He was chairman of the Republican National Committee from 2002 until 2003, when he was appointed as the chairman of the Bush re-election campaign. In 2000 as well as 2004 he was rumored to be Bush's choice for United States Attorney General. During the 2000 election, some saw him as a possible running mate for Bush. The Washington Post described him as "one of Bush's closest friends and advisers". In September 2020, he announced his intention to vote for Joe Biden, the Democratic nominee in the 2020 presidential election.
Racicot was born in Thompson Falls, Montana. His ancestors came to the Montana Territory in the 1860s. Marc's grandfather arrived in Libby, Montana, in 1917 to work as a logging camp cook in northwestern Montana for J. Neils Lumber Company. Marc Racicot was born to Bill and Pat Racicot on July 24, 1948, in Thompson Falls. He was raised in Miles City, Montana, and Libby. His parents owned a foster home. His father was also a teacher, high school basketball coach, and track coach. He graduated from Libby High School. Racicot received a bachelor's degree in English from Carroll College in 1970. He was a starting basketball player in high school as well at Carroll College. He earned a J.D. degree in 1973 from the University of Montana School of Law in Missoula, Montana.
Racicot had previously been an Army ROTC graduate. He attended The JAG School at the University of Virginia and entered U.S. Army JAG Corps. He was immediately assigned as a prosecutor in the Army JAG Corps from 1973 to 1976. He was stationed in West Germany where he served as Chief Prosecutor for the largest U.S. military jurisdiction in Europe. While there, he also taught business and criminal law for the University of Maryland. After three years, he was discharged from the Army as a captain and returned to Montana in 1976.

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