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DNC Fund-raising Flap

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DNC Planned For Potential Fines

Democrats budgeted $1 million for possible FEC fines that could result from campaign


WASHINGTON (AllPolitics, April 3) -- The Democratic National Committee (DNC) built a $1 million cushion into its 1996 budget to cover potential Federal Election Commission (FEC) fines incurred over the campaign, according to papers released Wednesday by the White House.

The five-inch stack of documents made public were in the possession of former Deputy White House Chief of Staff Harold Ickes, and portray a Democratic Party anxious to raise big money for President Bill Clinton's re-election run.


The DNC's aggressive fund-raising tactics led the party to set aside money to pay any fines for campaign law violations that could possibly be imposed by the federal election agency.

In an Oct. 7, 1996 memo, aide Phil Caplan wrote that the Clinton-Gore campaign had budgeted "$1M for potential fines." The memo was stamped "The President Has Seen," and Clinton wrote in the margin next to that paragraph, "Ugh."

Clinton-Gore Campaign spokesman Bob Neuman said that campaign lawyers don't "recollect" or "recall" a specific amount of money being designated for potential fines.


It is typical for a presidential campaign to be asked to repay some federal matching money that was used improperly. Repayments usually range from $300,000 to $600,000.

The revelations over White House campaign fund-raising tactics are expected to continue later this week as more documents, listing the donors who flew on Air Force One, are expected to be released by the White House soon.

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