In a bold early move as pontiff, Pope Leo XIV is quietly working to rekindle financial ties with conservative American Catholics and well-connected MAGA-aligned donors to address the Vatican’s growing fiscal crisis.

According to the Daily Mail, Pope Leo’s outreach marks a shift from his predecessor’s approach, aiming to regain key U.S. support and fix widening budget gaps worsened by controversies and shrinking donations.

The new pontiff’s strategy follows several turbulent financial years for the Catholic Church, culminating in an €83 million deficit in 2024—more than double previous shortfalls, according to internal data obtained by Reuters. These financial difficulties have been compounded by a steep decline in donations from the United States, which was historically the Vatican’s main source of foreign funding.

Many prominent American contributors had reduced or withdrawn funding under Pope Francis, due to growing frustration with his progressive teachings and a series of scandals that undermined trust. One of the most high-profile controversies involved a failed Vatican investment in London real estate, which contributed to donor skepticism.

John Yep, president of Catholics for Catholics, directly links the drop in donations to that loss of trust under Pope Francis. “That decline followed widespread discontent with Pope Francis’ more liberal teachings and a string of corruption scandals,” Yep told Politico.

Pope Leo’s Traditionalist Appeal Gains Traction

As part of his financial turnaround, Pope Leo has made a concerted effort to project a more traditional image, resonating with conservative Catholics who had grown weary of the Vatican’s direction under Francis. He has reinstated several symbolic traditions, including returning to the historic papal residence and publicly embracing the Latin liturgy.

These gestures appear to be working. During the conclave that elected Leo, conservative donors reportedly saw him as someone with financial savvy and values more in line with their own. Politico reported that some major backers were “absolutely thrilled” about his election, according to a Catholic leader involved in donor discussions.

This enthusiasm was evident during “America Week,” a donor-focused event in Rome that coincided with Pope Leo’s rise. During the gathering, as much as €1 billion was reportedly pledged, but those funds were conditional on the selection of a pontiff aligned with more traditionalist principles.

Public Donation Campaigns Signal Financial Push

Following his election, Pope Leo authorized multiple initiatives aimed at boosting Vatican revenue. On June 26, Vatican News issued a renewed call encouraging contributions to Peter’s Pence, the Vatican’s annual fundraising fund, to coincide with the early weeks of his papacy.

Though large donations have not yet been confirmed, the pontiff’s financial team is optimistic that the revived connections with American donors will lead to meaningful contributions. These informal talks reportedly include longstanding supporters who had cut back on giving in recent years.

Internally, Leo’s administration has also approved bonuses for Vatican staff—a move likely aimed at boosting morale amid broader financial restructuring. In tandem, the Vatican has launched a comprehensive review of its real estate portfolio in hopes of identifying untapped asset value and fresh revenue streams.

Pope’s Moves Reflect Strategic Recalibration

Many observers view these steps as a clear indication that Pope Leo is prioritizing financial reform over other church debates during the early phase of his leadership. Tightening the Vatican’s budget and attracting new funds have emerged as immediate concerns within the Holy See’s administrative agenda.

Meanwhile, conservative Catholic networks in the United States—particularly those with ties to political movements such as MAGA—have become key players in this financial realignment. Their influence within Church funding circles appears to be growing as Vatican leadership shifts toward a more traditional tone.

But Pope Leo’s efforts come with risks, especially the perception that the Vatican is drawing too close to partisan politics. While the pope himself has not publicly commented on political affiliations, the alignment with MAGA-linked donors raises concerns about how such relationships could affect the Church’s global and nonpartisan image.

Balance of Tradition and Finances Ahead

Still, the financial pressures remain urgent, and Vatican officials appear willing to recalibrate their relationships to restore fiscal stability. The pope’s focus on fundraising and real estate reform underscores a broader strategy of maximizing existing resources while securing new backing.

At this stage, Vatican insiders stress that no major donations have yet been made, and pledge commitments from “America Week” remain informal. However, the renewed ties between the Holy See and American conservative networks may offer a crucial lifeline—if they can be solidified in the months ahead.

The Vatican’s ability to reverse its financial decline may hinge on whether Pope Leo can translate early donor enthusiasm into substantial and sustained financial support, even as he navigates the complex politics of traditional Catholicism and global diplomacy.