Trump appears to have a misunderstanding of campaign-finance law, and may have inadvertently admitted to breaking the law as a result

“Later on I knew,” Trump said. “Later on. But you have to understand, Ainsley, what he did — and they weren’t taken out of campaign finance. That’s a big thing. That’s a much bigger thing. Did they come out of the campaign? They came from me. I tweeted about it. I don’t know if you know, but I tweeted about the payments. But they didn’t come out of the campaign. In fact, my first question when I heard about it was, ‘Did they come out of the campaign?’ Because that could be a little dicey. They didn’t come out of the campaign, and that’s big. It’s not even a campaign violation.”

.. Cohen explained that he committed the campaign-finance violations “at the direction of the candidate” and with the “purpose of influencing the election.”

.. Based on Trump’s interview on Fox, he seems to think that a campaign-finance violation would have occurred if campaign funds were used to pay off Daniels and McDougal, rather than his personal cash, which was used to reimburse Cohen for the initial Daniels payment. The reverse of this is true, as The Huffington Post first reported.

.. If Trump had routed money through his campaign to pay off women, it would be legal. Campaigns can spend unlimited amounts of money. The problem would have been that if Trump did use his campaign to pay off any women, it would have defeated the purpose of making the payment, which was to ensure silence. Such an expenditure would have had to be reported to the Federal Election Commission and publicly disclosed.

.. Trump’s best defense is one that Cohen claimed was true earlier this year, and one that Trump’s personal attorney, Rudy Giuliani, has also latched onto: That the arrangement was made not to boost Trump’s candidacy but to shield his family, particularly his wife, Melania Trump, from the embarrassing information. That argument was what helped former Democratic Sen. John Edwards of North Carolina in a similar case.

But Cohen’s testimony, backed up by what the government says is evidence that corroborates it, hurts that narrative.