Candidate salary
A federal officeholder must not receive compensation as a candidate from campaign funds. However, a nonincumbent candidate may receive compensation from their principal campaign committee under certain conditions.
Compensation cap
The compensation must not exceed the lesser of 50% of the minimum annual salary paid to a Member of the U.S. House of Representatives (regardless of the office sought), and the average annual income that the candidate earned during the most recent five calendar years in which the candidate earned income prior to becoming a candidate. Compensation must be calculated at the daily rate, rounded to the nearest dollar.
Example 1:
Candidate A earned an average annual income of $35,000 in the most recent five calendar years in which Candidate A earned income prior to becoming a candidate, which means the daily rate is $96 for purposes of the compensation cap ($35,000/365, rounded to the nearest dollar). The minimum annual House Member salary is $174,000, which means the daily rate is $238 (($174,000 × 50%)/365, rounded to the nearest dollar). Therefore, Candidate A’s compensation is capped at $96 per day because the daily rate of the candidate’s 5-year average earned income is less than the daily rate of 50% of the minimum House Member salary ($96 < $238).
Example 2:
Candidate B earned an average annual income of $100,000 in the most recent five calendar years in which Candidate B earned income prior to becoming a candidate, which means the daily rate is $274 ($100,000/365). The minimum annual House Member salary is $174,000, which means the daily rate is $238 (($174,000 × 50%)/ 365), rounded to the nearest dollar. Therefore, Candidate B’s compensation is capped at $238 per day because the daily rate of 50% of the minimum House Member salary is less than the daily rate of Candidate B’s 5-year average earned income ($238 < $274).
Example 3:
Candidate C becomes a candidate in 2023. Candidate C earned income averaging $60,000 per year in 2021, 2019, 2018, 2017, and 2016, but did not earn any income in 2022 or 2020. Because Candidate C’s 5-year average earned income in the five most recent calendar years in which Candidate C earned income was $60,000, which is less than 50% of the minimum House Member salary of $174,000 in 2023, Candidate C would be entitled to receive $164 per day ($60,000/365) in compensation from campaign funds in 2023.
Outside earned income
The campaign committee must reduce the maximum amount of permissible candidate compensation from campaign funds by the amount of income earned by the candidate from outside sources after the candidate files a Statement of Candidacy.
Example 1:
Candidate A earned an annual average of $60,000 during the most recent five calendar years in which Candidate A earned income before becoming a candidate, and the minimum House Member salary is $174,000 per year. Because $60,000 is less than half of the minimum House Member salary ($87,000), Candidate A could receive up to $164/day ($60,000/ 365). But, if Candidate A earns $30,000 in income from outside sources after filing a Statement of Candidacy with the Commission, the maximum amount that Candidate A may receive as compensation from campaign funds must be reduced by $30,000, meaning that the total compensation paid to the candidate may not exceed $82/day (($60,000-$30,000)/365).
Example 2:
Candidate B earned an annual average of $100,000 during the most recent five calendar years in which Candidate B earned income before becoming a candidate, and the minimum annual House Member salary is $174,000 per year. Because half of the Minimum Officeholder Salary ($87,000) is less than $100,000, Candidate B could receive up to $238/day. But, if Candidate B earns $30,000 in income from outside sources while also receiving compensation from campaign funds, the maximum amount that Candidate B may receive as compensation from campaign funds must be reduced by $30,000, meaning that the total compensation paid to the candidate may not exceed $156/day (($87,000-$30,000)/365).
Eligibility period
Candidates may begin receiving compensation from campaign funds on the date they file their Statement of Candidacy. Candidates may continue to receive compensation from campaign funds up to 20 days after the candidate:
- Wins the general election, general election runoff, special election, or special election runoff; or
- Otherwise ceases to be a candidate, such as by losing an election or withdrawing from the race.
Tax records and debt settlement
Candidates who elect to receive compensation from their campaign committees must provide evidence of earned income from relevant years upon request from the Commission, and any such evidence must be retained for three years after the report disclosing the disbursement is filed.
Finally, if a campaign committee is seeking to settle debts for less than the full value, it may not pay compensation to the candidate or settle or satisfy a debt to a candidate for compensation.
