July 15, 1999
Web posted at: 6:00 p.m. EDT (2200 GMT)

WATERLOO, Iowa (CNN, July 15) -- Saying he wanted to "enjoy as much flexibility as possible in both Iowa and New Hampshire," Texas Gov. George W. Bush announced Thursday he will not accept federal matching funds for his presidential primary campaign.

The decision means Bush passes up about $16.5 million in taxpayer-funded campaign money but it also frees him from restrictions spelling out how much money a candidate can spend in the primary season. (80k wav file)

The decision, while not entirely unexpected, again demonstrates the overwhelming fund-raising prowess of the GOP front-runner's campaign.

Bush reported Thursday he had raised a record $37 million for his Republican presidential campaign in the first six months of the year -- slightly higher than his earlier estimate at the beginning of the month -- and had more than $30 million in the bank.

Traditionally, candidates accept money from the federal treasury, which "matches" a percentage of their own fund-raising. They then agree to abide by state-by-state spending caps.

The campaign has estimated Bush would need to raise $55 million on his own to make it financially practical to forgo the matching funds. But with his staggering fund-raising total, he is thought to be well within striking distance of that goal.

The candidates were required to file their second quarter reports with the Federal Election Commission by Thursday.

One Bush rival for the GOP nomination, multimillionaire Steve Forbes, is able to sidestep the federal match and the accompanying spending caps by financing his own campaign. Bush is now free to compete with Forbes dollar-for-dollar in each state.

During the 1996 primary season, Forbes also did not take matching funds. Unfettered by spending limits, he poured money into the Iowa and New Hampshire airwaves, battering front-runner Bob Dole. Dole was unable to respond in kind because he took federal matching money and agreed to spending limits. (152k wav file)

"Competing against somebody in the primary who can write one check, I'm mindful of what happened in 1996 and I'm not going to let it happen to me," Bush told reporters in an impromptu news conference alongside his campaign bus.

The period between the primaries and conventions -- before general election matching funds are distributed -- are also a concern for Bush. By spring 1996, Dole was on his way to the nomination, but had reached his primary season spending caps. He spent the summer campaigning on a shoe-string while the unchallenged Clinton-Gore re-election campaign was flush with primary cash.

Campaign finance reform advocates were quick to criticize the Texas governor's move Thursday.

Common Cause, a government watchdog group issued a scathing reaction predicting "the fund-raising -- and potential corruption -- will be out of control" in the 2000 election cycle as a result of Bush's decision.

Common Cause zeroed in on a group of Bush fund-raisers who have promised to help raise $100,000 a piece, calling them "the new class of political power brokers whose status and access are determined by the big money they bring to the campaign."

Sen. John McCain (R-Arizona), a rival for the GOP nomination and longtime advocate of campaign finance reform, agreed. "By refusing to abide by the accepted guidelines, Governor Bush may be unintentionally adding to the already widespread cynicism of the American people regarding the influence of special interest money in politics," McCain said in a statement.

On the Democratic side, Vice President Al Gore has said he would accept the federal matching money, which will limit him to a total of $33.5 million to spend during the primary season. (140k wav file)

Gore raised $18 million through the second quarter of 1999 -- just half of Bush's total haul. His only Democratic challenger, former Sen. Bill Bradley, raised $11.5 million.

CNN's Candy Crowley contributed to this report.

Thursday, July 15, 1999

• Senate approves GOP's version of 'patients' bill of rights'
• Poll: Public slightly favors Democrats in health care debate
• Senate rejects patient lawsuit proposal
• Bush to forgo federal matching funds
• Reno says China campaign funds probe 'was not impaired'
• House gives itself pay raise
• Clinton discusses gun control with Colorado students
• House panel approves GOP tax cut package
• Prescription sought for perfect health care system
• Congress sends law by e-mail to the White House
• Victoria Buckley, top black female Republican, dies at 51
• House panel blocks part of Energy Department budget
• Clinton wants stem cell research without changing law
• White House hopefuls report new fund-raising numbers
• Folksy Gore leaves vice presidential props at home
• Bush collects money, endorsements on trip to Virginia, Maryland
• House upholds Clinton Administration mining restrictions
• Analysis: Senate's new independent may signal Republican split
• Mrs. Clinton listens but doesn't have all the answers
• Group protests Hadassah award to Hillary Clinton

ARCHIVES