Americans allocate staggering sums of money to finance their elections. According to the Federal Election Commission (FEC), the 2016 presidential election witnessed candidates collectively spending a remarkable $1.6 billion. This figure soared to an astonishing $4.1 billion in the 2020 cycle and is anticipated to rise even higher in the ongoing election campaign.
Funding for presidential campaigns is derived from a variety of sources, including individual contributions, political parties, and political action committees (PACs). PACs, which autonomously accumulate donations from supporters, play a crucial role in supporting or opposing candidates, often by funding advertisements aligning with their candidates’ policies.
The extensive duration and expensive advertising make political campaigns in the United States financially demanding. The FEC continually updates financial statistics for the 2024 presidential election campaign. The campaign has garnered over $397 million in total and spent nearly $294 million since January 2021. Republicans have raised $225 million, while Democrats have amassed $103 million.
In terms of expenditures, Republicans have spent $191 million compared to Democrats’ $48 million in the 2024 election campaign. This financial contrast is attributed to the lack of significant Democratic contenders challenging Joe Biden, while the Republicans initially featured nine certified candidates by the Republican National Committee.
Recent reports from CBS News indicate that Joe Biden’s campaign has surpassed the fundraising efforts of former President Donald Trump in January, based on federal filings.
Approximately 18% of the population contributed to candidates or parties in the 2020 presidential election, as per the American National Election Study. Individual contributions often stem from a strong affiliation with a particular party or candidate.
Corporate donations to PACs supporting candidates frequently involve a strategy of “hedging,” contributing to both sides to maintain favorable relations regardless of the election outcome. For instance, ExxonMobil allocated 58% of its political donations to Republicans and 42% to Democrats in 2020.
Donald Trump faces challenges in fundraising, having raised less money than President Biden by mid-February. Biden’s campaign has garnered around $92 million compared to Trump’s just under $85.3 million, according to FEC data.
In the 2020 election, Trump received substantial support in Republican-leaning states, typically economically disadvantaged compared to Democratic-leaning states. This economic divide may lead to Trump receiving fewer individual donations compared to Biden.
Furthermore, the distribution of “dark money” donations, anonymous contributions from wealthy individuals through super PACs, heavily favored Democrats in 2020. Biden received $174 million in dark money, while Trump received only $25 million. This trend might persist if Trump secures the Republican nomination.
Notably, Nikki Haley’s challenge to Trump for the Republican nomination has attracted significant donations from affluent supporters, despite being considered a long shot.
Trump faces financial challenges with $83 million in fines related to a guilty verdict in a sexual assault case and a separate case involving his business empire, resulting in a $355 million fine. Using campaign funds to settle these fines would be illegal, and the FEC is closely monitoring campaign finances.
In conclusion, Trump is likely to be significantly outspent by Biden’s campaign, but the impact on the election outcome remains uncertain. Research suggests that campaign spending has a notable effect on voter mobilization but may not necessarily alter support between candidates. Therefore, the financial advantage the Democrats hold in the 2024 campaign may influence voter turnout rather than swaying support between Biden and Trump.