John McCain raised $11.2 million in the second quarter from 72,000 donors, passing the campaign's goal of $10 million, campaign manager Terry Nelson said in a conference call this afternoon. However, because their spending was based on earlier projections, which once topped $100 million this year, they only have $2 million left in the bank.

The campaign is cutting an unspecified number of staff – Nelson and senior strategist John Weaver wouldn't confirm an Associated Press report that said 50 positions – and senior members are taking pay cuts. Nelson said he is taking himself off the books and volunteering his time.

The campaign is also considering accepting public matching funds that would limit their overall expenditure, the first of the top contenders to announce the possibility of such a move.

Weaver acknowledged that McCain's support for the immigration compromise in the Senate cost his campaign dearly.

"That debate is now over," Weaver said. "We believe the senator will be rewarded for a principled stand on this issue when the voters start tuning into this race after Labor Day."

He said the focus in the months ahead will be on getting McCain out on the campaign trail with renewed focus on the early primary states.