Florida Governor Ron DeSantis has surpassed former President Donald Trump in fundraising for the latest quarter, garnering $20 million compared to Trump’s $17.7 million. While this headline suggests positive momentum for DeSantis, a closer look reveals potential challenges for his presidential campaign.
Despite DeSantis leading in top-line fundraising, Trump’s fundraising numbers may be underestimated due to a complex allocation strategy. Trump directs funds to a committee that delays reporting, potentially skewing the perceived financial gap between the two candidates.
Cash on hand, a critical indicator of a campaign’s financial health, favors Trump with $22.52 million compared to DeSantis’s $12.24 million. The significance lies in a campaign’s ability to allocate resources for future needs, such as hiring staff or initiating early field campaigns.
DeSantis’s campaign has shown a high “burn rate,” spending 39% of its raised amount in the first six weeks. This could signal financial strain and challenges in meeting fundraising expectations for the more expensive phases of the campaign.
Reports suggest DeSantis is laying off staff and reallocating spending to early-voting states, indicating awareness of potential financial difficulties. Some staff may transition to an independent committee supporting DeSantis, but coordination restrictions could lead to less effective spending.
Of DeSantis’s total fundraising, $3 million is designated for the general election, applicable only if he secures the Republican nomination. Additionally, attracting new donors becomes crucial as two-thirds of existing donors have already contributed the maximum allowable amount for the primary campaign.
While DeSantis outperforms other non-Trump candidates in fundraising, they maintain more modest campaigns. Nikki Haley and Tim Scott, for instance, raised and spent less but adopted leaner campaign approaches.
The financial landscape is fluid, and circumstances can rapidly evolve in a competitive election. The current figures provide a snapshot, but the path forward for DeSantis involves navigating fundraising challenges and securing sustained support.