Trump faces huge legal costs amid multiple civil and criminal cases The money Trump’s campaign is spending at his businesses could help the former president as he faces a big cash crunch.
Trump has been hit with a pair of large financial judgements after losing two civil lawsuits.
The New York attorney general is challenging whether the deal Trump made to post the larger bond payment is financially sound.
The payments Trump’s campaign has made to his businesses are small compared to his large court-ordered financial judgements, but have been growing in recent months.
The Trump campaign and affiliated political committees paid businesses owned by Trump at least $4.9 million since the start of 2023, according to an analysis by USA TODAY.
The primary thing Trump’s businesses need to do is charge his campaign and PACs the same amount they would charge any other paying customer for the services.
That fund accounts for the bulk of his legal spending, but his affiliated committees have spent millions more.
Spending money on legal issues is not unusual for a campaign, but campaign finance experts say Trump has pushed the boundaries of what is allowable.
The primary fund-raising effort for Donald Trump’s 2024 White House campaign has significantly increased spending at the former president’s properties in recent months, putting money into his businesses at a critical juncture when he is in grave legal danger and in need of money.
The Federal Election Commission received a report this week that shows that $411,287 was written by Trump’s joint fundraising committee to his Palm Beach, Florida, Mar-a-Lago club in February and March, and $62,337 was written to Trump National Doral Miami in the same month.
Donor funds may be used at a candidate’s place of business under federal law and FEC regulations, experts say, provided the campaign pays fair market value. For years, Trump has been funneling millions of campaign funds into his vast conglomerate to cover costs like renting out Trump Tower, using his private jet for political events, and hosting parties at his hotels and private clubs.
Even though it’s legal, some experts on campaign finance feel it raises ethical questions when a candidate makes money off of their candidacies.
Day 3 of Trump’s trial for hush money: Follow along live as the jury selection process for his criminal trial gets underway.
Get ready for the polls by using our Voter Guide to compare the positions of the presidential candidates on important issues.
Shanna Ports, senior legal counsel at the Campaign Legal Center, a nonprofit organization that advocates for government accountability, stated that “when voters see something like this happening it contributes to their distrust of the political system and their elected officials’ motives.”.
As a result of numerous civil and criminal cases, Trump will incur enormous legal expenses.
The money Trump’s campaign is spending at his companies may come in handy for the outgoing president, who is severely short on cash.
After losing two civil lawsuits, Trump was hit with two sizable financial judgments.
In a lawsuit for defamation filed by author E, he posted a $91 pointsix million bond. In a fraud case involving the falsification of business records, Jean Carroll was also given a $175 million bond. Whether the agreement Trump made to post the larger bond payment is financially sound is being contested by the attorney general of New York.
In contrast to his substantial court-ordered financial judgments, the payments Trump’s campaign has made to his companies are minor, but they have been increasing recently.
According to a USA TODAY analysis, since the beginning of 2023, the Trump campaign and related political committees have paid at least $4.9 million to companies owned by the billionaire. $4.1 million, or the majority of that amount, was given to TAG Air, Inc. with regard to flying.
In his most recent financial disclosure, which is mandatory for presidential candidates, Trump lists TAG Air, Inc. as one of his assets. The company is valued between $5 million and $25 million. It pilots Trump Force One, his personal jet.
The minimum amount of money that Trump’s campaign committees and a super PAC under his patronage have spent at his properties since the start of the year is $809,000.
Spending on campaigns at Doral in Miami and Mar-a-Lago in Palm Beach.
At Trump’s properties, Mar-a-Lago has accounted for the majority of campaign spending ($663,000) since the beginning of 2023; most of this spending took place in February. It’s unclear what activities the funds were used for.
A spokesman for Trump chose to criticize President Joe Biden in a statement rather than address specific queries regarding the campaign expenditures at his properties.
Considerable campaign finance has also been spent at Trump properties by other GOP contenders.
Ohio Republican U.S. s. According to documents, the campaign of Senate candidate Bernie Moreno spent $109,000 on “event catering” at Mar-a-Lago in April, December, and January of 2023. In December, Moreno received Trump’s support. After winning the March primary, Moreno will take on Democratic Sen. Nov.: Sherrod Brown.
Nevada University. S. In November and December, the campaign of Senate candidate Jim Marchant spent approximately $67,000 at Mar-a-Lago on “event venue rental and catering.”. In his failed attempt to become Nevada’s secretary of state in 2022, Marchant received Trump’s support. At this point, Marchant is aiming to depose Democratic Sen. Jacky Rosen.
In January, a political action committee (PAC) named Giuliani Defense expended $2,400 on food and fundraising costs at Trump’s Bedminster, New Jersey golf club. Documents filed with the FEC show that the PAC has paid $540,000 in legal fees. In an effort to assist Rudy Giuliani with his legal expenses, which are partly related to the criminal accusations the former mayor of New York faces in Fulton County, Georgia, for attempting to assist Trump in tampering with the 2020 election, Trump threw a fundraiser for the former mayor at Bedminster in September.
On March 5, Trump invited many of his supporters to his Mar-a-Lago estate so they could watch the results of the Super Tuesday primary elections from 16 states. Additionally, in October, he hosted a fundraiser at Mar-a-Lago that drew hundreds of guests, including U. s. Representatives Byron Donalds and Marjorie Taylor Green; Texas Attorney General Ken Paxton; and actress Roseanne Barr.
Carlos Trujillo, a former ambassador, hosted another fundraiser at Trump National Doral in March. The proceeds went to Make America Great Again, Inc. super PAC.
The majority of the expenditures at Trump properties were covered by the Trump Save America Joint Fundraising Committee, which raises money for both Trump’s campaign and his Save America leadership PAC. Additional costs were covered by Trump’s primary campaign committee, MAGA Inc. Super PAC and the American people.
Trump’s business conflicts have raised concerns since the 2016 election.
Throughout his three campaigns and four years in the White House, questions concerning how Trump’s businesses have profited from his political career have followed him.
Driven by demands to steer clear of possible conflicts of interest between his presidency and extensive business ventures, Trump announced following his election victory in 2016 that he would not be making any “new deals.”. The family business was run by a trust that some criticized for lacking stringent enough rules to guard against ethical dilemmas, and the incoming president also gave his two adult sons control over it.
Lawsuits alleging that during his presidency, Trump violated the Constitution’s emoluments clauses were unsuccessful. Opponents claimed that individuals hoping to have an impact on Trump’s administration directed funds into his companies, which included a hotel in Washington, D.C., close to the White House. that was later sold and given the Waldorf Astoria name.
In 2016, the America Democracy Legal Fund complained to the FEC, claiming that “Mr. To further his commercial and personal interests, Trump is utilizing money from his presidential campaign. Although the complaint was rejected, some experts on campaign finance still have reservations.
Ports asserted, “People ought to run for office because they want to help the public, not so they can get rich.”. Therefore, it raises those concerns that campaigns are permitted to pay the candidate’s business. Even though it’s lawful, it casts the election system in a bad light. “.”.
Though it may not be against the law, Trump’s use of campaign funds at his businesses is “a little bit dicey,” according to Columbia Law School professor of legislation Richard Briffault. “.”.
“Nothing like it has ever been seen.”.
Only former New York City Mayor Michael Bloomberg, a Democrat who ran for president, may be a comparable political candidate, according to Briffault, though even so, they are not exactly the same. Nobody has ever seen anything like it when it comes to Trump, he claimed.
Charge Trump’s campaign and PACs the same price for the services as they would any other paying client is what his businesses primarily need to do. A more moral dilemma arises from the possibility that the campaign and PACs could negotiate a better deal elsewhere.
Briffault inquired, “How much are they charging? And to what extent are they putting up people who might be staying somewhere else that might be cheaper?”. “You could think there might be less expensive locations for these events, but that’s precisely why they’re held there. “.
With four criminal cases against the president, Trump’s leadership PAC has also been spending enormous sums of money on legal representation. In a case involving alleged payments to an adult film star during the 2016 presidential campaign to keep her quiet about an alleged sexual affair, he is currently on trial in New York City.
More than $72 million has been spent on legal bills to numerous firms that represent him in both criminal and civil cases by the leadership PAC Save America since the election of 2020. The majority of his legal expenses are covered by that fund, but his affiliated committees have spent millions more.
Campaign finance experts say Trump has gone beyond what is permitted, even though spending money on legal matters is not unusual for a campaign.
