TRANSITION | Forming the next government
20 June 2008
Democrat Barack Obama Opts Out of Public Financing
Republican, Democratic candidates battle over terrorism, environment
Washington -- Presumed Democratic presidential nominee Barack Obama will not use public financing to pay for his general election campaign, making him the first candidate to opt out of the system since it was created in 1976. This move enables Obama to raise and spend as much money as he chooses.
The public financing system has funneled tens of millions of dollars into presidential campaigns. When Americans file their annual income tax returns, they are asked if they want to donate $3 to a presidential election campaign fund. Those donations are then split among the presidential candidates for their general election campaign use. In 2008, major party candidates are eligible to receive $84 million to use for their campaigns once they are officially declared their parties’ nominee at national conventions. (See “Public Financing Fuels U.S. Presidential Campaigns.”)
By agreeing to participate in public financing, a candidate cannot accept additional private contributions. Obama raised nearly $250 million in the primary campaign season; by not participating in public financing, political experts believe he can raise at least another $250 million.
Federal law allows Americans to donate up to $2,300 to a candidate in the general election campaign. Many of Obama’s donors thus far have donated small amounts of money. This allows the Illinois senator to return to his donors to ask for more money, which enables him to raise money more quickly and more efficiently than a candidate who has to seek new donors.
In a video message to supporters, Obama said the current public financing system is “broken” because it has loopholes allowing special interests to raise and spend unlimited amounts of money on campaigns.
“You've fueled this campaign with donations of five dollars, 10 dollars, 20 dollars, whatever you can afford. And because you did, we've built a grassroots movement of over 1.5 million Americans,” Obama said. "You've already changed the way campaigns are funded because you know that's the only way we can truly change how Washington works.”
Presumed Republican nominee John McCain called Obama’s decision “disturbing.” Obama said last fall he would use public financing if his Republican opponent did the same.
"This election is about a lot of things, but it's also about trust,” McCain said. “It's also about whether you can take people's word. ... He said he would stick to his agreement. He didn't."
McCain has not specifically stated he will take public financing, but political experts suggest that the presumed Republican nominee will do so.
McCAIN UNVEILS NEW POSITION ON OFFSHORE OIL DRILLING
As the average cost of a gallon of gas in the United States topped $4 -- making gas prices a big campaign issue -- political leaders on both sides of the aisle are looking for solutions.
Although he previously said he opposed new offshore oil drilling, the Arizona senator announced June 17 that he now supports allowing drilling along certain coastlines. Drilling in much of these areas has been banned for 27 years, largely due to environmental concerns.
Addressing those concerns, McCain said, “Offshore drilling [is] safe enough these days that not even hurricanes Katrina and Rita could cause significant spillage from the battered rigs off the coasts of New Orleans and Houston.”
Responding to McCain’s position, Obama said there is "no way that allowing offshore drilling would lower gas prices right now. At best you are looking at five years or more down the road."
President Bush also announced this week that he supports ending the offshore drilling ban. A May Gallup Poll found that 57 percent of Americans favor allowing offshore drilling.
Dealing with terrorists was a hot topic on the campaign trail this past week as well, in light of a U.S. Supreme Court ruling allowing enemy combatants the right to challenge their detention. (See “Guantanamo Detainees Win Right to Challenge Their Detention.”)
Obama says he supports the court’s ruling, while McCain said he strongly disagrees with the court’s decision.
McCain’s campaign highlights the Arizona senator’s years of military experience to show he would be a stronger president on national security issues.
Campaigning for McCain, former Republican presidential candidate Rudy Giuliani argued June 18 that Obama would be too defensive when fighting terrorism, saying the presumed Democratic presidential nominee would “go back to a pre-September 11th view of terrorism.”
Obama quickly responded, accusing the McCain camp of “fear-mongering.”
For more information on candidates’ views on the environment, national security and other issues, see “Candidates on the Issues.”
