2004 Election                

Despite announcing in Baguio City on December 30, 2002, that she would not contest the presidential elections of 2004, Arroyo changed her mind and decided to seek a new six-year term. During a large gathering in her home province of Pampanga, Arroyo declared that she has decided to "defer her retirement," citing the growing clamor from her supporters to run in the election. Because of this turnaround, her popularity rating suffered.

The 2004 election was seen as a chance for Arroyo to solidify the credibility of her administration, which was marred by questions of legitimacy since its 2001 rise to power. Arroyo fought a bitter campaign with the opposition candidate and Estrada's best friend, popular film actor Fernando Poe, Jr. She was commonly seen as the intellectual heavyweight, as opposed to Poe, who did not finish high school. Other candidates were former Senator Raul Roco, Senator Panfilo Lacson, and Evangelist Eduardo Villanueva. 

Arroyo lagged behind Poe in the polls prior to the campaign season, but her popularity steadily climbed to surpass Poe's. This success was later attributed to her political machinery, the K4 Coalition dominated by the LAKAS Party (she assumed co-chairmanship of LAKAS with De Venecia in 2002); her choice of running mate, the popular senator, Noli De Castro; her endorsement by influential religious groups; and the loyal support of provinces such as Cebu and Pampanga, among others. 

As predicted by the polls, she won the presidential election of May 10, 2004, with a margin of more than a million votes over her closest rival, Poe. 

Allegations that her campaign funds used taxpayers' money emerged during the campaign when the national elections were in full swing. Arroyo's victory was marred by accusations of cheating from her rivals. Minor irregularities were discovered during the elections but cheating and corruption on a nationwide scale were not proven by the president's accusers.