Real estate tycoon Ron Weiser, a major contributor to the Michigan Republican Party, has decided to stop funding the party due to concerns about its management.
He disagrees with Republicans who spread false information about election results and finds it ridiculous to claim that Donald Trump won the state of Michigan, which he lost by 154,000 votes in 2020.
Weiser questions the party’s ability to utilize funds effectively. This withdrawal of financial support reflects the consequences faced by Republicans in key battleground states like Michigan and Arizona, who staunchly supported former President Trump and his baseless claims of election fraud in 2020.
Both parties have experienced significant financial losses, undermining Republican efforts to win crucial swing states that could determine the outcome of future elections.
Financial records and interviews with major donors and campaign experts reveal that the Arizona Republican Party has minimal cash reserves, with less than $50,000 available for expenses. This amount is notably lower than the nearly $770,000 it had four years ago.
The Michigan party’s federal account has also seen a decline, dropping from nearly $867,000 two years ago to approximately $116,000. The parties’ limited funds hinder their ability to support candidates effectively, impacting activities such as promoting candidates, organizing get-out-the-vote initiatives, funding advertisements, and recruiting volunteers.
Financial filings reveal that the Arizona party spent over $300,000 on “legal consulting” fees, which included expenses related to lawsuits seeking to overturn Trump’s defeat in Arizona.
Additionally, funds were allocated to legal representation for former party chair Kelli Ward during investigations by the Justice Department and a congressional committee. Further expenditures in Arizona were directed towards an election night party and a bus tour for Trump-endorsed candidates, all of whom lost in the 2022 midterm elections.
As a result of these events, multiple Republican donors have decided to cease their financial contributions. They criticize the party leadership’s involvement in attempts to overturn the 2020 election, support for losing candidates who endorse Trump’s election conspiracy theories, and extreme positions on issues such as abortion.
Michigan’s state party chair, Kristina Karamo, has faced criticism for her handling of party finances and accusations of exploiting the party for personal gain.
Some major donors, including Jim Click, have expressed disappointment with the increasing influence of the right-wing within the party’s operations. Click and others have chosen to support candidates directly or contribute to other political fundraising groups.
Karamo, however, had expressed a desire to distance the party from established donors during her campaign for the chair position, emphasizing a shift toward grassroots support.
The financial difficulties faced by the Arizona and Michigan Republican parties have implications for the upcoming 2024 presidential election, as both states are critical swing states.
Not all Republican parties have encountered the same financial challenges, with North Carolina’s party having nearly $800,000 in its federal accounts at the end of 2022. However, obtaining a complete overview of party finances is challenging due to reporting delays and varying reporting requirements for different accounts.
It should be noted that state parties also receive funding from national party organizations, external groups, and political action committees.
Michigan became a center for conspiracy theories following Trump’s loss in the 2020 election. Karamo was fined for filing a lawsuit based on unfounded claims of voting irregularities in Detroit.
Concerns over transparency have arisen, and former state party budget chairman Matt Johnson accused Karamo of keeping the party’s finance committee uninformed about its financial situation.
The review of financial filings for both state parties reveals a sharp decline in donor contributions, contributing to their financial struggles.
The Michigan party’s federal account received only $51,000 in the first quarter of 2023, projecting to raise less than a quarter of its earnings during the same period in the 2019 election cycle.
In March, Karamo disclosed that the Michigan party had accumulated $460,000 in liabilities after the 2022 midterms. Although not an unusually large amount, it would typically be covered through fresh fundraising efforts.
Similarly, the Arizona party raised approximately $139,000 in the first quarter of 2023, compared to over $330,000 in the equivalent period after the 2018 midterms.
Jeff DeWit, the new chair of the Arizona Republican Party and former NASA chief financial officer in the Trump administration, is working to restore the party’s appeal to donors by prioritizing electoral victories. According to spokesperson Dajana Zlaticanin, contributions have increased, with over $40,000 raised in May.
Some donors in Michigan have started discussing alternative ways to support individual Republican candidates and bypass the state party.
However, replicating the organizational strength and infrastructure of the state party is a challenging task, as noted by Jeff Timmer, a former executive director of the Michigan Republican Party.
Timmer emphasized that building such infrastructure quickly enough to secure victory in the 2024 election is highly improbable.
Jonathan Lines, who preceded Kelli Ward as Arizona’s party chairman, predicts that new donor funds will mainly flow towards political action committees and other groups that financially support campaigns rather than directly to the state party.
Nonetheless, the lack of sufficient funding for the state party will adversely affect many Republican campaigns in the upcoming year, according to Lines.
The financial struggles faced by the Michigan and Arizona Republican parties demonstrate the consequences of losing significant donor support.
These challenges have the potential to hinder their efforts to win critical swing states in the 2024 presidential election. Without adequate funds, the parties will face difficulties in promoting candidates, mobilizing voters, and carrying out essential campaign operations.
