Former President Donald Trump's political campaign is facing financial hurdles as it struggles to keep pace with President Joe Biden's strong financial position.
What Happened: Despite raising substantial funds, Trump's campaign has been spending almost as quickly, leaving him at a significant cash disadvantage against Biden.
An analysis by Politico reveals that most funds weren't spent on campaigning but were divided almost equally between fundraising expenses, legal bills, and actual campaigning.
On the other hand, Biden's campaign has nearly double the cash on hand compared to Trump's.
Trump's political operation has also been burdened with legal costs, accounting for $69.3 million in spending since the start of 2023.
Meanwhile, Biden's political operation has been more efficient. Through the end of March, it raised $365 million and spent $138 million.
However, Biden's operation was also still holding onto a lot of cash in its pipeline: more than $40 million in the Biden Victory Fund and $19 million in the Biden Action Fund.
Why It Matters: Trump's political operation has been grappling with financial challenges for some time now.
In April 2024, the Save America PAC, closely associated with Trump, faced financial strain after disbursing nearly $3.7 million in legal fees just in March.
This was part of a larger trend, with the PAC spending over $59.5 million on legal consultations since the beginning of 2023.
Furthermore, Trump's financial situation worsened due to aNew York fraud judgment against him. Every nine days, Trump's debt increased by $1 million due to interest, pushing his total owed to the state of New York to $455 million.
These financial challenges have limited Trump's ability to accumulate cash for his campaign, putting him at a disadvantage against Biden.
This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
