Eleanor Finch
Political campaigns are expensive endeavours, with money flowing in and out of various avenues such as political action committees (PACs), super PACs, and dark money groups. In the United States, organisations like OpenSecrets and the Federal Election Commission (FEC) track the finances of political campaigns, providing insights into the hundreds of millions, and sometimes billions, of dollars raised and spent. The sources of this funding range from individuals to corporations, trade associations, labour unions, and nonprofits, all aiming to influence elections and shape public policy. While there are laws regulating campaign finances, the role of money in politics remains a subject of debate, with concerns over the influence of large donors and the potential impact on electoral outcomes.
| Characteristics | Values |
|---|---|
| Amount spent by presidential candidates in the first 21 months of the 2023-2024 election cycle | $1.3 billion |
| Amount raised by presidential candidates in the first 21 months of the 2023-2024 election cycle | $1.6 billion |
| Amount spent by congressional candidates in the first 21 months of the 2023-2024 election cycle | $2.8 billion |
| Amount raised by congressional candidates in the first 21 months of the 2023-2024 election cycle | $3.3 billion |
| Amount spent by political parties in the first 21 months of the 2023-2024 election cycle | $1.8 billion |
| Amount raised by political parties in the first 21 months of the 2023-2024 election cycle | $2.1 billion |
| Amount spent by Political Action Committees (PACs) in the first 21 months of the 2023-2024 election cycle | $10.9 billion |
| Amount raised by Political Action Committees (PACs) in the first 21 months of the 2023-2024 election cycle | $12.3 billion |
| Total cost of the 2024 federal election cycle | $15.9 billion |
| Total cost of the 2021 and 2022 election cycle | $16.7 billion |
| Amount spent by outside groups, largely super PACs, in the 2024 federal elections | $2.6 billion |
| Amount spent by "dark money" groups | Millions of dollars |
| Amount spent by Donald Trump's opponents | Less than Trump |
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What You'll Learn
Presidential candidates
There are several ways in which presidential candidates can finance their campaigns. Firstly, candidates can use their own money. They can also raise money from private donors, with individuals able to contribute up to a specific limit to a primary candidate. Additionally, they can receive funding from political action committee groups, commonly known as PACs or super PACs. These committees are established in the name of the candidate and can raise millions of dollars. Finally, candidates can receive government funding, although this comes with strict limitations on spending and, as a result, has been avoided by mainstream candidates in recent elections.
The Federal Election Commission (FEC) has rules in place to control how money is spent and has set limits on campaign spending. For instance, candidates may spend up to an additional $50,000 of their own money, and they must keep diligent records of where the money comes from and how it is spent. The FEC enforces restrictions on money spent on political campaigns, and all expenses must be reported through a bank account monitored by the FEC. While candidates can use the funds for various endeavours aimed at influencing the election, such as travel, administration, and salaries, the FEC prohibits the use of campaign funds for personal use.
If a candidate receives contributions but drops out of the race or loses the primary, contributions must be refunded to individual donors within 60 days. Alternatively, the candidate can redistribute their funds with the contributor's permission. Once a campaign ends, there are rules in place that dictate how leftover money can be spent. Permitted uses include charitable donations, donations to other candidates, and saving for a future campaign, while personal use is prohibited.
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Congressional candidates
Political campaigns in the US are costly affairs, with billions of dollars spent by candidates, parties, and independent groups. This includes Congressional candidates, who are running for seats in the US House of Representatives or the Senate.
During the 2024 election cycle, Congressional candidates collected and disbursed substantial sums of money. In the first 12 months of the cycle (January 1, 2023 - December 31, 2023), Congressional candidates collected $1.3 billion and disbursed $718.7 million, according to the Federal Election Commission (FEC). This represents a significant increase in fundraising compared to previous cycles.
The money spent by Congressional candidates comes from a variety of sources. Individual donations play a significant role, with limits set on the amount that can be contributed by each individual. Additionally, Political Action Committees (PACs) contribute heavily to Congressional campaigns. These PACs can fund political advertisements, ballot initiatives, and other activities that support a particular candidate or political party. During the 2024 cycle, PACs contributed $176.1 million to House candidates and $28.4 million to Senate candidates as of December 31, 2023.
It's worth noting that the FEC enforces restrictions on money spent by Congressional candidates, and all expenses must be reported through a monitored bank account. This includes limits on personal spending, with candidates allowed to spend up to $50,000 of their own money, and requirements for reporting any donations received from other candidates or party committees. These regulations aim to ensure transparency and fairness in the campaign financing process.
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Political parties
During the 2024 election cycle, US political campaigns collected around $8.6 billion for the House, Senate, and presidential elections. Of this amount, political action committees (PACs) contributed over 65% or about $5.6 billion. Party committees raised over $929 million, with the Democratic National Committee (DNC) receiving $188.6 million and the Republican National Committee (RNC) receiving $130.1 million. The remaining funds came from local, state, and national party committees.
The Federal Election Commission (FEC) enforces restrictions on campaign spending and requires all expenses to be reported through a monitored bank account. Campaigns can use the funds for various activities such as advertising, polling, and staff salaries. However, the use of campaign funds for personal use is prohibited by the FEC.
In addition to traditional PACs, there are also super PACs or independent expenditure-only political committees that can make unlimited independent expenditures without directly coordinating with candidates or parties. Spending by PACs has increased significantly, and they can substantially affect the political environment in which federal candidates compete.
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Political action committees (PACs)
PACs can receive up to $5,000 from any one individual, PAC, or party committee per calendar year, and they can give up to $5,000 to a candidate committee per election (primary, general, or special). They can also give up to $15,000 annually to any national party committee and $5,000 annually to other PACs.
There are several types of PACs, including connected PACs, non-connected PACs, and super PACs. Connected PACs, or corporate PACs, are established by businesses, non-profits, labor unions, trade groups, or health organizations. They receive and raise money from a restricted class, such as managers and shareholders in a corporation or members of a non-profit organization. Non-connected PACs, on the other hand, are not sponsored by or connected to any specific entity and can solicit contributions from the general public. Super PACs, or independent expenditure-only political action committees, can raise unlimited amounts from individuals, corporations, unions, and other groups to spend on activities like ads advocating for or against political candidates. However, they are not allowed to coordinate with or contribute directly to candidate campaigns or political parties.
The amount of money contributed to and spent by PACs has been increasing over the years. During the 2020 election cycle, campaigns raised over $9 billion, and PACs contributed a significant portion of that total. Between January 2023 and April 2024, PACs accounted for over 65% of the approximately $8.6 billion collected for the 2024 House, Senate, and presidential elections.
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Outside spending
The development of super PACs, or independent expenditure-only political committees, has also contributed to the rise of outside spending. Super PACs can raise unlimited amounts of money from corporations and individuals, and they are not subject to federal limits on campaign contributions. While they cannot directly contribute to or coordinate with campaigns and candidates, super PACs can use their funds to influence elections by funding political advertisements, ballot initiatives, and other activities that advocate on behalf of a candidate or political party.
Online political advertising has become an increasingly important channel for outside spending. In the 2024 election cycle, online political advertisers spent $1.35 billion on ads on Google and Meta, with more than half of that spending coming in the final two months before the election. This surge in spending was driven by candidates' appeals to voters and national groups seeking to influence state ballot measure results. Spending on state ballot measures can be funded largely by out-of-state donors, and it can rival the amount spent on House and Senate races.
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Frequently asked questions
OpenSecrets predicted that the 2024 federal election cycle would cost at least $15.9 billion, surpassing the 2020 election cycle's total of $15.1 billion.
Presidential candidates raised $1.6 billion and spent over $1.3 billion in the first 21 months of the 2023-2024 election cycle. Congressional candidates collected $3.3 billion and disbursed $2.8 billion.
Political Action Committees are groups that spend money to influence elections. They are often funded by corporations, trade associations, labour unions, and non-profits. In the 2023-2024 election cycle, PACs raised $12.3 billion and spent $10.9 billion.
"Dark money" refers to the millions of dollars spent by outside groups on elections without revealing the source of their funding. This allows these groups to influence elections and policy changes without transparency.
While some academics argue that campaign spending does not guarantee victory, OpenSecrets found that "money doesn't always equal victory...but it usually does."
