COLUMBIA, South Carolina (CNN) -- Rick Perry has stopped paying his campaign staff in the key early states of Iowa, New Hampshire and South Carolina as his campaign struggles to generate momentum -- and cash -- in the first months of his campaign.
The campaign's South Carolina state chairman Katon Dawson said Monday that operatives working for the campaign would no longer be paid for the time being, while Republican officials in Iowa and New Hampshire told CNN that campaign workers in both states also were notified they would not be paid. They were encouraged to stay on as volunteers, if they were able, to help Perry get through a lean summer.
In his second bid for the presidency, Perry has set his sights on a strong showing in the Iowa caucuses. He has spent considerable time in the state over the last three years and has a network of supporters, but his fundraising challenge underscores the difficult road ahead for a candidate in such a crowded Republican field.
The Super PACs supporting Perry's bid can foot the bill for advertising and even get-out-the-vote efforts, but are prohibited from coordinating with the campaign. And campaign staffers cannot work for the Super PAC without taking a 120-day cooling off period, under federal election law.
"Everybody that's working last week is on board this week," said Dawson, the South Carolina chairman. "The financial questions will be up later. Right now, we're working in a volunteer capacity, proud to be doing it. Our field staff is working today, I just met with them an hour ago."
Dawson, who has worked in South Carolina politics for 40 years he says, and two political consultants in the state have been moved to a volunteer basis, which Dawson says they are "happy to do so."
Perry campaign manager Jeff Miller said in a statement that "as the campaign moves along, tough decisions have to be made in respect to both monetary and time related resources."
"Governor Perry remains committed to competing in the early states and will continue to have a strong presence in Iowa, New Hampshire and South Carolina. The Gov is also looking forward to his trips to South Carolina this Thursday and to Iowa next week," Miller said.
The Washington Post and CBS News also reported late Monday that the Perry campaign has stopped paying staffers working on the national campaign.