HomeTop StoriesHow do donations to the founding fund work?

How do donations to the founding fund work?

Donald Trump’s inauguration committee has raised a record $170 million for the plethora of balls, receptions, parades, dinners and related events surrounding his swearing-in as president on Monday.

The financial proceeds — which could reportedly reach $200 million by Inauguration Day if money continues to flow — surpass the $106 million raised for the returning president’s first inauguration in 2017, which was a record at the time was. It is also much larger than the $65 million donated to Joe Biden’s inauguration four years ago.

Despite the opulence of the events being organized to mark Trump’s second political coming, his inauguration committee is likely to be left with a surplus of cash as tech barons and assorted billionaires have engaged in a competition to ingratiate themselves with his to gain access to him again. to the White House.

What rules apply to presidential inaugurations?

Regulations regarding initial fundraising are overseen by the Federal Election Commission (FEC), as codified in Act 36, Section 510 of the United States Code.

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What does this require?

Basically, the committee will file a report with the FEC no later than 90 days after the inauguration, disclosing all donations worth $200 or more. The declaration must state the amount of the donation, the date it was made and the name and address of the donor.

What restrictions are there on donations?

There are no restrictions on the amount that can be given or accepted, nor are there any requirements to explain how the funds are used. The Trump Commission has set a figure of $1 million for donors who want to secure the maximum level of access to the new president and his entourage, but this is not legally required. Moreover, so many wealthy donors have pledged this amount that the committee has said it cannot guarantee all of them the privileged access to the new president’s inaugural events that it was supposed to secure.

The committee is allowed to accept money from companies and labor organizations – as evidenced by the large number of tech and Silicon Valley bosses who have coughed up $1 million in contributions in the hope of gaining access.

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But the new president’s team is barred from accepting donations from foreigners under the 1971 Federal Election Campaign Act. Likewise, foreign citizens are prohibited from making or attempting such donations.

Is there transparency about how initial donations are spent?

No. This has become a bugbear for Democrats in Congress. Catherine Cortez Masto, a Democratic senator for Nevada, recently reintroduced a bill she first introduced in 2018, the Inaugural Committee Transparency Act, which would tighten oversight and disclosure requirements for donations.

It would require founding committees to disclose the name and address of every person who paid $200 or more and provide an accounting of what each expenditure is used for.

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Committees would also be required to donate unused donations to a registered charity within 90 days of the inauguration. Currently, there is no transparency about what happens to unspent funds, a relevant point given that Trump’s committee has raised far more than necessary. There is speculation that Trump will use surplus money to fund his presidential library.

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“The American people deserve to know how these funds are being spent and exactly who they are coming from,” Cortez Masto told NBC. “The inauguration of a president of any party should not be used as an opportunity for personal enrichment or cronyism.”

What other funding does the President-elect’s Inaugural Committee benefit from?

Inaugural events that take place at the U.S. Capitol — site of the swearing-in ceremony — are publicly funded, thanks to the Joint Congressional Committee on Inaugural Ceremonies, which is formed every four years by a congressional resolution. It funds the swearing-in ceremony and congressional lunch on Inauguration Day.

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