More stories

  • in

    Packed Pacs: how billionaires in the US are bankrolling Republicans at the state level

    Billionaires are increasingly bankrolling Republican candidates in state legislative races across the US to push a rightwing agenda and gain long-term hegemony.The concerted effort shows that Donald Trump ally Elon Musk, currently throwing his weight behind a candidate for Wisconsin’s state supreme court, is far from alone in seeking to build influence at the grassroots.According to a research document obtained by the Guardian, the contributions are not limited to federal elections but extend to state-level campaigns and aim to influence policy at the state level. Priorities include dismantling government, targeting “culture war” issues – particularly abortion – and advancing school privatisation.In Virginia, for example, donors Thomas Peterffy and Jeff Yass contributed significantly to Governor Glenn Youngkin’s political action committee (Pac) Spirit of Virginia. Peterffy gave $3m while Yass added $2m. Spirit of Virginia spent more than $8m supporting Republican candidates in the 2023 Virginia general assembly elections.Democratic state house leader Don Scott was quoted by the Axios website as saying that Republicans were relying on “nameless, faceless, out-of-state mega-donors who have been pouring millions into the Commonwealth to push right-wing policies with no regard to what Virginians actually want”.In Michigan, the DeVos family, including former education secretary Betsy DeVos, donated more than $4.4m to state Republican candidates and causes in 2024. More than $1m combined went to the Michigan house and senate Republican Pacs.The DeVos family is known for promoting “school-choice policies”, specifically the expansion of charter schools. The Bridge Michigan news site reported “no individual has shaped school policy as much as Betsy DeVos”, contributing to Michigan having “some of the nation’s highest concentrations of charter schools run by for-profit companies”.In Wisconsin, Diane Hendricks and Elizabeth Uihlein contributed a combined $7m to Republican legislative campaign committees in 2024. Hendricks has a long history of influencing Wisconsin politics, including pushing for “right-to-work” legislation. The Uihleins have backed efforts to make it harder to receive unemployment benefits, oppose Medicaid expansion and create barriers to voting.In Pennsylvania, Yass, who is the state’s wealthiest billionaire, funded Pacs that reportedly spent nearly $4.4m to unseat Pennsylvania house Democrats. Yass-affiliated Pacs supported candidates who sponsored a near-total abortion ban. Since the 2018 cycle, these Pacs gave “$370,000 to bill sponsors and cosponsors” of such legislation.Yass also prioritises spending public funds on private education and is Pennsylvania’s biggest “school choice” donor. He told Philadelphia Magazine last year that it would be a “good thing” if public schools “shut down”, adding: “There is no possible way a government monopoly could be a better approach to schools than market competition.”Republicans in Pennsylvania pushed a constitutional amendment to ban abortion in 2021 and 2022 but without success.In Arizona, Earl “Ken” Kendrick (owner of the Arizona Diamondbacks baseball team) and his family contributed more than $200,000 to Republican legislative candidates and Pacs during the 2024 cycle. The Kendrick family supported the retention of far-right, anti-choice judges on the state’s supreme court. Legislative Republicans referred a proposal to the ballot to attempt to make these positions lifetime appointments.State legislative chambers, once regarded as sleepy backwaters, have become partisan battlegrounds in recent years as they have a huge impact on issues ranging from book banks to transgender rights to voting laws.On an otherwise disastrous election night last November, Democrats held their own at state level, emerging with more legislative majorities than they managed in 2016 or 2020. In Pennsylvania, for example, they held off a red wave to defend a one-seat majority in the state house.But that appears to be spurring on a small group of super-rich donors aiming to reshape state-level politics with a focus on issues including abortion, education and labour rights. Critics say such contributions raise questions about the role of money in politics and the influence of billionaires on the democratic process.Bernie Sanders, an independent senator currently on a “Fighting Oligarchy Tour” across the country, told last year’s Democratic national convention in Chicago: “Billionaires in both parties should not be able to buy elections, including primary elections. For the sake of our democracy we must overturn the disastrous Citizens United supreme court decision and move toward public funding of elections.” More

  • in

    Elon Musk’s quest for power has a new target: Wisconsin’s supreme court

    He is slashing US government agencies, building electric vehicles and space rockets and running one of the world’s biggest social media platforms. But Elon Musk has still found time – and money – to meddle in a relatively obscure election in a state of 6 million people.The close ally of Donald Trump is spending millions of dollars in an effort to tip the scales in favor of a Republican candidate running for a seat on the highest court in Wisconsin. Critics regard it as a statement of intent by Musk to expand his political power in America by playing an insidious role in key races across the country.“It’s one of the most significant threats to our democracy in the current moment,” said Larry Jacobs, director of the Center for the Study of Politics and Governance at the University of Minnesota. “You’ve got money and power in one person who’s been given access to the upper echelon of the federal government. He’s fused the power of the Oval Office with his almost unlimited amount of money to support Republicans, both at the state level and national level.”Musk has grabbed attention during Trump’s first month in office with his so-called “department of government efficiency”, or Doge, a team of mostly young male software engineers who have laid waste to the federal government and dismissed thousands of workers in ways that have been challenged in the courts.Musk’s startling ascent was on vivid display when he spoke to reporters alongside Trump in the Oval Office and wielded a chainsaw before a cheering crowd at the Conservative Political Action Conference. Earlier this week, he held court at a cabinet meeting, where the president dared any of his officials to express discontent about Musk’s scorched-earth approach. No one did.But away from the TV cameras, Musk is also at work in Wisconsin, which holds an election for its state supreme court on 1 April. The vote will decide whether liberals maintain a 4-3 majority with major cases dealing with abortion, union rights, election law and congressional redistricting already under consideration by the court or expected to be argued before it soon.Such campaigns are now non-partisan in name only. Republicans are lining up behind Brad Schimel while Democrats are backing Susan Crawford. It could be the most significant US election since November, an early litmus test after Trump won every swing state, including Wisconsin.Crawford has received $3m from the state Democratic party, including $1m that the party received from the liberal philanthropist George Soros and $500,000 from the Illinois governor, JB Pritzker.Musk’s America political action committee is spending $1m to back Schimel, a former state attorney general who attended Trump’s inauguration last month. Another group Musk has funded, Building America’s Future, is spending $1.6m on TV ads attacking Crawford, a Dane county circuit judge. It reportedly had to withdraw one social media ad after it featured a photo of a different woman named Susan Crawford.Crawford told a recent meeting of the Wisconsin Counties Association: “Elon Musk is trying to buy a seat on our supreme court so Brad Schimel can rubber-stamp his extreme agenda.”Schimel denies that money would affect his independence on the court. He told reporters: “I don’t have any agenda that I’m working alongside anyone. I’m grateful for our supporters, but they’re getting nothing except me following the law.”But Musk has both business and political incentives to back him. Tesla, the electric car company owned by Musk, has a lawsuit pending in Wisconsin challenging the state’s decision blocking it from opening dealerships. The case could ultimately be decided by the Wisconsin supreme court and Schimel has not committed to stepping aside.Furthermore, in the event of a disputed election in the crucial swing state in 2028, the supreme court could be decisive. Musk tweeted last month: “Very important to vote Republican for the Wisconsin Supreme Court to prevent voting fraud!” And as Doge lays siege to the administrative state, the courts have provided the strongest pushback. Tilting them to the right could neutralise that opposition and work to Musk’s advantage.Ben Wikler, chair of the Democratic party of Wisconsin, said: “He is not the first far-right billionaire to pour money into a Wisconsin supreme court election but he is spending money hand over fist at the same time the whole world is wondering whether courts will ever be a check on the Musk/ Trump/GOP attack on the rule of law.“While he’s firing veterans with disabilities in Wisconsin from the veterans administration, he’s also working to buy a supreme court majority that could eliminate any possibility of accountability to state law.”Musk exploded onto the political stage last year, spending nearly $300m supporting Republican campaigns, according to Federal Election Commission filings. While most of his efforts went toward electing Trump, a super political action committee he founded also spent millions of dollars on House of Representatives races to keep Republicans in control.Musk also dabbled in state politics in Texas, where he had moved several of his businesses. In 2024, he gave $1m to a tort reform group supporting Republicans in state legislative races and $2m to a political action committee that campaigned to elect Republican judges in the state.Wikler believes there is more to come. “There’s been a question about whether Musk would follow Trump in only caring about elections when Trump is on the ballot. The answer is now clearly no. Musk wants control over every level of government at the same time as he takes control of people’s personal tax information and treasury payments that keep childcare centres open in Wisconsin,” he said.He added: “Musk is trying to execute a uniquely and profoundly grotesque perversion of justice by buying the court system while defying the constitution in order to rip off the poor and the middle class to enrich himself.”Not even Republicans are safe from the world’s richest man, whose fortune is estimated at $426bn. Musk threatened to fund primary election challengers to members of Congress who failed to back Trump’s cabinet picks and legislative priorities.Charlie Sykes, a conservative political commentator based in Wisconsin, said: “Elon Musk’s money is the bullets in the chamber aimed at wavering Republicans: ‘You don’t support us, Elon Musk will come into your state or your district [and] he will spend more money than God has to defeat you in a primary.’”Musk’s control of the X social media platform gives him profound influence over online discourse and the flow of information. His own feed, with 219 million followers, has become like a running commentary on the Trump administration.He has even sought to flex his muscles abroad, backing Germany’s far-right AfD party, calling for Nigel Farage to quit as leader of Britain’s Reform UK party and pushing false claims that white people are persecuted in South Africa.But while he currently appears omnipotent – a Time magazine cover depicted him sitting behind the Resolute desk like a president – there are signs of growing public discontent.In a Washington Post-Ipsos opinion poll, 34% of respondents said they approved of how Musk was handling his job, compared with 49% disapproving and 14% not sure. Protests against the tech oligarch have been held across the country and congressional Republicans have faced the backlash at raucous town halls.Sykes questions how long Musk’s political honeymoon can last: “He’s signalling that, at least for now, he’s going to be Trump’s enforcer and he’s going to be the force multiplier for the right wing. But as he does so, he’s also establishing himself as an independent force. The dilemma for Trump is that Musk is useful until he’s not but he’s not easy to get rid of.“In the end, there can only be one. The dilemma right now is it’s important to keep the focus on what Elon Musk is doing but not forget that the only reason he’s been empowered to do it is because of Donald Trump.” More

  • in

    Elon Musk’s rumoured $100m donation may just fuel a fresh look at UK political funding

    Elon Musk has denied he is gearing up to chuck $100m at Nigel Farage’s Reform UK party, as it pushes to take on the Tories. But the very fact the question arose is a reminder of the pressing need for political funding reform on this side of the Atlantic.Musk is the living embodiment of economic power in the modern US: a multibillionaire, with spicy political views, who has bought his way into a role as Donald Trump’s costcutter-in-chief.Part of his motivation seems to be not just slashing spending for the sake of it but the dismantling of regulators that his companies have found irksome.He had previously joined legal action, alongside Amazon’s Jeff Bezos, aimed at having the National Labor Relations Board declared unconstitutional, for example.This is the body, created in 1935, that enforces workers’ rights. It ensured staff at Amazon’s Staten Island warehouse had the opportunity to ballot – successfully – for union recognition (an outcome the giant retailer has continued to challenge).Musk has also said he wants to “delete” the Consumer Financial Protection Agency, suggesting it is “duplicative”.Musk et al’s affront at the very idea that federal agencies have oversight of business is reminiscent of the fury faced by President Theodore Roosevelt and his allies during the so-called Progressive Era, at the turn of the 20th century, when they fought to bust vast monopolies and tame the worst excesses of capitalism.The mega-rich capitalists back then were the likes of JD Rockefeller and JP Morgan but then, as now, there was a clash of principles about the government’s right to oversee corporations. And then, as now, money was used to buy influence over the debate.If Musk and his co-director, Vivek Ramaswamy, succeed in scrapping a whole suite of regulators, it could fundamentally shift the relationship between capital and the individual (which, of course, is exactly his hope).Musk’s deregulatory zeal may yet run into trouble in Congress, and Trump may tire of his fellow egotist and end up wheeling out his catchphrase from the Apprentice to tell the Tesla boss “you’re fired”.But the immense influence Musk has bought, by spending an extraordinary $243m (£190m) on getting Trump re-elected, and using X to pump out pro-Trump propaganda, should sound alarm bells in the UK.We may lack the equivalent of Silicon Valley’s galactically rich donor class, with their screwball libertarianism. But we still have a system where wealthy individuals can effectively give unlimited sums to their favourite political parties.There are spending limits during campaigns, but these are very high: for a party standing candidates in every seat in the UK, it topped £34m at this year’s general election.Party funding rules state that you have to be a UK citizen to give more than £500 – or a UK-registered company, which “carries out business in the UK”.So even if Musk felt so minded, he could not donate as an individual, but would have to channel any donation to Farage’s crew via the UK outpost of Twitter, now known as X.skip past newsletter promotionafter newsletter promotionBut the very fact he could do so in theory highlights the gaping holes in our funding rules.Keir Starmer’s Labour seems at ease with big money. Labour declared three times as much in donations as all other parties combined during this year’s election campaign – more than £9.5m – with big donors including the trade unions, of course, but also wealthy individuals, such as Lord Sainsbury, the former chair of the supermarket chain, as well as the Autoglass founder, Gary Lubner, and the hedge fund manager Martin Taylor.Yet the row over freebies – which led to Starmer being castigated over donations of glasses and gig tickets – revealed a deep public scepticism over the role of private money in politics.Just as with the MPs’ expenses scandal, a practice that Westminster considered perfectly normal was shown to be deeply unpalatable to voters.Labour’s manifesto included a promise to “protect democracy by strengthening the rules around donations to political parties”. It is unclear what that meant, and it didn’t feature in Labour’s first king’s speech, but my colleague Eleni Courea has reported that Labour will look closely at a forthcoming report from the IPPR thinktank, which is expected to recommend a £100,000 annual cap on individual donations.Cross-party talks on political funding have often foundered on Labour’s reluctance to accept any cap on trade union donations. This is a difficult circle to square – Labour is, after all, the party of labour. At the very least, union donations should be democratically endorsed, so that they function as much as possible like a collection of individual members’ subs.On this basis, plans in the employment bill to move to an “opt out” approach for union political funds seem like a backwards step (though the unions would point out that they do hold regular votes on how their political funds are used).Transparency International, which campaigns to drive big money out of politics, recommends a much lower £10,000 cap on donations, and has a slate of other suggestions – including reducing campaign spending limits, which were raised dramatically by the Tories. Labour would be wise to look closely at these, too.Political funding reform should be a worthy aim in itself, without the looming threat of the populist right. But If Elon Musk’s enthusiasm for Nigel Farage helps motivate the UK’s mainstream parties to crack on with cleaning up politics, both men will have made an unexpectedly positive contribution to public life. More

  • in

    The Republican and Democratic parties are killing electoral reform across the US | David Daley

    Ohio’s extreme gerrymanders have enabled more than a decade of corruption, lawless behavior and unpopular legislation passed by lawmakers safely insulated from the ballot box.Voters tried to fix it by bringing a citizen-led independent redistricting commission to the ballot. Due to Republican subterfuge, they ended up voting against themselves. With breathtakingly Orwellian tactics, Ohio Republicans twisted the ballot language and presented it to voters as an initiative that would require gerrymandering rather than end it.When Ohioians arrived at Issue One on their ballots, they were told that a yes vote would “repeal constitutional protections against gerrymandering”. Voters were understandably confused. So while redistricting reform won huge wins in the Buckeye state in 2015 and 2018, with more than 70% of the vote, this year 54% of Ohio voters rejected it.Most analyses of the 2024 elections have focused on the swing toward Republicans at the top of the ballot. But another trend could be more consequential: when citizens stood up across red, blue and purple states this year with reforms designed to strengthen democracy and make all elections more meaningful and competitive, the parties undermined them with brutal, deceptive tactics and submerged them in a swamp of dark money.It worked nearly every time. Unlike 2018, when pro-democracy reforms won big nationwide, this time, reformers were routed.This is frightening news. The vast majority of states – even the purple ones – are either safely Republican or Democratic, or have been gerrymandered that way. Ballot initiatives and citizen-driven reforms uniting voters across party lines have been a rare bright spot and showed a possible path to defeat extremism and entrenched one-party control. But not this year.This year brought defeats – and Ohio-style trickery – across the map, and on a wide variety of pro-voter reforms, including redistricting reform, ranked-choice voting and open primaries. One state, Missouri, even jumped ahead of reformers and banned them in advance with a new prohibition on ranked-choice voting and open primaries – cleverly rolled into an amendment headlined by a ban on “noncitizen voting”, which, of course, isn’t actually happening there or anywhere.Voters in Colorado, Nevada and Idaho advanced initiatives that would have created open primaries and advanced either four or five candidates to a ranked-choice general election. Reformers hoped to give growing numbers of independent voters a say in which candidates are on the ballot in November, and ensure that candidates need a majority to win – instead of a fraction of a fraction of voters in low-turnout, closed primaries.The parties and their dark-money allies pushed back, hard. In Idaho, rightwingers determined to maintain their grip on power ran ads filled with both lies and red meat to outrage the base. “They have open borders. They want open bathrooms. They need open primaries,” claimed one of the most ridiculous and misleading, but effective, mailers.Leonard Leo’s billion-dollar dark-money network – which, after capturing the US supreme court and multiple levels of the judiciary, has now cast its eye on locking in far-right minority rule in the states – dispatched its operatives to mislead voters with one dishonest claim after another about ranked-choice voting. In one especially rich claim, opponents funded by billionaires and the wealthiest rightwing foundations have created front groups to argue that ranked-choice voting would make it easier for the wealthy to buy elections.The true agenda is clear: to protect and defend extreme lawmakers who perform best in base-driven primaries with multiple candidates and a small, divided electorate. That’s why a constellation of groups with ever-shifting names – but with the same far-right foundations and even election deniers behind them – have engaged in this multimillion-dollar scare operation.In Nevada, both Democrats and Republicans (and their aligned groups) spent millions in a successful effort to defeat open primaries and ranked choice. The state’s political elites – the still powerful machine built by the late senator Harry Reid and the Maga state Republican apparatus – built an odd coalition to brand a heretofore popular political reform, incorrectly, as “unproven” and “complicated”.Some Colorado Democrats, and even advocates of ranked-choice voting elsewhere such as Elizabeth Warren, meanwhile, sadly swallowed Leo’s talking points whole to ensure the party retained power in this growing Democratic bastion where a record half of registered voters are unaffiliated.Perhaps what’s happening here is no surprise. Citizens want to reclaim state legislatures that have been distorted by gerrymandering and captured by unrepresentative winners of party primaries. The powerful want to close off one of the last avenues for reform.After all, Ohio’s unbreakable gerrymander, now in its 14th year, is so extreme that only four of 99 state house races were within five points this year, and just one of 17 state senate races. Uncompetitive elections push all the action to low-turnout primaries, where the tiniest percentage of the base can select unrepresentative candidates to coast into the general – and then advance unpopular legislation such a six-week abortion ban once in office.Ohio’s supreme court rejected the state house and congressional maps as unconstitutional not once, not twice, but seven times. A cowed governor, Mike DeWine, conceded that the maps could have been “more clearly constitutional”, but went along with the party line anyway. Lawmakers lawlessly disobeyed, ran out the clock, then found Trump-appointed federal judges with longstanding ties to Leo and the Federalist Society to impose the gerrymandered maps.“It is hard to recognize Ohio,” the former governor Bob Taft, a Republican, told me. “The consequences of extreme gerrymandering have been obvious here.”Idaho’s far right, meanwhile, has captured much of a once-traditional Republican machinery and moved to relentlessly consolidate power. In 2018, voters found an end run around the legislature and used the initiative process to expand Medicaid. More than 60% of voters supported the measure, after lawmakers refused to accept Affordable Care Act dollars during multiple sessions.Lawmakers, recognizing that the initiative represented a last opportunity for the public to check a hijacked legislature, endeavored time and again to make one of the nation’s most difficult initiative processes even more onerous and to oppose efforts to open Idaho’s system to voices beyond their own. Then, when courts and determined citizens pushed forward anyway, the legislature drowned them out with the support of organizations funded not only by Leonard Leo but also the Koch brothers, the Bradley Foundation and DonorsTrust (“the dark-money ATM of the right”).There was one significant bright spot last Tuesday: Washington DC, which overwhelmingly adopted ranked-choice voting despite some misleading efforts by officials from the district’s dominant Democratic party.But the simple truth is that the structural reform we so desperately need has become harder, as those from both the left and the right who prefer to govern without majorities, and without persuading everyone to their side, recognize it as a threat. They won’t stop here, and they have said so.Leo and his henchmen, armed with dark money, having grabbed control of election machinery, will stop at nothing to expand their ill-won and ill-held power. These fights will arrive in more state capitols and in Congress. They are trying to steal control while hiding behind phoney names and untold billions.The good news is that their scam is easy to see through. The test for our democracy – and for reformers – will be how to rise to this new challenge in a polarized, partisan moment. No task will be harder. None is more important.

    David Daley is the author of the new book Antidemocratic: Inside the Right’s 50-Year Plot to Control American Elections as well as Ratf**ked: Why Your Vote Doesn’t Count More

  • in

    ‘Partisan politics’: how efforts to overturn the Johnson amendment could upend campaign finance

    Donald Trump has long promised his evangelical base he will undo the Johnson amendment, allowing churches and other nonprofits to weigh in on and donate to political campaigns – and his path to doing so is now clearer than ever.A provision of the tax code since 1954, the Johnson amendment prohibits certain tax-exempt nonprofit organizations from making political endorsements in – or offering monetary support to – political campaigns. If the president-elect succeeds in overturning it through any of a few available methods, experts say it could have the profound effect of opening up a flow of dark money into politics.“I think it’ll have as big, or a bigger impact than Citizens United,” said Andrew Seidel, a constitutional attorney and expert on Christian nationalism. “I don’t think people are fully prepared for a country in which churches can accept tax deductible donations in the billions of dollars and then turn around and use that money for partisan politics.”With a likely narrow majority in the US House of Representatives and the Senate, Trump has multiple avenues to challenge the provision. He could try to push Congress to take legislative action. He could attempt to unwind parts of the provision through executive action, an approach that would likely be subject to litigation. Or, he could involve the Department of Justice – which he has vowed to mobilize politically – in a key, ongoing Texas lawsuit threatening the law.During Trump’s first term, he failed to deliver on his promise to destroy the amendment. Congress failed to roll back the regulatory measure and in an executive order gesturing at the issue, Trump only advised the treasury to take a lenient posture on the political speech of clergy – “to the extent permitted by law”.Now, with a lawsuit filed in Texas making its way slowly through the courts, Trump has yet another avenue to chip away at legal limits on churches’ political activity. The complaint, filed against the IRS by National Religious Broadcasters, two Texas churches and the group Intercessors for America – whose mission includes a “call for godly government” – seeks to find the Johnson amendment unconstitutional.It claims that churches are subject to “unique and discriminatory status” under the tax code and that the IRS “operates in a manner that disfavors conservative organizations and conservative, religious organizations” in enforcing the law.Named after its author Lyndon B Johnson, the Johnson amendment is inserted into section 501(c)(3) of the tax code to prevent certain nonprofits from “participating in, or intervening in, any political campaign on behalf of (or in opposition to) any candidate for elective public office”. The law also notes that “contributions to political campaign funds” would “clearly violate” the provision.Some churches already flaunt the law’s requirement to refrain from endorsing political candidates – a trend that the Texas Tribune has documented. Repealing the Johnson amendment would allow churches to go further, including potentially donating to partisan causes. Because churches, unlike other nonprofit organizations, are not required to file 990 forms disclosing key financial information to the IRS, such an arrangement would allow for little public oversight.Representing National Religious Broadcasters on the complaint is Michael Farris, the former CEO of the powerful rightwing legal outfit Alliance Defending Freedom and a driving force behind the “parental rights” movement, which seeks to limit schools’ ability to teach about race, gender and sexuality in the classroom. Like the conservative “parental rights” movement, the push to do away with the Johnson amendment could chip away legal barriers separating church and state.In the short run, overhauling the provision could, Seidel said, allow churches to function effectively as Super Pacs, accepting tax-deductible donations from politically-motivated donors and channeling them into political causes. Such a scenario could, Seidel cautions, force churches to subject themselves to the same financial disclosures that Super Pacs face.“The church could be the subject of litigation, but then again, who’s going to be running the IRS? Who’s going to be enforcing that?” said Seidel. “It’ll be the Trump administration.” More

  • in

    US election answers the question: how do you spend a billion dollars?

    It was one of the most striking images of the final full week of the presidential election campaign: a giant projection of Kamala Harris’s face on the 516ft-wide, 366ft-tall Las Vegas Sphere.At a reported $450,000 per day for what is believed to be the first political ad to appear on the futuristic new attraction, it was also one of the most expensive. But even at those rates, it barely made a dent in the staggering election war chest of almost $1bn that Harris has built since replacing Joe Biden at the top of the Democratic ticket this summer.What the Vegas investment did answer, in part at least, was the question of how a campaign spends a billion dollars – an amount larger than the gross domestic product of at least 14 countries, according to the World Bank – in a single election season.Cash-hungry stunts such as this one in battleground Nevada are often targeted at undecided voters in specific swing states and regions; and Republicans and Democrats alike have shown a penchant for splashing out on costly endeavors to try to reach those who are still persuadable, and therefore the most high-value. Bang for the buck, in other words.As another example, the campaigns of Harris and Donald Trump, the Republican nominee, booked pricey prime-time spots during games involving Pennsylvania’s two professional NFL teams – the Philadelphia Eagles and Pittsburgh Steelers – on Sunday and Monday nights.Pennsylvania’s 19 electoral college votes could tip the election one way or the other, and with polling showing the state on a knife edge, Democrats in particular have made younger, male voters – a demographic they see as politically less engaged – a priority. Earlier this month, the New York Times reported, the Democratic National Committee paid “a six-figure sum” to fly pro-Harris banners over four NFL games involving teams from six of the seven key swing states, Pennsylvania among them.“It is an extraordinary amount of money that the candidates are raising, and there’s no shortage of places to spend it,” said Steve Caplan, a professor who teaches a course on political advertising at the University of Southern California’s Annenberg School for Communication and Journalism.“Back in the stone age before the explosion of digital media, there were four TV networks in the US, and even after cable there was only so much what we would call inventory, or space, to get your message out.“Now, because of an explosion of channels and media outlets, there’s countless ways to spend that money, to slice and dice it by audience and by demographic, whether it’s on digital advertising, YouTube, Facebook and other social media. Interestingly, Snapchat has become a really big channel for Kamala Harris. It’s very cost-efficient and can reach younger voters.”Caplan said campaigns had invested in honing their digital content creation, from videos to podcasts, into a powerful and effective messaging tool.“There’s an entire infrastructure of producers, writers, editors and ad makers who just crank these things out for every conceivable audience, almost 24 hours a day for weeks and weeks,” he said.“We’ve also seen massive changes in the last few years where more consumers are cutting the cord: you get a smart TV and can stream through your provider. Those sort of platforms were really in their early stages just four years ago, and now they’ve become massive and very important. Hundreds and hundreds of millions of dollars are now being spent on these platforms in swing states. It was virtually zero in 2020.”Other expenses that campaigns must cover include staff costs, printed materials and advertising, staging rallies and transportation. But broadcast advertising, especially television, remains king.Analytics company AdImpact says Democrats have spent $1.1bn on aired ads and future reservations alone since Harris became the candidate in July, $400m more than Republicans. Jointly, the two presidential campaigns have spent an eye-watering $2.1bn since March.For the entire election cycle, including Senate, House and partisan down-ballot races, plus ballot initiatives in many states, political advertising is expected to reach a record $10.7bn, a 19% increase from 2020, AdImpact says.Democrats have significantly out-raised and outspent Republicans in this cycle, disclosures to the Federal Election Commission (FEC) show, in both campaign funding and money raised by and for political action committees (Pac), which are allied with the presidential candidates but, by law, are set up and run independently of them.Up to 16 October, the most recent date for which returns were available, Democrats hauled in $1.05bn and spent $883m, leaving almost $120m in hand. Republicans, by contrast, raised $565m and spent all but $52.6m of it.When Pac money is included, however, the figures swell exponentially. While individual contributors are limited to $3,300 donations directly to the presidential candidates, there are no such limits for Pacs, which raised $13.5bn between January 2023 and the end of last month, according to the FEC.The rules, framed by the 2010 Citizens United v FEC supreme court ruling, allow corporations, special interest groups and wealthy individuals – such as the billionaire Elon Musk through his controversial Trump-aligned America Pac – to make eye-popping and almost unrestricted contributions, and to buy oversized influence in elections and their aftermath.“Citizens United, and subsequent other cases, opened the door for corporate contributions to related entities to campaigns, and allowed for what are commonly referred to as dark-money groups to spend money on politics without disclosing who that money came from,” said attorney Noah Bookbinder, president and chief executive of Citizens for Responsibility and Ethics in Washington (Crew).“Wealthy people have always been a political force, but a small group of billionaires have become just a huge part of the machine, fueling political campaigns now, both in terms of giving to dark-money organizations and giving to Super Pacs. In the case of Elon Musk, his Super Pac is essentially operating as an unchecked piece of the Trump campaign apparatus.“It’s troubling because we don’t want this country to slide into being the kind of oligarchy you see in a place like Russia where a small number of very wealthy individuals have outsize influence over the people in charge.”Musk’s self-funded Pac reported $130m in receipts, the latest FEC disclosure showed. Democratic-aligned Pacs ActBlue, the Harris Victory Fund and the DNC, filled three of the top four places with receipts of more than $5bn. The leading Republican Pac, WinRed, reported $1.4bn.A new report from Americans for Tax Fairness (ATF), meanwhile, shows Musk in third place among individual donors, behind banking and oil magnate Tim Mellon ($172m) and the Las Vegas-based Adelson family of hoteliers ($137m). All three donated to Republicans.In all, the ATF said, 150 billionaire families have so far contributed $1.9bn among them to Pacs supporting presidential and congressional candidates in the 2024 cycle, a 60% rise from the 2020 total given by more than 600 individual billionaires.“Billionaire campaign spending on this scale drowns out the voices and concerns of ordinary Americans,” said David Kass, ATF’s executive director.Bradley Smith, professor at Capital University law school and FEC chair during the administration of George W Bush, said it was wrong to blame Citizens United for the cash swishing around in Harris’s, or Trump’s, coffers.“The vast majority of the money is coming from individuals subject to campaign finance limits. All the money Kamala Harris has raised directly in her campaign comes from individuals in amounts of $3,300 or less,” he said.“The law has played a part but more than that, it’s maybe a little bit of a cultural zeitgeist. People seem to really feel there’s a lot at stake in this election and one of the few ways people can participate in a campaign beyond voting is by giving money.“Most people don’t have time to go knock on doors, and a lot of it has been supercharged by the internet, which makes it really easy and low-cost to get small donors to contribute: ‘Click on this button, send us $20.’ Some of these people do that 30, 40, 50 times, and all of a sudden you’re talking real money.” More

  • in

    Elon Musk skips hearing as $1m election giveaway case moves to federal court

    Elon Musk failed to show up to a required hearing in a Philadelphia case challenging his $1m-a-day sweepstakes. His absence would have risked contempt of court had the case continued in Pennsylvania court, but it was moved to federal court in response to a motion filed by Musk’s attorneys, who did attend the hearing. No hearings were immediately scheduled in the federal case.Judge Angelo Foglietta agreed that Musk, as a named defendant in the lawsuit filed by the district attorney, Larry Krasner, should have attended the hearing in person, but he declined to immediately sanction the tech mogul. Musk’s attorney said his client could not “materialize” in the courtroom with notice only given the night before.Krasner’s team challenged the notion that the founder of SpaceX could not make it to Philadelphia, prompting a quick retort from the judge.“Counsel, he’s not going to get in a rocket ship and land on the building,” Foglietta replied.On Wednesday, the judge had ordered all parties to attend the Thursday morning hearing, including Musk. Musk’s attorneys had filed a motion to shift the suit from Pennsylvania state court to federal court in a filing late that day, which was granted shortly after Musk did not appear.Lawyers for the Philadelphia district attorney’s office requested the case be returned to state court, calling the move to the higher court a “cowardly” delay tactic meant to “run the clock until election day”. The federal judge assigned to the case ordered Musk’s attorneys to respond by Friday morning. Musk’s counsel had argued that state court was not the proper venue and that the Philadelphia district attorney was engaging in thinly veiled electioneering.“Rather, although disguised as state law claims, the complaint’s focus is to prevent defendants’ purported ‘interference’ with the forthcoming federal presidential election by any means,” the Tesla CEO’s attorneys wrote.In the original suit, Krasner argued that Musk’s petition and associated contest were “indisputably violating” specific Pennsylvania laws against illegal lotteries. Musk’s attorneys said he was engaging in legally protected political speech and spending.John Summers, an attorney for the DA’s office, told the judge on Thursday that Musk’s Pac had “brazenly” continued the sweepstakes despite the lawsuit, awarding about 13 checks of $1m since the contest began, including one the day of the hearing.“They’re doing things in the dark. We don’t know the rules being followed. We don’t know how they’re supposedly picking people at random,” Summers said. “It’s an outrage.”The cash giveaways come from Musk’s political organization, which aims to boost Donald Trump’s presidential campaign in the vital swing state, which is seen as a key to victory by both Trump and his opponent, Kamala Harris.Krasner, a Democrat, filed suit on Monday to stop the America Pac sweepstakes, which is set to run through election day and is open to registered voters in swing states who sign a petition supporting the constitution. Musk has been tweeting photographs of the winners holding novelty checks.Krasner has said he could still consider criminal charges, saying he is tasked with protecting the public from both illegal lotteries and “interference with the integrity of elections”.Election law experts have raised questions about whether Musk’s drawing violates a federal law barring someone from paying others to vote. Musk has cast the money as both a prize as well as earnings for work as a spokesperson for the group. More

  • in

    US warns Musk’s Super Pac $1m-a-day giveaways may be illegal, reports say

    The US justice department has sent a letter to Elon Musk’s Super Pac warning that the billionaire Tesla CEO’s $1m-a-day giveaways may violate federal law, according to multiple reports.A letter from the department’s public integrity section, which investigates potential election-related law violations, went to the Pac, reports in CNN and the New York Times said. The justice department and Musk’s America Pac did not immediately respond to a request for comment.South African-born Musk, who has thrown his support behind Donald Trump in advance of the 5 November election, announced on Saturday while speaking before a crowd in Pennsylvania that he was giving away $1m each day until election day to someone who signs his online petition supporting the US constitution.skip past newsletter promotionafter newsletter promotionHe handed $1m checks to two separate people over the weekend: one to a man in Harrisburg on Saturday and another to a women in Pittsburgh on Sunday. Another voter in North Carolina has won $1m. Between in-person campaign events in support of the Republican presidential candidate, Musk has tweeted his congratulations to the winners and urged other registered voters in swing states to sign his petition and enter the lottery.Election law experts had called the sweepstakes potentially illegal. The Pennsylvania governor, Josh Shapiro, had called on law enforcement to investigate.Musk, ranked by Forbes as the world’s richest person, so far has supplied at least $75m to America Pac, according to federal disclosures, making the group a crucial part of Trump’s bid to regain the White House. More