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Joe Biden is under quite a lot of pressure from his fellow Democrats and donors alike, to step down and let someone else contest against Donald Trump. The question that is coming up more than often is if the US president drops out of the 2024 race, what will happen to the tens of millions of dollars in his campaign war chest? read more
 "As donors pressurise Biden to drop out, what happens to the millions he raised?")
United States President Joe Biden speaks at AFL-CIO headquarters, July 10, 2024, in Washington. File Image/AP
Democratic donors have become increasingly vocal about their concerns regarding Joe Biden’s 2024 US presidential campaign. With many expressing doubts about Biden’s mental acuity and overall fitness for office, significant financial backers are warning that funding is “drying up.”
This hesitation is threatening to undermine the Democratic Party’s efforts to secure a victory against former US President Donald Trump in the upcoming election.
High-profile supporters, such as Netflix co-founder Reed Hastings, hotel mogul Stewart Bainum Jr, and actor George Clooney, have explicitly called for Biden to step aside, citing concerns over his cognitive health. Clooney, who headlined a $28 million fundraiser in Hollywood, stressed the urgency for Biden to withdraw, stating, “This is realism, not disrespect.”
Despite Biden’s attempts to reassure his donors and supporters through various calls and meetings, the reluctance among financial backers continues to grow. This funding crisis poses a significant risk to Biden’s re-election campaign, which is expected to be one of the most expensive in US history.
How has Biden’s campaign fared till now?
Biden’s campaign has seen substantial fundraising successes, even after a poor debate performance against Trump. The campaign raised $38 million shortly after the debate, marking its best day for grassroots donations.
Additionally, Biden’s campaign announced a $127 million haul in June, bringing their total funds to $240 million across committees.
However, Biden’s campaign has faced challenges in maintaining donor confidence. A CBS News poll indicated that only 27 per cent of registered voters believe Biden has the mental and cognitive health to serve as president, a significant drop from 35 per cent in early June. In comparison, 50 per cent of respondents believed Trump had the cognitive health to serve.
What happens to the campaign funds if Biden withdraws?
If Biden were to withdraw from the race, the handling of his campaign funds would depend on the circumstances and Federal Election Commission (FEC) regulations.
According to campaign finance experts, if US Vice President Kamala Harris were to become the Democratic nominee, she could access and control both the primary and general election funds that Biden’s campaign has collected.
Harris is listed on FEC filings for both Biden’s statement of candidacy and his campaign account’s statement of organisation, making her eligible to use these funds if she continues with the campaign.
If the Democratic Party were to nominate a completely new set of presidential candidates, the primary and general election funds would be treated differently. In such a case, the Biden campaign could convert its funds into a political action committee (PAC) or refund the general election money to donors. The FEC would make the final determination on fund allocation.
What has the latest donor reaction been?
Several major donors have already indicated that they would redirect their contributions to other races if Biden remains in the race. For instance, Next Generation PAC has vowed to raise $100 million to support Biden’s replacement nominee but would spend the money on down-ballot races if Biden holds on to the Democratic nomination.
Speaking to CNBC, philanthropist Gideon Stein echoed this sentiment, stated, “Virtually every major donor I’ve talked to believes that we need a new candidate in order to defeat Donald Trump.” Other significant contributors, like media tycoon Barry Diller and screenwriter Damon Lindelof, have also called for a “DEMbargo,” withholding funding until Biden steps aside.
How will the Democratic Party get impacted if donors step down?
The potential loss of donor support could have dire consequences for the Democratic Party. Major financial backers, such as Abigail Disney and Roger Hochschild, have expressed their frustration with Biden’s refusal to step down.
Disney, a significant donor, said, “If Biden does not step down the Democrats will lose. Of that I am absolutely certain. The consequences for the loss will be genuinely dire.”
The drying up of funds for Biden’s campaign could also impact down-ballot races. Some donors are already redirecting their contributions to congressional races, as noted by Hollywood powerbroker Ari Emanuel, who declared, “The lifeblood to a campaign is money, and maybe the only way this gets solved is if the money starts drying up.”
Can Biden pull off a 2020 again?
In the 2020 US election, Biden became the first candidate in US history to raise over $1 billion, ultimately defeating Trump, who raised $774 million.
However, the current funding challenges raise questions about Biden’s ability to replicate this success in 2024. If Biden can continue to attract donations in the weeks leading up to the Democratic convention, he may offer party strategists and congressional colleagues a reason to support his candidacy.
Also Read | The dilemma for Democrats: Damned they retain Biden, damned they replace him
The growing reluctance among major Democratic donors to continue supporting Biden’s campaign is possibly the most significant challenge facing his re-election bid.
With inputs from agencies
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English (US) ·