July 29, 2025 — White House Press Secretary Karoline Leavitt is grappling with significant financial fallout from her unsuccessful 2022 congressional campaign for New Hampshire’s 1st Congressional District.
Federal Election Commission (FEC) filings reveal that her campaign committee, Karoline for Congress, owes $326,370.50 to over 100 creditors, including individual donors, businesses, and political consulting firms.
The debt, much of which stems from excessive and illegal campaign contributions, has sparked ethical questions about Leavitt’s financial transparency and her current role in the Trump administration.
Leavitt’s campaign has been under scrutiny since 2022, when the watchdog group End Citizens United filed a complaint with the FEC, alleging that Karoline for Congress illegally accepted contributions exceeding federal limits.
Federal campaign finance law caps individual donations at $2,900 per election, with a 60-day window to refund or redesignate excess contributions.
Leavitt’s campaign, however, failed to report or return approximately $200,000 in excessive donations for over two years, only amending 17 campaign finance reports in January 2025 to disclose the violations.
According to FEC filings, the campaign’s total debt includes $46,748 owed to Axiom Strategies, a Missouri-based consulting firm, $41,000 to Remington Research Group for polling, and nearly $13,000 to Fundraising Inc.
Additionally, approximately $38,000 is owed to nearly 30 businesses for contributions that violate federal rules prohibiting direct corporate donations.
Notable individual donors awaiting refunds include former New Hampshire Governor Craig Benson and the late New Hampshire Senate Majority Leader Robert Clegg Jr.
The campaign reported no cash on hand as of June 30, 2025, and raised no funds in April, May, or June to address the debt. This lack of financial resources has left creditors with little recourse, as campaigns that go broke after losing elections have limited options for settling debts.
Refunds to Family and Limited RepaymentsIn April 2025, Karoline for Congress refunded approximately $12,000 to five of its roughly 100 creditors, including $2,900 each to Leavitt’s parents, Bob and Erin Leavitt.
Other refunds included $2,900 to EMJ Holdings, an entity with no listed address or record of prior donations, and $100 to a former campaign volunteer.
These selective repayments have raised eyebrows, particularly as the campaign continues to owe significant sums to other donors and vendors.
A source close to Leavitt, speaking anonymously to OpenSecrets, emphasized that Leavitt personally owes no money, as the debt is tied to the campaign committee.
The source also noted that Karoline for Congress is “working with the FEC through the audit and that process is ongoing,” attributing the outstanding debt to the audit process.
However, the campaign’s treasurer, Rob Phillips of AxCapital, did not respond to inquiries, and a spokesperson for Axiom Strategies, Erin Perrine, dismissed further questions as “clickbait.”
Ethical and Political Implications
Leavitt’s campaign debt has raised concerns about potential conflicts of interest, given her prominent role as White House Press Secretary.
Ethics experts interviewed by New Hampshire Public Radio suggested that fundraising to retire the debt could pose challenges, as soliciting donations while serving in a high-profile administration role might blur ethical lines.
The FEC’s ability to enforce penalties is currently limited, as the agency lacks the minimum four commissioners required to initiate investigations.
President Donald Trump has yet to nominate new commissioners, despite recommendations from congressional leaders, leaving cases like Leavitt’s in limbo.
Tiffany Muller, president of End Citizens United, told OpenSecrets, “Cases like this send a clear message: If you break campaign finance laws, nothing will happen to you.”
Karoline Leavitt ran for Congress in 2022, leveraging her experience as an assistant press secretary in the first Trump administration and as a communications director for Rep. Elise Stefanik (R-NY).
Despite raising $100,000 within three days of announcing her candidacy, Leavitt lost to incumbent Rep. Chris Pappas (D-NH) by about 8 percentage points.
Her campaign focused on pro-Trump policies, including lowering taxes, supporting school choice, and opposing vaccine mandates.
Leavitt’s rapid rise in politics, from a White House intern to Trump’s national press secretary in 2024 and now White House Press Secretary, has been marked by her steadfast loyalty to Trump.
However, the unresolved debt from her congressional bid continues to cast a shadow over her political career.
With no funds to retire the debt and an ongoing FEC audit, Karoline for Congress faces significant hurdles in resolving its financial obligations.
While Leavitt has distanced herself from personal responsibility, the situation underscores broader issues in campaign finance enforcement.
As Leavitt navigates her role in the Trump administration, the unresolved debt and ethical questions may continue to draw scrutiny.
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