Partial public financing systems are commonly used in US presidential primary elections, but less frequently in general elections. Candidates must meet certain criteria, including spending limits and raising $5,000 in each state. Minor party candidates may receive partial public funding based on previous election results or current popularity.
Partial public financing systems are campaign financing tools most frequently used during primary elections for President in the United States. Some systems of partial public financing exist for third party or party candidates competing in general elections, but these are used less frequently. Not all primary candidates depend on systems of partial public financing because they impose a spending limit on candidates. If a candidate is raising money well in excess of what he would receive through such a system, he is not required to use this method.
In the United States, in presidential primary elections, candidates must meet certain criteria before they can qualify to participate in partial public financing systems. They cannot spend more than $50,000 United States Dollars (USD), although this amount changes with inflation at times, of their own money. They are limited to spending amounts in each state they compete in, and must raise $5,000 USD in each state. This last provision is a bit confusing because individual contributions of more than $250 USD do not count toward this total. Therefore, a candidate would need 20 people to contribute $250 USD each in order to reach $5000 USD.
Candidates who participate in partial public financing systems have two types of limits imposed on their spending. Spending in each state is predetermined, and total spending is limited to a specific amount. For candidates who don’t raise a lot of money in primary contests, this may be a viable option to continue their candidacy; The government will match up to $250 USD of individual donor contributions, for each donor, until spending limits are met.
There are some cases in which partial public financing systems can be used in general elections. First, major candidates can opt for full public financing, where money raised from the general election fund essentially finances the entire campaign of a major party presidential candidate. Campaign and state-by-state spending limits are still enforced, with many opting out of public funding because they can raise more money and not limit their spending.
However, candidates who belong to a minor party or who are part of a newly formed party, may receive partial public funding based on how well their party did in the previous presidential election. Candidates belonging to a minor party must have received between 5% and 25% of the vote in the last presidential election to participate in partial systems of public financing, at least in the United States. If a candidate represents a new party, then he or she obviously does not have the full vote from the previous presidential election. To receive partial public funding, the candidate must receive at least 5% of the popular vote in the current election. When this occurs, the candidate is reimbursed provided spending limits have been agreed, but reimbursement does not occur until after the election has taken place.
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