(Bloomberg) -- President Joe Biden faces a number of obstacles on the road to reelection. Money won’t likely be one of them.

Groups allied with Biden have already committed to spending more than $700 million to help him beat Donald Trump in the 2024 election, according to a political strategist familiar with national fundraising. That’s in addition to the $130 million his campaign reported having on hand at the start of February.

Trump’s financial situation, by comparison, is starting to show cracks. His campaign spent more than it raised in January and allied political action committees are spending millions on his legal defense that would otherwise go to reelection efforts. The Republican National Committee’s fundraising also lags behind its Democratic counterpart.

On top of that, Trump’s personal finances may be strained after court orders to pay a combined $540 million in damages from both a civil fraud suit and a defamation case.

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Money could be a difference-maker in the 2024 election where margins are expected to be incredibly tight. Spending this cycle is on track to surpass the $14.4 billion record set in 2020, according to OpenSecrets. In 2020, Biden was the first candidate in US history to raise more than $1 billion, compared to the $774 million Trump raised. Trump faced a cash crunch in the final weeks leading up to the election that year, forcing him to slash planned ad spending in key states.

Money Wars

A direct comparison between the complicated network of entities supporting Biden and Trump is difficult to compute, because some organizations, like the GOP-aligned National Rifle Association and progressive group MoveOn, don’t have to publicly report their fundraising until after the election. Various indicators suggest Democrats are way ahead. 

Biden has been able to stockpile cash, while Trump spends millions in a contested primary and his political operation shells out several million per month on legal costs associated with his four criminal indictments. 

That’s helped Biden build a large lead over Trump in the money race, though there’s no guarantee Republicans won’t catch up once Trump is officially the nominee. Super PACs, which rely on a small group of deep-pocketed donors, can raise vast amounts of money quickly. 

The NRA said it will be actively involved in 2024, but won’t share spending plans in advance. “The influence of the NRA and our members will be decisively felt this Election Day,” said Randy Kozuch, executive director of the NRA’s Institute for Legislative Action.

Super PACs and other groups supporting Biden raised $282 million last year, according to the strategist, who requested anonymity to share non-public data. In addition, Biden raised $240 million for his campaign, the Democratic National Committee and state parties, according to Federal Election Commission records.

“Biden has amassed an impressive war chest that includes early and united support of the party and issue groups, and an enviable fundraising apparatus,” said Jim Messina, who ran former President Barack Obama’s 2012 reelection. “Both will be key to reaching and turning out the constituencies Biden needs to win in November.”

The broader Democratic ecosystem, which includes Biden’s campaign, the DNC and outside super PACs, had $175 million cash in the bank at the start of this year, according to federal filings. That’s roughly double the $89 million that Trump’s committees, the national Republican party and outside groups that have supported him had.

“We’re proud of our grassroots-powered campaign, and the work Democrats are doing across the country to reelect the President in the most important election of our lifetime,” said Seth Schuster, a spokesman for the Biden campaign.

Rahna Epting, MoveOn Political Action’s executive director, said their “organizing is starting earlier than ever before to keep the anti-Trump coalition that defeated him four years ago focused on the stakes this November.” The group plans to spend $32 million to support Biden. 

Trump spokeswoman Karoline Leavitt said the GOP frontrunner “continues to raise millions more from small dollar donors than all his primary opponents and Joe Biden, which serves as a powerful testament to his unprecedented and unwavering support from the American people.”

Advertising Cash

The $700 million pledged by Biden-allied groups will help Democrats invest in advertising and other messaging efforts to help buoy the president’s flagging poll numbers amid concerns about his handling of the economy and immigration. He trails Trump in seven of the swing states that will likely decide the presidential election, according to the latest Bloomberg News/Morning Consult poll.

One of the biggest sources of Democratic funds is Future Forward USA Action, a nonprofit that raised $183 million in 2023 according to the strategist. Future Forward has pledged to spent $250 million on television and digital ads in battleground states for Biden. The group’s super PAC arm has already booked more than $130 million in television time after the Democratic National Convention in August, according to AdImpact. 

By contrast, no Republican group, including the RNC, the Trump campaign, his allied super PAC Make America Great Again Inc., have booked any ad time after April 1. 

American Bridge 21st Century is launching a $140 million campaign in the spring focusing on women and working class voters using research conducted in swing states. Unite the Country, another super PAC, is spending $40 million on ads about Trump’s various legal issues, including his charges related to the Jan. 6, 2021 riot at the US Capitol. Jon Soltz, the chairman of VoteVets, which is planning to spend $45 million to boost Biden, said they are planning outreach to veterans and other voters in battleground areas.

(Updates with details about American Bridge 21st Century plans)

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