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What Happens to Leftover Campaign Funds When a Candidate Drops Out?

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After disappointing performances in the Iowa and New Hampshire Caucuses, Republican presidential candidates Chris Christie and Carly Fiorina have already called off their campaigns. This weekend, former Florida governor Jeb Bush also decided to bow out. But what happens to all the leftover campaign funds—Bush had raised more than $150 million, the most of any GOP candidate—when the low-polling candidates drop out?

One thing's for sure: Upset candidates can't console themselves by putting the dough toward a new yacht and sailing off to recuperate. The Federal Election Commission has strict rules about what federal candidates can and can't do with leftover campaign money, and the biggest directive is that they can't pocket it for personal use.

Here's what a campaign committee is allowed to do with any lingering cash: it can donate the funds to charities or political parties; it can contribute $2000 per election to other candidates; and it can save the money in case the candidate chooses to run again. However, those regulations don't apply to the relatively new super PACs (Political Action Committees); this is only the second election where they have played a role, and there are currently no rules to stipulate what happens to that money beyond that it cannot go to fund another federal candidate. Much of that money tends to be returned to its original donors, used to wrap up the failed campaign, or donated to back a state-level candidate. The goal, however, is always to spend all of that money.

Running a campaign is an expensive proposition—Barack Obama spent nearly $750 million on his 2008 White House bid, and in 2012 he spent $985 million on reelection while challenger Mitt Romney spent $992 million—and insufficient cash is often a reason campaigns go belly up.

As for winning (or sometimes losing) politicians, they'll often put their leftover funds toward their next race. If they choose not to run, they have to abide by the same FEC rules. Wonder why this law is in effect? Until 1993, U.S. Representatives who took office before January 8, 1980, were allowed to keep any leftover campaign cash when they retired, but a study showed that a third of Congress kept and spent millions in campaign donations on personal items like clothing, jewelry, artwork, personal travel, and dry cleaning. Embarrassed, Congress passed a law negating this custom for the House; the Senate already had provisions in place so this wouldn't happen.

In reality though, officials can usually find a way to make that cash still work for them (and state laws differ from federal ones). After Christie won reelection as New Jersey's governor in 2014, his campaign was granted permission to use some of its remaining war chest to cover the legal fees Christie incurred during the Bridgegate scandal. And this was well before he dropped $26.7 million on his failed presidential bid.

A version of this article originally ran in 2012.

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Chris Radburn—WPA Pool/Getty Images
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politics
The Secret Procedure for the Queen's Death
Chris Radburn—WPA Pool/Getty Images
Chris Radburn—WPA Pool/Getty Images

The queen's private secretary will start an urgent phone tree. Parliament will call an emergency session. Commercial radio stations will watch special blue lights flash, then switch to pre-prepared playlists of somber music. As a new video from Half As Interesting relates, the British media and government have been preparing for decades for the death of Queen Elizabeth II—a procedure codenamed "London Bridge is Down."

There's plenty at stake when a British monarch dies. And as the Guardian explains, royal deaths haven't always gone smoothly. When the Queen Mother passed away in 2002, the blue "obit lights" installed at commercial radio stations didn’t come on because someone failed to depress the button fully. That's why it's worth it to practice: As Half as Interesting notes, experts have already signed contracts agreeing to be interviewed upon the queen's death, and several stations have done run-throughs substituting "Mrs. Robinson" for the queen's name.

You can learn more about "London Bridge is Down" by watching the video below—or read the Guardian piece for even more detail, including the plans for her funeral and burial. ("There may be corgis," they note.)

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Christie's Images Ltd. 2017
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History
Abraham Lincoln Letter About Slavery Could Fetch $700,000 at Auction
Christie's Images Ltd. 2017
Christie's Images Ltd. 2017

The Lincoln-Douglas debates of 1858, in which future president Abraham Lincoln spent seven debates discussing the issue of slavery with incumbent U.S. senator Stephen Douglas, paved the way for Lincoln’s eventual ascent to the presidency. Now part of that history can be yours, as the AP reports.

A signed letter from Lincoln to his friend Henry Asbury dated July 31, 1858 explores the “Freeport Question” he would later pose to Douglas during the debates, forcing the senator to publicly choose between two contrasting views related to slavery’s expansion in U.S. territories: whether it should be up to the people or the courts to decide where slavery was legal. (Douglas supported the popular choice argument, but that position was directly counter to the Supreme Court's Dred Scott decision.)

The first page of a letter from Abraham Lincoln to Henry Asbury
Christie's Images Ltd. 2017

In the letter, Lincoln was responding to advice Asbury had sent him on preparing for his next debate with Douglas. Asbury essentially framed the Freeport Question for the politician. In his reply, Lincoln wrote that it was a great question, but would be difficult to get Douglas to answer:

"You shall have hard work to get him directly to the point whether a territorial Legislature has or has not the power to exclude slavery. But if you succeed in bringing him to it, though he will be compelled to say it possesses no such power; he will instantly take ground that slavery can not actually exist in the territories, unless the people desire it, and so give it protective territorial legislation."

Asbury's influence didn't end with the debates. A founder of Illinois's Republican Party, he was the first to suggest that Lincoln should run for president in 1860, and secured him the support of the local party.

The letter, valued at $500,000 to $700,000, is up for sale as part of a books and manuscripts auction that Christie’s will hold on December 5.

[h/t Associated Press]

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