trump was indicted on conspiracy charges related to his attempts to overturn the 2020 election in Georgia, several team members produced a music video targeting the Fulton County district attorney, Fani T. Willis. A Kanye West parody, it used artificial intelligence to mimic Mr. Trump’s voice rapping lyrics that were peppered with racist dog whistles.The initial posting on social media, by the meme team member Ramble_Rants, logged 1.4 million views on X and was widely shared on other platforms.Nobody has borne the brunt of the group’s attacks more than Mr. DeSantis.Ron and Casey DeSantis have been mocked relentlessly by the Dilley Meme Team, which takes credit for some of its insults having broken into the mainstream media. Meg Kinnard/Associated PressThe meme team has produced hundreds of derisive posts attacking the Florida governor’s masculinity, demeanor, marriage and parenting, and his height.The group’s members have described the onslaught as part guerrilla messaging aimed at shaping coverage of the race and part psy-op aimed at the candidate himself. They take credit for catapulting “bootgate” — the unproven rumor that Mr. DeSantis wears lifts in his cowboy boots — into the mainstream media. (Politico published a 1,400-word investigation into the candidate’s footwear in October.) They also claim its barrage of mockery is the reason Mr. DeSantis wears the boots in the first place.“They all went straight to his head,” Ramble_Rants posted last month.The DeSantis campaign did not respond to a request for comment.Mr. Dilley has sworn to “destroy” the governor’s career and make him “unelectable,” even if he drops out of the 2024 race. A recent Christmas-themed meme directed at Mr. DeSantis ended with: “Forever you will be mocked.”The Dilley Meme Team’s work is often cartoonish and rife with mockery, savaging Mr. Trump’s opponents while lionizing the former president. A video that focused on President Biden was played at Trump rallies last year. A recent meme delivered a message to Mr. DeSantis. Another appeared to use behind-the-scenes images of Mr. Trump. Mr. Dilley declined to be interviewed for this article, and the team subsequently produced a video mocking The New York Times. Mr. Dilley told his podcast listeners that he planned to hang a copy of this article next to a signed letter from Mr. Trump.“Thanks to your efforts,” that letter reads, according to photos posted to social media, “we exposed Joe Biden’s failures and lies for the whole country to see.”Gratitude and AccessMr. Dilley has been a supporter of Mr. Trump for years, and in 2018 he unsuccessfully ran for Congress in Arizona as a “staunch believer in the Make America Great Again movement.” But until recently, his devotion always came from a distance.Today, Mr. Dilley, who now lives north of Atlanta, says he has visited Mr. Trump’s Mar-a-Lago resort three times in the past year. He and his team have posted numerous photos of themselves posing with Mr. Trump, spending time with his advisers and attending events at Trump properties.During an episode of his show just before Thanksgiving, Mr. Dilley claimed to be texting one of those advisers, asking if he could join the former president at a football game at the University of South Carolina. That weekend, he and his wife were photographed by Mr. Miller in the governor’s box at Williams-Brice Stadium in Columbia, S.C., along with Mr. Trump.A video that Mr. Dilley’s wife, Reanna, shot of Mr. Trump walking on the field at halftime was subsequently viewed millions of times online and reposted by the former president on Truth Social.Like many other influencers, Mr. Dilley appears to receive talking points from the campaign. He also claims more exclusive access, describing phone calls from advisers to Mr. Trump to discuss memes his team is producing and whether they strike the desired tone.In July, one of the group’s most prolific contributors — a musician from outside San Diego named Michael Beatty, who goes by the handle Miguelifornia — mentioned that Mr. Scavino and Mr. Miller “gave us tons of great video” shot at a Trump rally in South Carolina.Days later, the team released a clip that appeared to use behind-the-scenes footage of Mr. Trump at a rally. The moody meme, cast in blue monochrome and set to a Phil Collins song, cast Mr. Trump as a serious, heroic leader and concluded with information on how to text a donation to the campaign.“This is a campaign ad if I’ve ever seen one,” one team member, who goes by MAGADevilDog, wrote on X.A Plan to Avoid ‘a Ton of Oversight’Because the Dilley Meme Team’s content is shared on the internet, rather than on television or radio, it generally isn’t subject to laws requiring ads to include disclosure about who paid for them.“If it goes on the internet, there’s essentially no regulation,” said Richard L. Hasen, an elections law expert at the University of California, Los Angeles. And without regulation, he added, it’s impossible to know who is paying for the content.But campaign finance experts pointed to two other unknowns about the Dilley Meme Team’s operations: coordination and compensation.If a group is receiving compensation to help a candidate get elected, then it could be considered a super PAC and should be registered and reporting its donors and spending.If it is not compensated but is coordinating with the campaign, then it may run afoul of strict limits on in-kind contributions, said Paul S. Ryan, who serves as deputy executive director of the pro-democracy group Funders’ Committee for Civic Participation.Mr. Ryan said receiving video footage that was not publicly available could be considered coordination.Memes created with input from the campaign, he said, “are just as good as a direct contribution to the campaign” and may be worth far more than the $6,600 individual limit per election cycle.Mr. Dilley and other members of the meme team often claim they receive no financial compensation for their efforts.“Everything they do, they do it for free and out of love of country,” said Alex Bruesewitz, a Republican strategist close to Mr. Trump, who frequently shares Dilley Meme Team posts.Mr. Dilley, who in 2019 was found to have failed to pay more than $24,000 in child support and interest, says he now makes “multiple six figures” a year. That income, he said on his podcast last month, comes from a combination of sources: podcast subscriptions and sponsors, sales of apparel, his life-coaching business and streaming revenue from the video platform Rumble, where the Dilley Show has more than 12,000 subscribers.“There’s nothing here that’s mysterious,” he said. “It’s all transparent.”Federal Election Commission records show no payments from any political committee to Mr. Dilley or other members of the meme team.Mr. Dilley has claimed to have received gifts from Mr. Trump. Last March, he posted video of a box filled with 28 Make America Great Again hats, each signed by the former president. The package was sent by the campaign in thanks for assisting with “rapid response” during President Biden’s State of the Union address, Mr. Dilley said.Signed MAGA hats can sell for as much as $1,000 on the secondary market.Mr. Dilley also said he got access to dozens of V.I.P. tickets to a Trump rally in Hialeah, Fla., on Nov. 8, which he gave to supporters of his show. It is unclear how much the tickets were worth, but tickets for other rallies have sold for as much as $1,500 apiece.Mr. Dilley has been clear that he is looking for more than just thank-you gifts.In October, he told his podcast audience that he wanted to use limited liability companies to receive money from Trump donors to fund his team’s work. The idea, he said, is to avoid “a ton of red tape” and “a ton of oversight” that come with operating as a super PAC or being paid by the campaign.“If you go super PAC or official campaign, you can get paid, but the problem is a lawyer has to watch every single thing you put out, and we don’t want that,” Mr. Dilley said on his podcast in October. “What we need is people that were going to give huge dollar amounts to the super PACs and the campaigns to just give directly to us.”“We already have L.L.C.s formed,” he added. “We’re ready to rock ’n’ roll.”Brett Kappel, a campaign finance lawyer who advises both Democrats and Republicans, described that plan as “problematic” because it implies a clear goal of circumventing public disclosure as required by the F.E.C.“People can take advantage of those failures of the regulatory system to promote the interests of a candidate without the public ever being aware of it,” Mr. Kappel said. In that landscape, he added, “L.L.C.s have become the tool of choice” because they can be layered to obscure both the source and recipient of payments.The Dilley Meme Team was registered as a business in July, using the address of a UPS store outside Tampa, according to Florida business records. Mr. Dilley acknowledged being involved in its parent company, Counter Productions Digital Media L.L.C., which was registered at the same address in early 2022. He denies having said he set up any L.L.C.s to avoid campaign finance rules.On his podcast, Mr. Dilley has laid out his vision for his team, saying he hopes to hire all 27 meme team members full time through the 2024 election. “We need 12 months of everyone full time working to meme Donald Trump back into the White House while destroying Joe Biden,” he said.Jaymin Patel contributed research. More

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    Biden Campaign Raises $71.3 Million in Third Quarter Alongside D.N.C.

    The president’s re-election campaign announced a substantial quarterly fund-raising haul, but it’s far short of what Donald J. Trump raised in the same quarter of his 2020 re-election campaign.President Biden’s re-election campaign announced on Sunday it had raised a combined $71.3 million alongside the Democratic National Committee and a joint fund-raising committee during the three-month period that ended in September, a haul that eclipses what his Republican rivals have amassed but falls short of where President Donald J. Trump was at this point four years ago.The campaign said the three fund-raising vehicles had a combined $90.5 million in cash on hand. It did not disclose how the cash was divided between the three fund-raising vehicles.“It was a spectacular quarter,” said Jeffrey Katzenberg, the Hollywood mogul whom Mr. Biden named a co-chairman of his campaign, said in an interview Saturday. “It certainly exceeded our own expectations around it significantly. The fact that we’re sitting with $91 million in the bank today is really an extraordinary advantage.”But Mr. Biden’s fund-raising haul is well short of the $125 million Mr. Trump and the Republican National Committee raised during the same period of his 2020 re-election campaign. And it is just a touch more than the $70.1 million President Obama and the D.N.C. raised at this point in his 2012 campaign — at a time when individual contribution limits were far lower than they are today.Mr. Katzenberg, in the interview, dismissed comparisons to such campaigns as “comparing apples to submarines.”Comparisons with Mr. Obama’s fund-raising efforts for the 2012 campaign are indeed imprecise, because a 2014 Supreme Court decision and other legal changes now allow candidates and parties to form joint fund-raising committees that can accept single donations of nearly $1 million. In 2012, Mr. Obama and the D.N.C. could collect only $30,500 per person.More revealing details about the Biden campaign’s financial status will emerge when the committees file quarterly reports required by the Federal Election Commission. Those are due by the end of Sunday; a campaign official said the reports would become public late Sunday evening.Among the most significant details in the campaign’s fund-raising report will be the amount of cash it has accumulated from donors who gave less than $200.These so-called small donors are vital to presidential efforts because they can be recruited to give again and again over the course of a long campaign. During the three-month fund-raising period that ended in June, $10.2 million of contributions to the Biden effort, or about 21 percent, came from small donors, an amount smaller in percentage and in real dollars than the Trump and Obama campaigns in the comparable time periods.While the Biden campaign has not disclosed how much of its haul came from small donors, an official, who requested anonymity because they were not authorized to speak for the campaign, did reveal that 49 percent of its $71.3 million came from donors who gave through the internet or mail programs. The campaign had expected that about 36 to 37 percent of third-quarter fund-raising would come online or through the mail.Mr. Biden’s fund-raising total far outpaces what his Republican rivals have reported for the third quarter.Mr. Trump’s campaign reported it raised $45.5 million, with $37.5 million in cash on hand. Gov. Ron DeSantis of Florida raised $15 million. Nikki Haley, the former governor of South Carolina, raised $11 million. Aides to Senator Tim Scott of South Carolina revealed to Republican donors this week that his campaign began October with $11.6 million in cash on hand, more than either Mr. DeSantis or Ms. Haley.The Biden campaign trumpeted an array of fund-raising figures that officials said proved that there was indeed enthusiasm for their candidate, even as polls show that Mr. Biden is unpopular and suggest that he has not engendered enthusiasm within his own party.The campaign said that it attracted 240,000 donors who had contributed to the campaign in 2020 and that 97 percent of contributions were less than $200. A contest for a chance to meet both Mr. Biden and Mr. Obama raised “nearly $2.5 million,” according to the campaign, while the sales of mugs with a picture of Mr. Biden’s face with the “Dark Brandon” meme brought in “close to $2 million” in August and September. More

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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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    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