"They vastly underrated Reagan…. And they had him down. He was beaten until North Carolina…. And they allowed that to happen
because they should have won it and they didn’t." So remembered Hal Bruno, who, in 1976, covered the election for Newsweek.
President Ford had defeated Reagan in the New England conservative stronghold of New Hampshire and in Florida, the South's
largest state. A week before North Carolina would vote, Ford handed Reagan another loss in the California governor's native
state of Illinois. Along the way, Ford also notched wins in Massachusetts and Wisconsin.
Both campaigns stumbled into the Tar Heel State cash-strapped and disheveled. Reagan was $2 million in debt, and his staff
bickered over how best to use the gifted orator. Ford, too, was financially pressed, and his campaign manager, Bo Callaway,
was forced to step aside over charges he had used his public office in the Pentagon for private gain. This left Stu Spencer
to run both the ground game and oversee administrative tasks in North Carolina. Spencer, by his own admission, was no administrator.
As both campaigns turned their attention to North Carolina, John Sears, Reagan's campaign manager, approached people on Ford's
team, floating the idea that Reagan might bow out of the race. To make it possible for Sears to persuade Reagan, the Ford campaign
would need to soften its attack, especially regarding his $90 billion dollar and social security remarks. Ford agreed to do this
and focused his remarks in North Carolina on the improving economy and other achievements of his administration.
When members of his staff raised the possibility of Reagan ending his campaign, the Gipper's spine stiffened and he ramped up
his attack. He sent thirty minutes of video of him lambasting Ford's foreign policy, especially détente and the Panama Canal,
to television stations across North Carolina, most of which used it. Reagan traveled to North Carolina often, while Ford
visited the state only twice. Reagan's efforts paid off. Ford's double-digit lead in the polls evaporated, and on election
night both camps were stunned when Reagan won with 52 percent of the vote.
President Ford could take solace from the fact that Reagan earned only two more delegates in North Carolina than did Ford (28-26),
leaving the President with 192 delegates to Reagan's 82. He could point to a recent national poll of Republicans that showed
56 percent supported Ford while only 32 percent supported Reagan. There was no escaping, however, that new life had been breathed
into Reagan's campaign. He became only the third challenger to defeat an incumbent president in a primary election. Money flowed
in, which allowed Reagan to take his message nationwide. Later, Dick Cheney would admit, "It was our most serious mistake, easing
off in North Carolina."