Get 40% Off
These stocks are up over 10% post earnings. Did you spot the buying opportunity? Our AI did.Read how

Explainer-Can Trump use political donations to pay for legal defense?

Published 08/01/2023, 05:28 AM
Updated 08/01/2023, 06:51 PM
© Reuters. FILE PHOTO: Former U.S. President and Republican presidential candidate Donald Trump gestures as he speaks during the Turning Point Action Conference in West Palm Beach, Florida, U.S. July 15, 2023. REUTERS/Marco Bello/File Photo

By Andrew Goudsward

(Reuters) - Former U.S. President Donald Trump's main fundraising group, known as a leadership PAC, on Monday reported spending more than $21 million on legal fees in the first half of 2023 amid investigations and lawsuits against Trump, his advisers and his associates.

WHAT IS A LEADERSHIP PAC?

Leadership PACs, such as Trump's Save America committee, raise money from donors to support political campaigns in the United States.

Leadership PACs emerged in the 1970s as a way for elected officials and candidates to raise money for other political candidates, usually of the same political party, without using their own campaign funds.

Members of U.S. Congress have often used the PACs to help colleagues in closely fought elections and attract support for their own bids to secure leadership positions in Congress, according to campaign finance experts.

The committees are set up and controlled by lawmakers or other political leaders, but are not connected to the candidate’s campaign.

WHAT CAN A LEADERSHIP PAC SPEND MONEY ON?

Leadership PAC funding cannot be used to support the candidate’s campaign, although it has been used to cover administrative expenses such as travel, political consulting and polling.

Unlike super PACs, which can raise unlimited sums from companies, unions and individuals, individual donors may contribute no more than $5,000 a year to leadership PACs.

U.S. politicians have traditionally had wide latitude to spend money raised through leadership PACs. Although U.S. law prohibits candidates from using campaign money on personal expenses, the U.S. Federal Election Commission, which enforces campaign finance law, has not clarified whether the ban applies to leadership PACs.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

WHAT IS THE SAVE AMERICA PAC?

Trump, who is the leading candidate for the Republican nomination in 2024, established the Save America PAC in the days after the 2020 presidential election. The committee has often solicited donations by making false claims of widespread voter fraud in the election, which Trump lost to Democrat Joe Biden.

The committee made about $760,000 in donations to other Republican candidates ahead of the 2022 midterm elections, according to OpenSecrets, an organization that tracks political spending in the United States.

But the group has spent far more covering legal bills for Trump and other associates. Save America had previously reported spending more than $16 million on legal expenses through 2022.

Trump has faced two criminal indictments and a host of other investigations since leaving office. The probes have drawn in his political advisers and employees of his real estate business.

Trump has pleaded not guilty to all charges in both cases and has accused prosecutors of political bias against him.

CAN LEADERSHIP PACS BE USED TO PAY LEGAL FEES?

The answer is tricky, according to legal experts. Generally, politicians cannot spend campaign money on legal expenses unless they are tied to a campaign, but many of the investigations involving Trump relate to his conduct as president and as a political candidate.

However, leadership PACs such as Save America also are not allowed to directly support their own candidate's campaign. Richard Briffault, a professor at Columbia Law School and an expert on campaign finance issues who has supported Democratic candidates, said that because Trump is fighting criminal charges during a presidential campaign, it is possible that covering legal fees could be considered a benefit to his campaign.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Campaign finance experts said the question was unsettled, though Trump's team would most likely argue his criminal defense is separate from his campaign.

A Trump spokesman said the legal payments were made in "accordance with the law and upon the advice of counsel."

Latest comments

Who could stop him???
I am sure the MAGA nutjobs who donated to the fund will be happy to know the fund is paying $100k + to Melania's hair stylist.....
Can't touch a single cent of Trump's billions for legal defense.......its against Trump's morality......
Answer: Yes, he can. You might want to ask the same question about Biden, who is soon to be impeached and have criminal charges pressed against him.
using political donations to pay his leal bills takings advantage of his supporters . what else would you expect from grifter Trump.
Prove how he’s a grifter. No opinions, use only verifiable facts. I have one that proves you don’t understand critical thinking. FBI allowed clinton, obama to spy on trump and create fake Russia hoax -which is treason and election fraud
Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.