'The most expensive election in US history'

The cost of the US presidential election could break the billion-dollar barrier for the first time in history this year, experts said.

Michael Toner, chairman of the Federal Election Commission (FEC) which governs the financing of federal elections, said: “We’re entering a brave new world of presidential fundraising.”

He told the Washington Post that the 2008 race would be “the most expensive election in American history” and a “one billion-dollar election”.

The cost of the last presidential campaign in 2004, considered a peak for its time, was $693m (€512m).

Just two decades ago, the race which saw Republican George HW Bush succeed Ronald Reagan at the White House cost $59m (€43m).

In 2008, the figures are staggering.

Democratic presidential nominee Barack Obama has frequently broken fundraising records, bringing in $66m (€48m) in August 2008 alone, taking his total to more than $454m (€335m) by September 20.

Once all the money spent by the candidates, their parties’ national committees, political action committees, so-called 527 groups created to influence the election, labour unions and trade groups are taken into consideration, it will be a $3bn (€2.2bn) election, the US business magazine Fortune predicted.

Based on FEC data up to September 20, Mr Obama has raised $454.1m (€335m), compared with Republican John McCain’s $230m (€170m).

The advertising figures are based on data provided by TNS Media Intelligence/Campaign Analysis Media Group (CMAG) to CNN and covers the period from January 1, 2007 to September 30, 2008.

Some of the difference between the two candidates can be explained by their stance on public financing.

In June, Mr Obama rejected public financing and its spending limits in favour of private fundraising, despite initial suggestions that he was considering accepting it if his Republican rival did too.

But Mr McCain, whose campaign was virtually written off following weeks of poor fundraising in the summer of last year, accepted money from the public fund, which is created by taxpayers who tick an optional three-dollar presidential campaign fund donation box on their tax returns.

By rejecting public financing, Mr Obama was free to legally raise and spend as much campaign money as he wanted.

Both candidates were allowed to raise and spend as much money as they wished until they were actually nominated by their party.

On other issues of campaign finance, Mr McCain accepts campaign contributions from lobbyists and applied for, but then turned down, federal matching funds for the primaries.

Mr Obama turned down money from federal lobbyists and has instructed the Democratic National Committee to do the same for its joint victory fund. But he does accept money from state lobbyists and from family members of federal lobbyists.