THE FINANCING OF electoral campaigns in the US happens at the federal, state and local levels. It has various components that ensure transparency. Sources of funding include individual contributors (max $2,800), political action committees (max $5,000) and super public action committees (no limit but they cannot deal directly with candidates).
The Republican National Committee and Democratic National Committee are primarily responsible for raising and spending money for political campaigns. Both the RNC and DNC are registered with the Federal Election Commission, which is an independent agency that monitors campaign finance. Candidates can also organise fundraising events where attendees have to donate money. That apart, online fundraising happens through social media. There are even merchandise sales. Apparently, Trump merch sales were burgeoning following an assassination attempt on him.
The contribution rules in the US clearly state that a campaign donor has to be a US citizen or lawfully admitted permanent resident. The campaign “does not accept contributions from corporations… unions, federal government contractors, national banks, those registered as federal lobbyists or… foreign nationals….”
The Federal Election Commission, created in 1975, ensures that candidates and party committees disclose sources, amounts of contributions and how they are spent. The FEC has six commissioners appointed by the president and confirmed by the senate. Only three commissioners can be from the same political party and all resolutions require at least four votes in agreement.
Sree Sreenivasan
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Before the FEC was formed, campaign contributions were mostly done covertly. Candidates, back then, used to depend on large donations to fund their campaigns. In the early 1970s the Watergate scandal shook American politics. President Richard Nixon was accused of letting five men break into the Democratic Party headquarters to steal documents. It led to his resignation and paved the way for the FEC Act, which marked a major shift in campaign finance.
On an individual level, the campaign finance system in the US is very effective. The problem is, the supreme court has made it very difficult to go after what is called dark money, which is generated and raised by companies, corporations and special interests. – Sree Sreenivasan, former professor at Columbia University Graduate School of Journalism
In the last few years, the Democrats and the Republicans brought in campaign finance bills, but none of them became law. In 2010, the Supreme Court lifted a ban on corporate and union expenditures for the election or defeat of candidates. Interestingly, the court ruling also brought in super PACs, which are criticised for not having any limit on contributions and for lack of transparency.
“On an individual level, the campaign finance system in the US is very effective,” Sree Sreenivasan, former professor at Columbia University Graduate School of Journalism and former chief digital officer of Metropolitan Museum of Art, New York, told THE WEEK. “The problem is, the Supreme Court has made it very difficult to go after what is called dark money, which is generated and raised by companies, corporations and special interests. Those make a big difference in the success of candidates big and small.”
Sreenivasan said even though there is excitement over Harris raising $200 million in a short time, “it is a drop in the bucket to how much money they will need. There are unlimited pockets on both sides. Corporations and special interests are much bigger, and better organised and more powerful on the Republican side.”
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According to the research group Open Secrets, the top donor for Trump in 2024 is Timothy Mellon of the Pittsburgh banking family who lives in Connecticut. He has donated $75 million for Trump in this cycle. SpaceX CEO Elon Musk, it is said, has privately gathered support for Trump. His money could come in handy in the swing states.
Harris, on the other hand, has personal rapport with many tech leaders at Amazon, Alphabet, Microsoft and Apple. She also has the support of philanthropist Melinda French Gates, Netflix co-founder Reed Hastings, Reid Hoffman of Linkedin, and former Facebook COO Sheryl Sandberg. “She has smashed record over record. The majority in her case are first-time and small donors,” Manu Bhagavan, a historian based in New York, told THE WEEK. “I believe she will continue to draw in money to her campaign because it is being excellently run.”
It remains to be seen whether there is donor fatigue, especially in the case of Trump admirers. His legal fund, which pays his lawyers battling out cases against him across the country, is getting millions from his campaign’s biggest donors. So that may prevent small donors from donating for Trump, as they fear their money will be used for his cases. “I don’t think there is any donor fatigue. Both candidates will raise a lot of money in the days to come,” said Ashok Kumar Mago, a Texas based businessman who is a Padma Shri recipient.
Some billionaires have become more vocal for Trump after the assassination attempt, but that kind of fervour is not reflected in their donations. “The assassination attempt had a huge impact the following days,” said Sreenivasan. “It looked as if Trump would easily win against Biden. But he is no longer against Biden. With a new candidate, the entire race has changed. The 100-plus days that are left is an indication on how fast things can move. Huge roller-coaster and seismic changes are going to come.”
Noting that Harris could raise over $200 million within a day, Kevin Olickal, Democratic representative in the 16th district of the Illinois house of representatives, said to THE WEEK, “This renewed optimism and energy in the party is exactly what was missing. The fundraising and volunteer mobilisation sparked by Harris has a psychological effect, and has forced the Republicans into defence. They now have to change their campaign strategy to focus on a candidate who is younger.”
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“Going forward, money will not likely be the issue that determines this race,” he said. “Both candidates will have the financial resources necessary to run a competitive campaign. The platform and messaging of each candidate will determine who is the next president.”
My spreadsheet reviewed a WalletHub ranking of financial distress for the residents of 100 U.S. cities, including 17 in California. The analysis compared local credit scores, late bill payments, bankruptcy filings and online searches for debt or loans to quantify where individuals had the largest money challenges.
When California cities were divided into three geographic regions – Southern California, the Bay Area, and anything inland – the most challenges were often found far from the coast.
The average national ranking of the six inland cities was 39th worst for distress, the most troubled grade among the state’s slices.
Bakersfield received the inland region’s worst score, ranking No. 24 highest nationally for financial distress. That was followed by Sacramento (30th), San Bernardino (39th), Stockton (43rd), Fresno (45th), and Riverside (52nd).
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Southern California’s seven cities overall fared better, with an average national ranking of 56th largest financial problems.
However, Los Angeles had the state’s ugliest grade, ranking fifth-worst nationally for monetary distress. Then came San Diego at 22nd-worst, then Long Beach (48th), Irvine (70th), Anaheim (71st), Santa Ana (85th), and Chula Vista (89th).
Monetary challenges were limited in the Bay Area. Its four cities average rank was 69th worst nationally.
San Jose had the region’s most distressed finances, with a No. 50 worst ranking. That was followed by Oakland (69th), San Francisco (72nd), and Fremont (83rd).
The results remind us that inland California’s affordability – it’s home to the state’s cheapest housing, for example – doesn’t fully compensate for wages that typically decline the farther one works from the Pacific Ocean.
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A peek inside the scorecard’s grades shows where trouble exists within California.
Credit scores were the lowest inland, with little difference elsewhere. Late payments were also more common inland. Tardy bills were most difficult to find in Northern California.
Bankruptcy problems also were bubbling inland, but grew the slowest in Southern California. And worrisome online searches were more frequent inland, while varying only slightly closer to the Pacific.
Note: Across the state’s 17 cities in the study, the No. 53 average rank is a middle-of-the-pack grade on the 100-city national scale for monetary woes.
Jonathan Lansner is the business columnist for the Southern California News Group. He can be reached at jlansner@scng.com
The up-and-coming fintech scored a pair of fourth-quarter beats.
Diversified fintech Chime Financial(CHYM +12.88%) was playing a satisfying tune to investors on Thursday. The company’s stock flew almost 14% higher that trading session, thanks mostly to a fourth quarter that featured notably higher-than-expected revenue guidance.
Sweet music
Chime published its fourth-quarter and full-year 2025 results just after market close on Wednesday. For the former period, the company’s revenue was $596 million, bettering the same quarter of 2024 by 25%. The company’s strongest revenue stream, payments, rose 17% to $396 million. Its take from platform-related activity rose more precipitously, advancing 47% to $200 million.
Image source: Getty Images.
Meanwhile, Chime’s net loss under generally accepted accounting principles (GAAP) more than doubled. It was $45 million, or $0.12 per share, compared with a fourth-quarter 2024 deficit of $19.6 million.
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On average, analysts tracking the stock were modeling revenue below $578 million and a deeper bottom-line loss of $0.20 per share.
In its earnings release, Chime pointed to the take-up of its Chime Card as a particular catalyst for growth. Regarding the product, the company said, “Among new member cohorts, over half are adopting Chime Card, and those members are putting over 70% of their Chime spend on the product, which earns materially higher take rates compared to debit.”
Today’s Change
(12.88%) $2.72
Current Price
$23.83
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Key Data Points
Market Cap
$7.9B
Day’s Range
$22.30 – $24.63
52wk Range
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$16.17 – $44.94
Volume
562K
Avg Vol
3.3M
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Gross Margin
86.34%
Double-digit growth expected
Chime management proffered revenue and non-GAAP (adjusted) earnings before interest, taxes, depreciation, and amortization (EBITDA) guidance for full-year 2026. The company expects to post a top line of $627 million to $637 million, which would represent at least 21% growth over the 2024 result. Adjusted EBITDA should be $380 million to $400 million. No net income forecasts were provided in the earnings release.
It isn’t easy to find a niche in the financial industry, which is crowded with companies offering every imaginable type of service to clients. Yet Chime seems to be achieving that, as the Chime Card is clearly a hit among the company’s target demographic of clientele underserved by mainstream banks. This growth stock is definitely worth considering as a buy.
ROCHESTER, N.Y. — Student athletes are now earning real money thanks to name, image, likeness deals — but with that opportunity comes the need for financial preparation.
Noah Collins Howard and Dayshawn Preston are two high school juniors with Division I offers on the table. Both are chasing their dreams on the field, and both are navigating something brand new off of it — their finances.
“When it comes to NIL, some people just want the money, and they just spend it immediately. Well, you’ve got to know how to take care of your money. And again, you need to know how to grow it because you don’t want to just spend it,” said Collins Howard.
What You Need To Know
High school athletes with Division I prospects are learning to manage NIL money before they even reach college
Glory2Glory Sports Agency and Advantage Federal Credit Union have partnered to give young athletes access to financial literacy tools and credit-building resources
Financial experts warn that starting money habits early is key to long-term stability for student athletes entering the NIL era
Preston said the experience has already been eye-opening.
“It’s very important. Especially my first time having my own card and bank account — so that’s super exciting,” Preston said.
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For many young athletes, the money comes before the knowledge. That’s where Glory2Glory Sports Agency in Rochester comes in — helping athletes prepare for life outside of sports.
“College sports is now pro sports. These kids are going from one extreme to the other financially, and it’s important for them to have the tools necessary to navigate that massive shift,” said Antoine Hyman, CEO of Glory2Glory Sports Agency.
Through their Students for Change program, athletes get access to student checking accounts, financial literacy courses and credit-building tools — all through a partnership with Advantage Federal Credit Union.
“It’s never too early to start. We have youth accounts, student checking accounts — they were all designed specifically for students and the youth,” said Diane Miller, VP of marketing and PR at Advantage Federal Credit Union.
The goal goes beyond what’s in their pocket today. It’s about building habits that will protect them for life.
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“If you don’t start young, you’re always catching up. The younger you start them, the better off they’re going to be on that financial path,” added Nihada Donohew, executive vice president of Advantage Federal Credit Union.
For these athletes, having the right support system makes all the difference.
“It’s really great to have a support system around you. Help you get local deals with the local shops,” Preston added.
Collins-Howard said the program has given him a broader perspective beyond just the game.
“It gives me a better understanding of how to take care of myself and prepare myself for the future of giving back to the community,” Collins-Howard said.
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“These high school kids need someone to legitimately advocate their skills, their character and help them pick the right space. Everything has changed now,” Hyman added.
NIL opened the door. Programs like this one make sure these athletes walk through it — with a plan.
