On democracy, dollars, and political influence

The United States is an example of how money can wield political influence. During the 2020 election cycle, an estimated $15 billion was spent on federal elections, including presidential and congressional races. This amount was nearly double that of the 2016 elections. The costs per election cycle continue to rise, driven by the growth of super PACs (political action committees), social media campaigns, and ongoing competition between parties.

The majority of money in the US is spent on advertisements on television, radio, and online platforms. In 2020, more than $5 billion was allocated to political advertising alone. Candidates also invest in staff, travel budgets, and event organization, further driving up overall expenditures.

Where does the money come from?

In the United States, political donations come from a wide range of sources, including:

• Individual donors: Citizens contribute through platforms like ActBlue or WinRed. In 2020, small donations under $200 accounted for over $3 billion in contributions.
• Super PACs: Following the Citizens United v. FEC ruling, super PACs can collect and spend unlimited amounts. Large donors play a critical role here. In 2024, prominent contributions included Timothy Mellon ($172 million), Miriam Adelson ($137 million), and Elon Musk ($133 million) supporting Donald Trump. Meanwhile, Michael Bloomberg contributed $43 million to the Harris campaign.
• Corporations and interest groups: While direct donations from corporations are prohibited, they can contribute through PACs. This also applies to Dutch companies with operations in the US.

Trends in political donations

Political donations are increasing, both in total amounts and in the number of small donors. Technology plays a key role in this. Various platforms make it easy to donate small amounts with just a few clicks, enabling millions of Americans to contribute to campaign financing. At the same time, the influence of major donors remains significant.

Campaign financing in the Netherlands: modest yet relevant

The costs of campaigns

In the Netherlands, political campaign costs are significantly lower than the billions spent in the United States. However, finances are becoming increasingly important. In 2023, political parties in the Netherlands had approximately €10 million in campaign funds available. Of this, about €1.7 million was spent on online campaigns, with the PVV spending €700 and NSC nothing. Exact data and amounts are not consistently tracked in the Netherlands, though some parties disclose their budgets. Additionally, the Ministry of the Interior publishes an overview of debts held by political parties and their affiliated organizations.

Sources of income

Political parties in the Netherlands receive funding from several sources, including:

• Government subsidies: The Dutch state provides subsidies to political parties based on the number of seats and members. In 2021, parties received a total of over €20 million in subsidies.
• Membership contributions: Many parties rely on contributions from their members. Although membership numbers have declined over the decades, this remains a vital source of income. For example, SP representatives at various levels are required to contribute part of their salaries to the party fund.
• Donations: Parties can accept donations from individuals and companies, but strict rules apply, including disclosure of major donors.

Examples of large donations

In the Netherlands, large donations are rare but tend to draw attention, such as:

• In 2021, an entrepreneur pledged over €1 million to the CDA (conditionally). Another donated over €1.3 million to D66 and the Party for the Animals.
• The PVV received funding in the past from foreign donors, including David Horowitz in the United States, whose organization presented the Annie Taylor Award to the PVV leader on November 24, 2024.

Although companies can donate, this rarely happens, likely due to the media attention it generates. Donations mainly come from private individuals.

Comparison between the US and the Netherlands: costs and transparency

Scale and costs

The most striking difference between the United States and the Netherlands is the scale of campaign financing. While tens of billions of dollars circulate in a single US election cycle, costs in the Netherlands are limited to a few million euros. This difference can be explained by factors such as the size of the electoral market, the impact of advertising, the role of television, and the political culture.

Sources of funding

In the US, private capital plays a dominant role, with influential billionaires and corporations supporting campaigns via super PACs. In the Netherlands, public subsidies and membership contributions dominate, with limited influence from large donors.

Regulation and transparency

The Netherlands has stricter rules for campaign financing. Specific donations must be disclosed, while in the US, super PACs can spend millions without full transparency about the source of the funds. It should be noted, however, that “transparency” is interpreted differently by various Dutch parties.

Conclusion

The United States and the Netherlands represent two extremes in the world of campaign financing and politics. The US illustrates how money can play a central role in elections (highlighted on platforms like OpenSecrets.org) and how it can increase the influence of wealthy elites. The Netherlands opts for a more moderate model, with greater reliance on public funds and stricter regulations. The three main differences—scale, sources of funding, and transparency—reflect the contrasting approaches to political and campaign financing. Both systems have their advantages and challenges, illustrating how money can (or cannot) play a role in politics, which in the Netherlands is often seen as separate from political lobbying and influence.