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Inside the DNC’s money problems

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The Democratic National Committee has fallen far behind in the cash race.

After a brutal 2024 election and several months into rebuilding efforts under new party leadership, the DNC wildly trails the Republican National Committee by nearly every fundraising metric. By the end of June, the RNC had $80 million on hand, compared to $15 million for the DNC.

And the gap — nearly twice as large as it was at this stage in Trump’s first presidency — has only grown in recent months, a Blue Light News analysis of campaign finance data found, fueled by several distinct factors.

Major Democratic donors have withheld money this year amid skepticism about the party’s direction, while the small-dollar donors who have long been a source of strength are not growing nearly enough to make up the gap. And the party has quickly churned through what money it has raised in the first half of the year, including spending more than $15 million this year to pay off lingering expenses from Kamala Harris’ presidential campaign.

The DNC has less cash this summer than it did at any point in the last five years.

“I understand that donors want some kind of a reckoning,” said Steve Schale, a Florida-based Democratic strategist. “But I also think that the kind of state party building that I think [DNC Chair] Ken [Martin] wants to do at the DNC is really vital to our success. And so I hope people kind of get over themselves pretty quick.”

The fundraising troubles reflect ongoing questions about the DNC’s direction under Martin, who was elected earlier this year, and comes as the DNC has faced months of bitter infighting. Continued cash shortages could limit the party’s ability to rebuild for a new cycle. And the DNC’s money woes stand in particularly stark contrast to Republicans, who have leveraged President Donald Trump’s fundraising prowess to raise record sums.

“Chair Martin and the DNC have raised more than twice what he had raised at this point in 2017, and our success in cycles thereafter is well documented. Under Ken, grassroots support is strong,” DNC Executive Director Sam Cornale said in a statement. “It’s now time for everyone to get off the sidelines and join the fight. Rebuilding a party is hard — rebuilding relationships and programs take time and will require all hands on deck to meet this moment.”

The DNC’s money woes stand out among major Democratic groups, Blue Light News’s analysis found: Democrats’ House and Senate campaign arms are near financial parity with their Republican counterparts, and several major donors who have withheld funds from the DNC are still giving to those groups.

“Donors see the DNC as rudderless, off message and leaderless. Those are the buzzwords I keep hearing over and over again,” said one Democratic donor adviser, granted anonymity to speak candidly about donors’ approach.

The DNC, on the other hand, touts Democrats’ success in state and local elections this year as proof the party’s investments are paying off. The group also began transferring more funds to state parties this year, and argues it is better-positioned financially than it was at this time in 2017, when it also significantly trailed the Trump-powered RNC.

Some Democrats attribute the slowdown among donors primarily to the need for a break after 2024, and the challenges of being the party out of power. Large donors would rather bump elbows with high-profile figures like a president or House speaker; Democrats cannot put on those kinds of fundraising events right now. The DNC also struggled for cash during Trump’s first presidential term, and that did not stop Democrats from taking back the House in 2018, or winning the presidency in 2020.

Still, the longer the DNC struggles to build up cash, the harder it will be to close that gap heading into the 2026 midterms and beyond. And the fact that other party committees are not seeing the same financial struggles puts more responsibility on Martin and his team to figure out a way to right the ship.

“Obviously, the sooner the DNC and other Democratic-aligned groups can get investment, the better. It’s better for long-term programs on the ground, it’s better to communicate our message early on,” said Maria Cardona, a DNC member and Democratic strategist. “However, I think you’re going to see donors coming into those things because they are starting to see Democrats fighting back, and that’s what they want.”

Just 47 donors gave the maximum contribution to the DNC in the first half of the year, according to the Blue Light News analysis of the party’s filings with the Federal Election Commission. Over the same period in 2021, more than 130 donors gave a maximum contribution. (In 2017, when the party was similarly struggling with large donors, the figure was 37.)

That means dozens of the DNC’s biggest donors from early last cycle have not yet given to it this year — accounting for several million dollars the party group has missed out on this time.

Many of those biggest donors have continued to contribute to other Democratic groups and candidates, indicating they are still aligned with the party and willing to dole out cash — though often not as much, and not to the DNC.

In the run-up to the DNC chair election earlier this year, several large donors publicly preferred Ben Wikler, the Wisconsin Democratic Party chair, to Martin, who long served as the leader of Minnesota’s Democratic-Farmer-Labor Party and also led the Association of State Democratic Parties.

“If Ken [Martin] really wanted to impress donors, he’d go do 20 or 30 salon events with donors and let them yell at him,” said the Democratic donor adviser. “If you take that on the chin, make some changes, then I think we could see some movement. But [he’s] not going to do that.”

With large donors lagging, the DNC has touted record grassroots fundraising from online donors. On ActBlue, the primary Democratic online fundraising platform, the group raised $33.8 million over the first six months of the year, up from $27 million over the same time in 2021.

But the total number of online donors was roughly the same in both periods — suggesting online donors are giving more than they were four years ago, but the group’s donor base has not expanded substantially.

Most DNC donors this year were contributors to Harris’ campaign or the DNC last cycle, according to the Blue Light News analysis. Another 14 percent of donors had no record of donations on ActBlue last cycle, suggesting the DNC is finding new small donors — but not nearly fast enough to make up for the drop-off among large donors.

In fact, the rate of online giving to the DNC has slowed in recent months. The party’s best online fundraising month was March, when it raised $8.6 million on ActBlue from 254,000 donors; in June, the party raised $4.1 million on the platform from 157,000 donors.

And reaching those online donors comes at a cost: The DNC has spent $5.7 million on online fundraising this year, according to its FEC filings. On Meta, which includes Facebook and Instagram, it is one of the largest political spenders this year, according to the platform’s data. The total spent on fundraising expenses so far is nearly as much as the DNC has sent to state parties this year.

Another set of major expenses also stands out for draining the DNC’s coffers: continuing to pay off expenses from Harris’ failed 2024 presidential bid.

Her campaign ended last year’s election with roughly $20 million in unpaid expenses, according to people familiar with its finances, although none of Harris’ campaign committees or affiliates ever officially reported debt. The DNC has spent $15.8 million total on coordinated expenses with the Harris campaign this year, including $1.3 million in June. A party spokesperson declined to comment on future campaign-related payments.

Elena Schneider contributed to this report.

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He wants Muslims out of the U.S., and he’s Blakeman’s opener

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Tennessee Republican Rep. Andy Ogles will be receiving an award at the Metropolitan Republican Club's annual gala.

THE ISLAMAPHOBE & BLAKEMAN: As Nassau County Executive, Republican Bruce Blakeman has welcomed Muslim residents with open arms.

He’s eaten at their Ramadan Iftar dinners, appointed the first Muslim chaplain to the county’s police force and talked about the value of Muslims as Nassau County county residents and Americans.

But as he tries to win a statewide race for governor, Blakeman is now aligning himself with a leader of the anti-Muslim faction of the national GOP — and he’s not responding to questions about it.

On Friday night, Blakeman will appear with Rep. Andy Ogles — the Tennessee Republican who has led the effort in Washington to “denaturalize” and “deport” Mayor Zohran Mamdani — at the Metropolitan Republican Club’s annual gala.

“Muslims don’t belong in American society,” Ogles has said. He’s also called Mamdani “Little Muhammad” and claimed that “denaturalizations and deportations are the only way to save the Big Apple.”

Blakeman’s team declined to comment on Ogles’ past statements or the gubernatorial candidate’s upcoming appearance with the House member.

Blakeman will deliver the gala’s keynote speech, and Ogles will be honored with the club’s Ronald Reagan Award for the Advancement of Individual Liberty. Also on the list of featured attendees are former Mayor Rudy Giuliani, Council Member Vickie Paladino and former Nassau County Bridge Authority Commissioner and pro-Israel influencer Emily Austin. Tickets start at $321.

The event’s host, the Metropolitan Republican Club, is often seen as the more mainstream counterpart to the city’s far-right New York Young Republican Club. The statewide New York State Young Republicans disbanded last year after POLITICO uncovered a trove of racist, homophobic and antisemitic chats involving members of the organization and other Young Republican groups around the country.

Ogles spoke at the New York Young Republican Club’s gala in December, where he said “naturalized illegal immigrants are polluting our politics” and “the new right must have courage to deport them,” a reference to his call for Mamdani’s deportation.

Husein Yatabarry, executive director of the Muslim Community Network, told Playbook remarks like Ogles’ can have a “huge impact” on the state’s roughly 1.7 million Muslim residents as they consider whether to engage in state politics.

“It’s sad to see that a lot of politicians are leaning into xenophobia and Islamaphobia and not looking at Muslims as part of their community’s fabric, but looking at Muslims as a way to get the most rude and heinous people behind you as a candidate,” Yatabarry said.

Ogles, who wrote a letter to the Department of Justice in October asking for Mamdani to be denaturalized, did not respond to a request for comment. He faces his own political battle this year, as a Democratic mayor has found fundraising success while hoping to topple Ogles in his deep-red district. Federal authorities are also reportedly investigating Ogles for potential campaign finance violations.

On the campaign trail, Blakeman often touts his strong electoral performances in purple Nassau County when speaking of his electability statewide. He easily won reelection last year in what was otherwise a bleak year for Republicans in New York.

But his Friday night appearance won’t be the first time he’ll find himself alongside figures from the extreme corners of the GOP. Blakeman was the keynote speaker at an event honoring John Eastman, an attorney who was disbarred in California last week for his efforts to overturn the 2020 election. When Blakeman’s running mate, Madison County Sheriff Todd Hood, spoke at a Buffalo-area political club led by a man who called Mamdani “vermin,” the Nassau County executive didn’t seem to mind.

“Mayor Mamdani is a disgrace,” Blakeman said in a statement at the time. “He is anti-American, antisemitic, and anti-Cop.” Jason Beeferman

FROM THE CAMPAIGN TRAIL

House Majority PAC did not announce any investments for advertisement in New York City as Democrats guard Reps. Tom Suozzi and Laura Gillen seats.

PAC IT UP: House Democrats’ biggest super PAC touted its “largest early investment” in the organization’s history, with a notable omission — New York.

House Majority PAC’s announcement earlier today of an initial $272 million spend on advertisements includes zilch in the notoriously expensive New York City media market, where Democrats are protecting Reps. Tom Suozzi and Laura Gillen on Long Island and attempting to flip Rep. Mike Lawler’s seat just north of the city in NY-17.

Democrats, fear not. Money is on the way, according to HMP.

“Today’s initial reservations prioritize markets where rates increase significantly and there will be more reservations to come,” the super PAC’s communications director CJ Warnke said in a statement. “HMP plans to invest heavily to flip districts like NJ-07 and NY-17.” (The NYC media market covers Republican Rep. Tom Kean in New Jersey’s 7th District as well.)

National Democratic groups are working from a much smaller electoral map in New York after flipping four seats two years ago. Last cycle, HMP’s initial reserve included $16 million in New York City and $5 million in markets further upstate.

Meanwhile, the Congressional Leadership Fund — the House GOP’s main super PAC — on Thursday also released its initial advertising reservations, which the group similarly described as its “largest ever.” That $153 million investment includes $18.6 million in New York City. CLF also said it is putting money into Albany ($2.1 million), Binghamton ($1.8 million) and Syracuse ($658,000), markets that cover Democratic Rep. Josh Riley’s district — another seat that Republicans have their eye on.

Last cycle, CLF’s initial reservation included $20 million in New York City and $8 million in markets elsewhere in the state.

“House Majority PAC isn’t even spending one dollar to defend vulnerable Dem members Tom Suozzi, Laura Gillen, Josh Riley & [New Jersey Rep.] Nellie Pou,” CLF spokesperson Lydia Hall said in a statement. “They’ve given up on these incumbents while funding other offensive fantasies across the country.” Madison Fernandez

From the Capitol

The Trump administration's executive order reclassifies state-licensed medical marijuana as less dangerous.

SCHRÖDINGER’S CANNABIS: New York’s beleaguered medical cannabis program can breathe a sigh of relief today after the Trump administration rescheduled medical cannabis through an executive order. Overnight, they went from dealing in a Schedule I, federally illegal substance to one that has a pathway to federal regulation under Schedule III.

What does this do for New York’s medical cannabis producers? First off, they will no longer be subject to an onerous federal tax code that barred them from taking typical business deductions like employee salaries. And starting next week, they’ll be able to register with the Drug Enforcement Administration — a dramatic shift for an industry that was viewed by the federal government as illegal drug traffickers.

The cannabis industry in New York and beyond is cheering the move as normalizing medical use of the substance. While the order doesn’t immediately change the status of the state’s adult-use market, where anyone at least 21 years old can legally shop, it does signal that the administration will likely take steps to do so this summer.

Beyond that is where things get a little murky. “There are a lot more questions coming out of this order than there are answers,” said Katie Neer, a cannabis regulatory lawyer who represents the New York Medical Cannabis Industry Association.

It could make it easier for the cannabis industry to access financial services, though that remains to be seen. And it could draw more capital to New York’s medical cannabis operators, where there are 10 licensees that are not yet operational. It could also enable New York’s medical cannabis operators, who are under one of the strictest programs in the nation, to export their products.

“It creates a market across the world for New York’s pharmaceutical [cannabis] products … to be exported internationally,” said Adam Goers, senior vice president of corporate affairs for New York medical cannabis operator Columbia Care. In terms of interstate commerce? “We’ll see how that plays out.”

New York’s medical cannabis program launched in January 2016 with 10 licensed operators. Eight of those are still operational, and the state issued licenses to 11 new medical operators more recently.

For now, even as they welcome the federal shift, cannabis companies will be tasked with figuring out the confusing legal complexities moving forward. Some of New York’s medical marijuana businesses also sell products in the adult-use market, which creates a quandary when it comes to figuring out their taxes, and more.

“It’s Schrödinger’s cannabis, right?” said Mike Feldman, general counsel of Nabis, a cannabis distributor in New York. “It is sitting in a warehouse, and it is both Schedule I and Schedule III at the same time.” — Mona Zhang

TRAIN TROUBLES — A dispute between Amtrak and New York’s Metropolitan Transportation Authority threatens the full rollout of new Acela trains, Amtrak said in a lawsuit that represents the latest transit dispute between President Donald Trump’s and Gov. Kathy Hochul’s administrations.

The suit, filed in Manhattan federal court, asks a judge to order Metro-North to give Amtrak access to the tracks, Blue Light News Pro reports.

Amtrak said Metro-North is blocking its ability to test new trains because of a dispute between the two railways over liability for damage to an overhead power line that Metro-North blames on one of Amtrak’s NextGen Acela trains.

In a statement, MTA suggested Amtrak is trying to distract from another ongoing dispute where MTA says Amtrak is holding up expansion of commuter service to Penn Station.

In the lawsuit, Amtrak reveals an issue with its new Acela trains tangling with MTA infrastructure near a bridge in Westport, Connecticut during previous tests. Similar infrastructure problems — involving the interaction between overhead power lines and a train pole that draws energy from them — caused massive delays for commuters in New Jersey two summers ago. The Garden State and Amtrak were able to work through their issues; this lawsuit against New York suggests a broken relationship between Amtrak and Empire State officials. — Ry Rivard

IN OTHER NEWS

BILLIONAIRE BLUES: Citadel CEO Ken Griffin suggested the hedge fund might halt its planned New York City expansion after Mamdani filmed a video at his Manhattan penthouse to announce a new tax on second-homes worth over $5 million. (The Wall Street Journal)

DELAY NOW, PAY LATER: Mamdani’s team presented Hochul’s administration with a plan to delay pension fund payments in an effort to save at least $1 billion as New York City faces a multibillion-dollar budget gap. (The New York Times)

ZONE OF INTEREST: Unions are meeting with Mamdani’s administration to push for a veto of the buffer zone bill, which keeps protesters away from schools and educational facilities, as the mayor’s decision deadline nears. (THE CITY)

Missed this morning’s New York Playbook? We forgive you. Read it here.

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