Key Point: “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.”

The Daily Beast: The RNC’s Fundraising Hole Is Even Deeper Than It Looks

By: Roger Sollenberger and Reese Gorman

• It’s no secret that the Republican National Committee is in dire financial straits. But what’s less known is just how bad that situation really is. 

• 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. Instead, that money can only support a limited range of activities. (As luck would have it, much of that money can be spent on Donald Trump’s legal bills, potentially even to help pay down the judgments against him.)

• 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.

• The Daily 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. (At this same point in 2020, the money in the RNC’s Cromnibus accounts accounted for less than 10 percent—$7.5 million—of the total $77 million cash on hand.)

• The upshot is that while the DNC’s cash advantage has allowed the party to build up its main stash to fuel political activities, the RNC’s financial strains could continue to multiply in unexpected ways as the 2024 election approaches.

• The party is navigating a cash crunch brought on by a combination of poor fundraising and heavy spending, while facing the prospect of devoting major resources to help shore up down-ballot candidates, financially troubled state parties, and its presidential nominee, Trump—who himself faces a fundraising crisis after siphoning tens of millions of dollars from supporters to fund his snowballing personal legal bills.

• This pinch seems particularly tight when it comes to the RNC’s “legal” account. The party has already committed to an aggressive so-called “election integrity” effort, which will be helmed by Trump’s election-denying attorney Christina Bobb. 

• “[E]lection challenges could destroy the RNC financially,” the source continued, “especially if the adults in the room lose control and you see a bunch of frivolous lawsuits, with penalties and sanctions. And [new RNC chair Michael] Whatley, who’s pigeonholed himself as the election integrity guy, he’ll be blamed.”

• And while the national party has pledged not to pay Trump’s personal legal bills, their new joint fundraising agreement prioritizes his Save America leadership PAC, where the majority of disbursements go towards Trump’s stable of attorneys.