The Democratic National Committee (DNC) is facing a deepening financial and leadership crisis just months after suffering major losses in the 2024 election.
According to federal records, the DNC’s cash reserves shrank by $4 million between January and April of this year, while the Republican National Committee’s (RNC) funds grew by $29 million during the same period.
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As of May, the DNC reported $18 million in available cash, compared to the RNC’s $67.4 million.
The DNC’s dwindling finances have sparked internal discussions about borrowing funds to continue operations, according to sources who spoke with The New York Times.
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The decline has been attributed in part to large donors withholding contributions following the party’s defeat.
Only three individuals donated $100,000 or more to the DNC between January and April.
“People invested more money than they ever had before [in 2024], they dug deeper than they ever had, and they are quite frustrated by the result,” said DNC Chairman Ken Martin.
“They want answers. I don’t take it personally. I wasn’t in charge.”
The Democratic Party has been grappling with internal strife in the months since the election, including a high-profile leadership struggle between Martin and former DNC Vice Chairman David Hogg.
The dispute consumed the party’s attention for nearly two months and diverted focus from fundraising and strategy efforts.
How it started / How it’s going pic.twitter.com/BjAhmd2m19
— Western Lensman (@WesternLensman) June 19, 2025
Representative Mark Pocan (D-WI) described the internal disputes as “worse than some high school student council drama.”
Rufus Gifford, who served as finance chair for former Vice President Kamala Harris’s 2024 campaign, warned that the ongoing dysfunction could damage the Democratic brand nationally.
“What they are seeing is headline after headline of incompetence and infighting, and I think that is a real problem not just for the DNC but for the larger Democratic brand,” he said.
“We need to come together and focus on the issues at hand. That’s got to happen now. And I mean today.”
Despite the turmoil, Martin has retained the support of much of the party’s leadership.
He has traveled extensively during his first 100 days as chair, visiting nearly half of the states and seeking to build relationships with donors and activists.
However, Martin has also publicly acknowledged the challenges and personal doubts that have come with the position.
In an internal Zoom meeting on May 15, a recording of which was released by Politico, Martin admitted to feeling demoralized.
“For the first time in my 100 days on this job … the other night I said to myself for the first time, I don’t know if I want to do this anymore,” he said.
He expressed frustration over the internal conflicts and their effect on his credibility.
“I’m just quite frustrated with the position I’m in. … No one knows who the hell I am, right? I’m trying to get my sea legs underneath me and actually develop any amount of credibility so I can go out there and raise the money and do the job I need to put ourselves in a position to win,” Martin told Hogg and other DNC officers.
“You essentially destroyed any chance I have to show the leadership that I need to.”
DNC Chair Ken Martin just told Democrat Party elites “I don’t know if I wanna do this anymore” because of infighting with DNC Vice Chair David Hogg, who is challenging incumbent House Democrats. Sad! 🤣 pic.twitter.com/z2tAD0K6UV
— NRCC (@NRCC) June 8, 2025
Hogg was removed from his position as vice chair earlier this month on a procedural technicality and declined to run again.
Martin’s leadership has also drawn criticism from labor leaders.
Randi Weingarten, head of the American Federation of Teachers, and Lee Saunders, president of the American Federation of State, County, and Municipal Employees, both stepped down as at-large DNC members.
In a resignation letter to Martin, Weingarten wrote, “While I am proud to be a Democrat, I appear to be out of step with the leadership you are forging, and I do not want to be the one who keeps questioning why we are not enlarging our tent and actively trying to engage more and more of our communities.”
As the DNC approaches the final stretch of 2024, the party faces growing pressure to resolve its internal leadership issues and stabilize its financial standing ahead of the next election cycle.
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