Barack Obama Renounced Public Financing for Campaign

By not accepting any aid from public funds to finance his campaign, Barack Obama is giving himself a strategic advantage in the race to the presidency. It is the first time that a presidential candidate has not accepted public financing since the adoption of the campaign financing law in 1971. The Democratic candidate announced his decision in a video on his official website on Thursday June 19.

The Senator had initially planned to benefit from public funds for his campaign if his Republican adversary did the same. He explains his change of mind, arguing that even though “supporting a robust system of public financing for the campaigns, the system that exists today is broken, and we are faced with adversaries who have become masters in the art of profiting from a broken system.”

For him, John McCain and the Republican National Committee stray from the principle of the law of public financing for campaigns by helping themselves to lobbyists’ and political action committees’ contributions. These groups can ask for as much money as they desire, and can create television ads that aren’t controlled by the official campaigns, which are often very violent attacks against the opposing candidate.

Since the beginning of the campaign, Barack Obama’s team has looked to position its candidate as the candidate for a change from the anti-establishment in Washington. His spokesman noted that the campaign was not financed and did not encourage donations from the influential Progressive Media USA group, which wanted a strong anti-McCain voice. Today, his team is attempting to spread the idea that Barack Obama’s “private” campaign has the same goals and ideas as a “public” campaign: avoiding donations by pressure groups.

More Funds Without Public Financing

But Barack Obama also has a financial interest in refusing funds from the American treasury: according to the campaign financing law, when a candidate applies for public funds, he cannot then spend more than the amount given. This year, these funds were limited to $84.1 million (around 54 million Euros).

The Democratic candidate boasts that his campaign is led thanks to small individual contributions. He can allow himself to do this because he beat all the records in his collection of funds; by not accepting public financing, Barack Obama gives himself the possibility of collecting unlimited funds.

Furthermore, Mr. Obama is setting the dials back to zero: according to law, individuals may only give a maximum of $2300 to a candidate. All those who had already reached this ceiling during the primaries could again give up to $2300. Knowing that during the primaries, the Democratic Senator gathered more than 265 million dollars (or triple what the public treasury offers), it is certain that he will collect much more than $84.1 million.

Reaction From the McCain Camp

Following Barack Obama’s declaration, John McCain confirmed that he would be benefiting from federal financing for his campaign, adding: “Many things are at stake in this election. It is also a question of confidence. He should keep his word.”

Several hours before, John McCain’s communications director affirmed that “the true test for a presidential candidate is to know if he has principles and keeps his word with the American people. Barack Obama failed this test today, and the fact that he is going back on his promise to take part in the public financing system undermines his promise for a new type of politics. Barack Obama is now the first presidential candidate since the Watergate scandal to carry out his campaign entirely with private funds.”