New Rules Delay Federal Funds for Candidates

For the first time, a cash shortage will keep the Federal Election Commission from giving presidential candidates all the federal campaign dollars they are entitled to when the first checks are sent.

Campaign officials estimate they may get as little as 60% of the federal matching funds due Jan. 2.

The FEC says it will make good on the unpaid portion as soon as more tax dollars flow in early next year. In the meantime, campaigns expect to borrow the missing money from banks, using the government’s guarantee as collateral.

The shortfall is not the result of a drop-off in funds designated by taxpayers on their tax returns. It stems in part from a procedural change in 1991 that requires the FEC to first set aside tax dollars for the general election and party conventions before payments are made for the primaries.

In addition, nearly all major primaries are scheduled between February and April, earlier than in the past. That means campaigns have done earlier fund-raising that qualifies for matching funds.