The Democratic National Committee (DNC) is experiencing significant financial challenges, falling far behind the Republican National Committee (RNC) in the fundraising race. By the end of June, the RNC had accumulated $80 million in cash on hand, starkly contrasting with the DNC’s $15 million. This widening gap, which is nearly twice as large as it was during Donald Trump’s first presidential term, has raised concerns about the DNC’s ability to fund its operations and rebuild for future elections.
According to a POLITICO analysis of campaign finance data, the financial disparity between the two committees has grown over the past few months. The DNC’s struggles are attributed to several factors. Major donors have withdrawn their support, expressing skepticism about the party’s direction, while small-dollar donors have not been able to bridge the gap adequately. Additionally, the DNC has been spending a significant portion of its resources on clearing up lingering expenses from Kamala Harris’ 2024 presidential campaign, further straining its financial reserves.
Steve Schale, a Florida-based Democratic strategist, highlighted the frustration within donor circles, stating, “I understand that donors want some kind of a reckoning, 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 difficulties reflect ongoing questions about the DNC’s direction under Martin, who was elected earlier this year. This comes at a time when the DNC has been embroiled in months of bitter infighting. These financial challenges could hinder the party’s ability to effectively rebuild for the next electoral cycle. The DNC’s financial struggles are a notable contrast to the RNC, which has leveraged President Donald Trump’s fundraising prowess to raise record sums.
Former DNC Executive Director Sam Cornale defended the DNC’s efforts, stating, “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.” He encouraged all members to get involved in the party’s rebuilding efforts, emphasizing the importance of collective action in restoring the party’s strength.
Despite the DNC’s financial challenges, the party is highlighting its successes in state and local elections as evidence of its effective strategies and investments. The group has also begun transferring more funds to state parties, positioning itself as being better-prepared financially than it was during the 2017 period when it also significantly trailed the RNC. However, the party’s inability to secure substantial donor support remains a critical issue, particularly concerning large contributors who have not yet given to the DNC this year, resulting in a loss of several million dollars.
Some Democrats attribute the slowdown in donations primarily to the need for a break after the 2024 elections, as well as the challenges of being out of power. Large donors prefer engaging with high-profile figures such as a president or House speaker, which the DNC is currently unable to provide. This situation mirrors the challenges the DNC faced during Trump’s first presidential term, yet Democrats were still able to take back the House in 2018 and win the presidency in 2020.
Nevertheless, the longer the DNC struggles to build up its financial reserves, the more difficult it will be to close the gap heading into the 2026 midterms and beyond. The fact that other party committees are not experiencing the same financial difficulties places additional pressure on Martin and his team to find solutions to these challenges. Maria Cardona, a DNC member and Democratic strategist, emphasized the need for quicker financial investment: “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.”
The DNC’s struggles are also evident in its fundraising metrics. According to the POLITICO analysis, only 47 donors gave the maximum contribution to the DNC in the first half of the year, compared to over 130 in 2021. While some donors continue to support other Democratic groups and candidates, indicating their continued allegiance, their reluctance to support the DNC directly poses a significant hurdle.
Grassroots fundraising has been a focal point for the DNC, which reported raising $33.8 million through online platforms like ActBlue in the first six months of the year, up from $27 million in 2021. However, the number of online donors has not grown significantly, suggesting that existing contributors are giving more rather than new donors being attracted. The DNC has also invested heavily in digital advertising, spending $5.7 million on online fundraising, with a notable presence on Meta, which includes Facebook and Instagram.
Another set of major expenses draining the DNC’s resources is the ongoing settlement of expenses from Harris’ failed 2024 presidential bid. Her campaign ended last year’s election with approximately $20 million in unpaid expenses, according to those familiar with its finances, though officially reported debt was never acknowledged. The DNC has already spent $15.8 million on coordinated expenses with the Harris campaign this year, including $1.3 million in June alone. A party spokesperson declined to comment on future payment obligations, leaving the DNC’s financial future uncertain amid these ongoing costs.
These financial strains underscore the urgent need for the DNC to address its fundraising challenges and stabilize its financial position to effectively compete in the upcoming elections. The extent of financial support and effective strategies for donor engagement will play a crucial role in determining the party’s ability to recover and thrive in the political landscape.