Taxpayer Dollars – FUNDED What?

Presidential campaign funds meant for electing officials were instead spent on lavish convention parties and inflated salaries, revealing decades of taxpayer dollar misuse by both major political parties.

At a Glance

• From 1976 to 2012, the DNC and RNC misused millions in taxpayer dollars for convention extravagance rather than direct campaign spending
• In 2012 alone, each party received $17.7 million (equivalent to $50.2 million today) for convention festivities
• RNC’s current chief of staff earns $238,266 plus $135,000 through a shell company, raising transparency concerns
• Delegates face personal costs of $3,000-$10,000 to attend conventions, creating financial barriers to participation
• After 2014, these funds were redirected to pediatric medical research, though convention security remains publicly funded

Decades of Taxpayer-Funded Convention Extravagance

For nearly four decades, American taxpayers unknowingly funded political party celebrations instead of actual election campaigns. Between 1976 and 2012, both Democratic and Republican National Committees diverted millions from the Presidential Election Campaign Fund to finance increasingly lavish national conventions. These weren’t modest political gatherings but multi-million-dollar productions featuring ornamental decorations, luxury accommodations, and even professional speech coaching for party officials. The true nature of this spending remained largely hidden from public scrutiny until exposed by fiscal watchdogs.

Dr. Tom Coburn, known for his principled fiscal conservatism, highlighted this wasteful spending in his 2012 “Wastebook” report. The report detailed how taxpayer dollars were being used for “entertainment, catering, transportation, hotel costs, production of candidate biographical films” instead of legitimate campaign activities. This revelation sparked public outrage about how political parties were treating public campaign funds as party slush funds rather than resources for informing voters about candidates and issues.

Behind-the-Scenes Financial Maneuvers

The pattern of questionable financial practices continues today. Current RNC Chief of Staff Richard Walters earns more than anyone else at the committee, including the chairwoman. His salary of $238,266 is supplemented by an additional $135,000 funneled through a shell company called Red Wave Strategies. This arrangement obscures his true compensation from public disclosure forms, where payments are vaguely described as “political strategy services.” The practice raises serious concerns about transparency in how donor and public funds are managed.

“It just smells,” said Michael Steele, former RNC chairman, describing these financial arrangements as part of a culture of “sweetheart deals” that undermines donor trust and organizational integrity.

Campaign finance expert Larry Noble was more direct in his assessment: “This is a serious reporting violation. It seems pretty blatant. Hiding the recipient undermines the purpose of disclosure. The question is, why are they enriching him in this particular way?” The RNC has made other questionable expenditures, including nearly $2 million for Trump properties, over $100,000 for Donald Trump Jr.’s book, and even $25,000 for customized Sharpies for President Trump.

Financial Barriers to Democratic Participation

While party officials enjoy generous compensation, ordinary citizens who wish to participate as delegates face significant financial hurdles. Delegates must spend between $3,000 and $4,000 to attend conventions, with costs reaching up to $10,000 for those from distant locations like Guam and Puerto Rico. These expenses include hotel rooms ranging from $300 to over $800 per night, transportation, meals, and other incidentals. For many, these costs are prohibitive, effectively creating an economic barrier to political participation.

“I was surprised that the party, which is a national organization, had not negotiated better group rates considering that they have guaranteed occupancy,” noted Virginia Ramos Rios, highlighting the disconnect between party leadership and the financial realities facing ordinary delegates.

Many delegates have resorted to crowdfunding platforms like GoFundMe to raise money for their expenses, while others share accommodations or stay with friends to reduce costs. Raymond Braun observed, “These people are taking on debt to participate in the process,” underscoring how financial considerations can limit who gets to participate in our democratic processes. This creates a system where only the financially well-off or those with institutional support can afford to be delegates.

Reform and Redirection

Public awareness of these expenditures eventually led to change. In 2014, Congress redirected the convention funding to pediatric medical research, ending the decades-long practice of taxpayer-funded political parties. However, taxpayers still foot the bill for convention security, which remains a significant public expense. While the funding source has changed, questions persist about the value and cost of these increasingly elaborate political spectacles that seem to benefit party insiders more than advance democratic participation.

As conventions continue to grow more expensive, the original purpose of these gatherings – to conduct party business and nominate candidates – has been overshadowed by made-for-television productions that showcase party unity while excluding those who cannot afford to participate. The history of convention funding reveals a troubling pattern of how public resources intended for democratic processes can be diverted to benefit political insiders and create barriers to citizen participation in our electoral system.