Presidential candidate Tom Tancredo, a congressman from Colorado, became the second Republican to be approved for federal matching funds, the Federal Election Commission announced this week. Qualifying for the federal funds means that Tancredo will be eligible for about $2.5 million, which will be paid to the campaign early in 2008.

U.S. Sen. John McCain of Arizona was the first Republican to qualify for the matching funds, although he has not yet accepted them.

At the end of June, Tancredo said in a filing with the FEC that his campaign had raised $2.8 million and had about $556,000 on hand. Campaign officials say the allocation will allow Tacredo to take out a $2.5 million bank loan and repay it when the federal funds arrive.

Tancredo, known mostly for his strong views on immigration, has registered at about 1 percent in Iowa polls and has acknowledged that any thing less than a third-place finish in the state will force him to drop out of the race.

As the cost of running a modern campaign in Iowa has grown, most candidates in both parties have eschewed federal matching funds because of rules related to receiving the aid. A candidate who receives matching funds can spend no more than $50 million during the campaign. To qualify for matching funds, candidates must raise at least $100,000 by collecting $5,000 in 20 different states, in amounts no greater than $250 from any individual.

The federal funds match donations made by individual contributors dollar-for-dollar up to the $250 maximum, according to the FEC.

Tancredo says he has raised $176,000 from more than 3,000 contributors in 25 states.

Through the second quarter, Tancredo was sixth in fundraising among Republican candidates. But in the money race he trails far behind Iowa frontrunner Mitt Romney, former governor of Massachusetts, who has raised $44 million, and former New York Mayor Rudy Giuliani, who has raised $35 million.

Most Republicans have spent the weeks since the Iowa Straw Poll traveling around the country raising funds. New financial disclosure reports will be filed at the end of the month. Tancredo will be in northwest Iowa this weekend, with meetings set for Sibley and the Clay County Fair in Spencer.