Obama Rejects Public Financing

- Announcement made on June 19, 2008
- Had pledged to meet with John McCain to discuss financing
- Lawyers from the two parties met, reportedly with no resultThe New York Times: Obama Forgoes Public Funds in First for Major Candidate (June 19, 2008)
- First candidate to opt out of financing system since the Watergate scandalBBC News: Obama shuns public campaign funds (June 19, 2008)
- Public financing system would give each candidate $84.1 million from the U.S. Treasury in 2008
- Restricts candidates to spending only this amount
- Candidate's party can raise additional funds to use in parallel
- Recently, Republican Party has outraised the Democratic PartyThe New York Times: Obama Forgoes Public Funds in First for Major Candidate (June 19, 2008)
- Barack Obama raised $95 million in February and MarchThe New York Times: Obama Forgoes Public Funds in First for Major Candidate (June 19, 2008)
- Obama will face no restriction on the amount he can raise for his campaignCNN: Obama opts out of public financing system (June 19, 2008)

In a video posted on his website on June 19, 2008, Barack Obama, presumptive candidate of the Democratic Party in the 2008 presidential election, announced he would not participate in the public financing system currently in place for presidential candidates.The Associated Press: Obama's statements on public financing (June 19, 2008) The system, which Obama called "broken," would give each candidate $84.1 million but would bar them from accepting or spending more than this amount.The New York Times: Obama Forgoes Public Funds in First for Major Candidate (June 19, 2008)
Campaign Finance Rules
1. A grant is given to the presidential nominee from each major party
2. Grant is $20 million plus the cost-of-living adjustment (COLA)
3. 2008 grant with COLA: $84.1 million
4. Eligibility requires spending to be limited to value of grant plus COLA
5. Bars candidates from accepting private donations
6. Private donations are allowed to cover legal and accounting expenses related to public funding compliance
7. These funds are not counted towards the spending limit
8. Candidates are allowed to spend $50,000 in personal funds
9. This spending also does not count towards the limit
10. Independent expenditures, those that do not contribute directly to an official campaign, can be made to support or oppose a candidate at anytimeFederal Election Comission: Public Funding of Presidential Elections (February 2008)
Quotes
"The public financing of presidential elections as it exists today is broken, and we face opponents who’ve become masters at gaming this broken system...John McCain’s campaign and the Republican National Committee are fueled by contributions from Washington lobbyists and special interest PACs. And we’ve already seen that he’s not going to stop the smears and attacks from his allies running so-called 527 groups, who will spend millions and millions of dollars in unlimited donations."The New York Times: Obama Forgoes Public Funds in First for Major Candidate (June 19, 2008)—Barack Obama, The New York Times
"The true test of a candidate for President is whether he will stand on principle and keep his word to the American people. Barack Obama has failed that test today, and his reversal of his promise to participate in the public finance system undermines his call for a new type of politics."The New York Times: Obama Forgoes Public Funds in First for Major Candidate (June 19, 2008)—Jill Hazelbaker, John McCain Campaign Communications Director, The New York Times
Previous Statement
Obama's critics refer to a "pledge" he made to accept public financing. The candidate made the following statement in September 2007:
- "If I am the Democratic nominee, I will aggressively pursue an agreement with the Republican nominee to preserve a publicly financed general election."WashingtonPost.com: The Obama "Pledge"