Senate hopeful's 'treading water' narrative crumbles under $500K campaign payouts to family

Independent Senate candidate Dan Osborn repeatedly said his family is "treading water" financially because of rising grocery and gas prices last week, but federal campaign finance records show his campaign has paid more than $500,000 to members of his family since launching his Senate bid.

Speaking at a Capitol Hill press conference on Sept. 24, Osborn said, "My family, we're treading water here, and it feels like every day it's hard to keep your head above water" because of the economy and rising grocery and gas prices. 

Later that day, during an NBC News interview, he made nearly identical remarks, again describing his family as "treading water."

Americans for Public Trust, a government ethics watchdog that has previously scrutinized Osborn's campaign spending, estimates Osborn and members of his family received nearly $480,000 from his campaign and affiliated PACs through the first quarter of 2026. The organization told Fox News Digital that figure does not include additional campaign spending disclosed in Osborn's second-quarter filing, which was filed in July. Fox News Digital's review of that filing found additional payments to family members that pushed the total above $500,000.

NEBRASKA SENATE CANDIDATE SEEMS TO CONFIRM AUDIO CLAIMING TRUMP SUPPORTERS' LIVES 'SUCK SO F---ING BAD'

Dan Osborn speaks during a debate amid his run for a U.S. Senate seat in Nebraska. (Omaha World-Herald via Getty Images)

The largest share of those payments went to Osborn's wife, Megan Osborn, who has worked for the campaign since its launch. Campaign finance records also show payments to the candidate's daughter, Georgia, who Osborn has described publicly as a part-time dancer who still needs help paying her bills. His daughter has been paid by the campaign for work including event staffing and campaign activities, alongside other relatives and entities tied to his family.

Amid the scrutiny, Osborn's wife stepped away from consulting firms she had a stake in, which were receiving thousands of dollars from Osborn's campaign coffers, including from his 2024 war chest, even though that campaign was defunct.

"It’s rich for Osborn to be co-opting the real financial pain of Nebraskans when he and his family have been profiting from his campaign since it launched," Americans for Public Trust Executive Director Caitlin Sutherland told Fox News Digital. "He was all too comfortable using his campaign to enrich his immediate and extended family and only hastily restructured when he was caught. Nebraskans know better than to fall for this type of self-serving behavior."

DEM SENATOR FACES DOJ PROBE AFTER ALLEGATIONS OF SPENDING CAMPAIGN FUNDS ON LUXURY LIFESTYLE

(Photo by Win McNamee/Getty Images)

Earlier this year, Osborn and his wife announced they were restructuring how she was compensated by the campaign after Americans for Public Trust filed a complaint with the Federal Election Commission alleging Osborn had steered campaign funds to relatives through a network of consulting firms and affiliated political action committees. The complaint alleged the payments violated federal campaign finance law, while the Osborn campaign rejected the allegations and argued the payments were for legitimate campaign work.

While paying family members is not illegal, it must be for bona-fide campaign services. Critics have challenged the political expertise and background of Osborn's wife and other family members. 

As part of the restructuring, Osborn's wife stepped away from two consulting firms that were receiving campaign payments—including Independent Campaigns LLC, in which she held a one-third ownership stake—and instead became the campaign's full-time operations manager with a monthly salary.

Osborn told the Omaha World-Herald at the time that his wife had been "instrumental" to the campaign and said he would not let political opponents dictate who ran it.

Independent Senate candidate Dan Osborn chats with attendees after speaking during his campaign stop at the Handlebend coffeshop in O'Neill, Neb., on Monday, October 14, 2024. Osborn is running againt Sen. Deb Fischer, R-Neb. (Bill Clark/CQ-Roll Call, Inc via Getty Images) (Bill Clark/CQ-Roll Call, Inc via Getty Images)

CLICK HERE TO DOWNLOAD THE FOX NEWS APP

But Sutherland argued the restructuring did not resolve the broader questions raised in the complaint.

"Dan Osborn only restructured how he pays his wife after we filed a complaint with the FEC that he was running afoul of campaign finance laws," Sutherland told Fox News Digital at the time. "However, questions still remain regarding his payments to his daughter, his brother-in-law, and two sisters-in-law, and his control over two federal PACs. Rest assured, Osborn may have changed tactics, but he isn't off the hook in his attempt to funnel campaign cash to his entire family."

Alec Schemmel is a Politics Reporter for Fox News Digital who is originally from Charlotte, North Carolina but now resides in the Washington D.C.-Baltimore Metro Area.