The 2008 election face-off between Republican Susan Collins and Democratic challenger Tom Allen for the U.S. Senate seat is 16 months away, but the money race is well under way, and Collins holds the lead.

Already, the campaign is shaping up to be the most expensive in Maine history. The current record was set during Collins’ 2002 re-election campaign in which she and Democratic challenger Chellie Pingree spent a combined $8 million.

Collins is seeking a third term in the Senate. Allen, the six-term representative from Maine’s 1st Congressional District, announced this spring he will challenge the incumbent for the Senate seat in the November 2008 election.

Both candidates were required to file financial disclosures with the Federal Election Commission by July 15 for the fundraising period ending June 30.

According to a press release issued by the Collins campaign, the senator raised more than $1.26 million from April 1 to June 30. That figure, according to the Collins camp, “is believed to be a record for Maine political fundraising.”

Collins also reported having more than $2.3 million on hand for the re-election bid.

Meanwhile, Allen reported raising nearly $1.1 million in the second quarter. The campaign in its press release noted the funds came from almost 9,000 contributors.

Valerie Martin, Allen’s campaign manager, said in the statement that almost $300,000 of the contributions came from Maine sources and that $970,000 came from individuals.

Allen expected to report having more than $1.7 million cash on hand.

Jim Melcher, a political science professor at the University of Maine at Farmington, said the candidates’ successful fundraising reflects the race’s national prominence.

“I think the more money each raises, the more that scares the other side,” he said. “And it becomes like a snowball rolling down the side of a mountain.”

With Democrats holding a slim majority in the Senate since 2006, both parties believe control of the body is within reach.

And though Collins has won election to two terms, historically a safe threshold in Maine for someone holding federal office, Democrats hope growing public opposition to the U.S. occupation of Iraq and poor approval ratings for President Bush will favor challengers.

In the 2004 election, Bush won just 45 percent of the state electorate.

The Collins campaign dampens Democratic confidence by noting the incumbent’s approval rating in Maine in recent polls has been at 70 percent or higher. Campaign officials also point out that in 2002, when Collins was challenged for re-election by Democrat Pingree, the incumbent carried each of Maine’s 16 counties, winning with 58 percent of the vote.

But Allen’s record on Iraq is likely to be embraced by those opposing the war, since he voted against the invasion and co-sponsored a key amendment in the House that would have given the president leverage in dealing with Iraq but would have required Bush to return to Congress to seek final approval for an invasion. That amendment failed.

Collins in recent weeks has begun joining the ranks of Republican senators challenging Bush’s Iraq strategy, now favoring a change in the mission so troops could begin coming home.

In the Allen press statement, Martin said the campaign contributions “reflect Tom’s opposition to the war in Iraq from the outset and his continued work to save our troops from further bloodshed in an endless civil war.”

In the Collins campaign release, Steve Abbott, Collins’ chief of staff, said contributions indicate strong support for the candidate.

“This record-setting quarter of fundraising reflects the strong support that Senator Collins has for her re-election effort. We are especially pleased with our cash on hand, which puts us on very solid footing for this early in the campaign,” he said in the statement.

The Associated Press contributed to this report.