Could Donald Trump’s legal expenses complicate his electoral campaign?

A few days of respite for Donald Trump. The Court of Appeal of the State of New York agreed, Monday March 25, to reduce to 175 million dollars (more than 160 million euros) the amount of the bail he must pay as part of a civil procedure. The billionaire initially had to pay $454 million in fines and interest (a little less than 420 million euros) before the end of the day on Monday. A sum that he was unable to raise, according to his lawyers. The judges ultimately granted him ten more days to post a lower bail, pending an appeal decision on his conviction.

“I will deposit $175 million in cash, bonds or stocks, or whatever is necessary, very quickly, within ten days”, promised Donald Trump on Monday. If the future Republican presidential candidate found himself unable to pay, it would “would damage the reputation he has built for years”estimates Françoise Coste, professor of American studies at Toulouse-Jean-Jaurès University. New York prosecutor Letitia James could then seize the real estate assets and freeze the bank accounts of the billionaire and his two sons, also convicted in this case. “Politically, the consequences of non-payment would perhaps make it lose its splendor”analyzes the academic:

“The argument that he is a business genius who can run the country efficiently, with the same success he had in the business world, would have difficulty holding water.”

Françoise Coste, professor of American studies

at franceinfo

Over the years, the billionaire has in fact forged an image of a successful businessman, at the head of a real estate empire. “The fact that he cannot pay the initial amount [de 454 millions de dollars] proves that he is not as rich as he claims”, says Françoise Coste. Irony of the situation: Donald Trump received this heavy fine for having exaggerated the income of his companies for years. “His personal financial situation is much more fragile than he admits”insists the academic.

Millions of dollars in legal costs

Could Donald Trump’s financial woes jeopardize his chances of returning to the White House? It’s not just a question of image. In a country where presidential campaigns require exorbitant spending (the Republican and Joe Biden each spent $1.3 billion in 2020), money is a hot topic. And the billionaire, who could appear at several trials between now and the November election, has already drawn heavily on his campaign funds to finance his legal costs.

Donald Trump, for this, used the money raised by ppolitical action committees (PAC), structures responsible for receiving donations from individuals and companies wishing to support a candidate. These organizations “are used to finance a candidate’s communications and events, but are separate from the campaign committee”explains Ludivine Gilli, historian and director of the North America Observatory at the Jean-Jaurès Foundation. According to official documents filed with the US Election Commission, two PACs spent more than $50 million in 2023 to pay the billionaire’s legal fees, reports the Guardian. That “highlights how much of Donald Trump’s impressive fundraising was redirected from his presidential campaign to his legal battles”notes the British daily.

“PACs declare how they spend their funds, but they can do pretty much whatever they want with them. They have very little oversight.”

Ludivine Gilli, historian specializing in the United States

at franceinfo

Some critics have questioned the possibility for Donald Trump to pay his legal costs this way, but, “so far, no one has challenged [cette pratique] in justice”, continues Ludivine Gilli. These sums are used in particular to pay the lawyers who advise the ex-president in the two cases in which he is accused, in Washington and in Georgia, of having tried to influence the results of the 2020 presidential election.

The Republican can still count on his donors

Donald Trump’s opponents also question his ability to last the entire campaign with diminished reserves. At the beginning of February, his former opponent in the Republican primaries, Nikki Haley, had thus stated on the social network that he does not “couldn’t beat Joe Biden if he spent all his time and money on legal cases”.

It is true that the billionaire is currently far behind the Democratic president in terms of available funds. At the beginning of March, Joe Biden’s campaign had $71 million in cash, reports CBS. Donald Trump’s committee had “only” $33.5 million available. Most of the expenses incurred by the Democratic candidate’s team were used to finance its travel, its campaign spots and to hire employees. While, since the start of 2024, the campaign of its Republican rival and the PACs that support it have had to spend An additional $10 million in legal costs, notes CBS.