Why the RNC’s 'dire financial straits' are 'even worse' than you think

26 March 2024

When Ronna Romney McDaniel was still chairing the Republican National Committee (RNC), her critics were quick to point out that the organization had major fundraising problems under her watch. And those problems haven't gone away now that the RNC has new ultra-MAGA leadership that includes Chairman Michael Whatley and Co-Chair Lara Trump (2024 GOP presidential nominee Donald Trump's daughter-in-law and Eric Trump's wife).

In an article published on March 26, Daily Beast reporters Roger Sollenberger and Reese Gorman stress that the RNC's "dire financial straits" are "even worse" than what has been widely reported.

"On the surface," the journalists explain, "the RNC currently has more than $11 million on hand for this upcoming election cycle. While that's less than half of what the Democratic National Committee has in the bank at the moment — and far less than the $77 million the RNC had on hand at this point in the 2020 cycle — the RNC has pointed to fundraising numbers in recent months to suggest the party has turned a corner after a historically bad stretch last year."

Sollenberger and Gorman continue, "However, a close examination of the RNC's recent financial statements reveals that those numbers are hiding some holes. A lot of the RNC's recent fundraising — millions of dollars of it — is unusable for political spending…. An analysis of the RNC's various bank accounts indicates that the national party’s financial status, which the GOP has been desperately trying to paint in a positive light, is even worse than it already seemed."

According to the reporters, the Beast's "analysis of Federal Election Commission filings found that, of the roughly $22.3 million that the RNC has reported raising this year, more than $8 million of it — about 36 percent — cannot be used for political expenses."

"By way of comparison," Sollenberger and Gorman explain, "the DNC has reported about $34 million in receipts this year, with roughly $4 million of it — less than 12 percent — directed into its segregated Cromnibus accounts. The pattern holds true over the last year. Between the beginning of 2023 and the end of February, the DNC raised a total $154 million, with $22.4 million of it in the segregated accounts, FEC filings show. Over the same period, the RNC received less money overall —$109.5 million — with more of it going to its non-political accounts, $24.7 million."

Interviewed on condition of anonymity, a GOP source close to the RNC fears that the organization's financial woes will only get worse as the organization tries to please Donald Trump in 2024.

The source told the Beast, "They're going to get a lot more aggressive in their kooky lawsuits, like the one filed in Nevada on the crazy theory that counties have more registered voters than there should be. Under Ronna, that spending was far more strategic. But the election challenges could destroy the RNC financially, especially if the adults in the room lose control and you see a bunch of frivolous lawsuits, with penalties and sanctions. And Whatley, who's pigeonholed himself as the election integrity guy, he'll be blamed."

Read the Daily Beast's full report at this link (subscription required).

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