Out-of-State Contributions Provide Non-Incumbent House Candidates with a Competitive Edge

Abstract

Out-of-state donors’ contributions represent a growing share of fundraising receipts for House candidates. This raises the question of whether out-of-state contributions simply represent more money flowing to the campaigns’ coffers or whether these monies could be worth more than their outright cash value. Using campaign finance data from the U.S. Federal Election Commission 2010-2018, I examine both the fundraising and electoral impacts of non-incumbent House candidates’ receipt of these funds using structural equation modeling, a matching analysis, and a regression analysis. I uncover evidence that out-of-state contributions are an indication of the candidate’s integration into the extended party network (EPN) finding they are closely tied to interest group support. Out-of-state contributions are also found to have a positive impact on non-incumbent House candidates’ competitiveness, which likely stems from the broader support of the EPN.