(This article was written by Maria Maalouf and appeared in Arab News. Financial challenges will hamper Trump's election campaign)
Former US President Donald Trump, the presumptive Republican nominee for November’s presidential election, faces a significant dilemma following civil judgments requiring him to pay more than $440 million. As Trump’s legal bills continue to swell — he is also the defendant in four separate criminal cases — his team is examining the options for paying the fines imposed on him amid questions about whether he will be forced to use other sources of financing, sell assets and real estate or even declare bankruptcy, an option six of his businesses have resorted to in the past.
One of Trump’s criminal cases is taking place in New York, where he is accused of making hush-money payments ahead of the 2016 election. The judge supervising the case has set March 25 as the trial’s start date, despite the objections of Trump’s lawyer, who sought to postpone it due to the former president’s competing legal and political obligations.
In Florida, Trump has been charged over his handling of classified documents upon leaving office, while in Washington and Georgia he is accused over his efforts to overturn his loss in the 2020 election.
Of course, the fines Trump has been hit with threaten the financial liquidity of the former president and billionaire businessman and raise questions about his political future, as well as the fate of his real estate empire.
There are a set of possible options that Trump may resort to when paying the fines, including resorting to the Republican National Committee. His efforts to change its leadership — with the appointment of a new chair to replace Ronna McDaniel and the move of Lara Trump, his son Eric’s wife, to co-chair — are considered by some to be an indication of the possibility of Trump asking the committee to help him pay the fines. However, this would pose a threat to his and the Republican Party’s chances in November’s elections.
If the funds requested in the New York civil fraud case are not paid, the ruling becomes effective immediately and the city can begin seizing Trump’s assets. The judge could order Trump to produce his bank account records or directly seize his proceeds. Even if an appeal is filed against the rulings, it is not common for judges to reduce the fines imposed. Trump also cannot delay paying the fines until after an appeal is heard, as he must place the money in the court’s account. If Trump truly cannot afford these provisions, he should declare bankruptcy.
Forbes magazine estimates the value of Trump’s New York real estate at $690 million. His total wealth is estimated at $2.6 billion, including $870 million-worth of golf clubs and resorts, $190 million in real estate outside of New York City and $640 million in “liquidity and personal assets.” So, there might be a possibility of him paying the fines from cash and personal assets.
One recent report suggested that Trump may resort to selling something, but it does not necessarily have to be real estate, as he could sell some investments or other assets.
He has denied any fraud and denounced the exploitation of the judiciary against a presidential candidate who is ahead in the opinion polls.
It is noteworthy that Trump was given a 30-day implementation period following the ruling on Feb. 16, during which he has to either deposit the fine into the court’s account or obtain a bond. Even if he had $440 million in cash, which is unclear, paying the penalties could wipe out his accounts. Another solution is a GoFundMe campaign that seeks to raise the sum that Trump owes. The campaign has already raised more than $1.3 million. It is being organized by Elena Cardone, a woman from Florida who describes herself as “a mother and an ardent supporter of American values.”
Finally, in comparison to what the Republican Party’s front-runner faces, the Biden campaign and the Democratic National Committee have the advantage of being able to raise money together, which their Republican competitors cannot do at this moment. President Joe Biden, the Democratic Party and their allies started the 2024 election year with a whopping $140 million in cash, including $46 million available to Biden’s presidential campaign and $21 million to the Democratic National Committee, in addition to $24 million from the Biden-aligned political action committee Future Forward.
Maria Maalouf is a Senior Media Fellow at the Gold Institute for International Strategy, a Washington D.C.-based foreign policy and defense think tank.
