The D.N.C. Is in Chaos and Desperate for Cash - Just months into the tenure of a new party leader, Ken Martin, the Democratic National Committee’s financial situation has grown so bleak that top officials have discussed whether they might need to borrow money this year to keep paying the bills.

Source:https://www.nytimes.com/2025/06/18/us/politics/dnc-ken-martin.html
Archive:https://archive.is/wBrc6

Inside the Chaos Swirling Through a D.N.C. Desperate for Cash​

Under its new leader, Ken Martin, the Democratic National Committee has been plagued by infighting and a drop in big donations, raising alarms from Democrats as they try to win back power.

Just months into the tenure of a new party leader, Ken Martin, the Democratic National Committee’s financial situation has grown so bleak that top officials have discussed whether they might need to borrow money this year to keep paying the bills.

Fund-raising from major donors — some of whom Mr. Martin has still not spoken with — has slowed sharply. At the same time, he has expanded the party’s financial commitments to every state, and even to far-flung territories like Guam.

Fellow Democrats are grumbling that Mr. Martin, who quietly accepted a raise after taking the post, has been badly distracted by internal battles. So far, they say, he has been unable to help unite his party against Republicans, who control the federal government.

A protracted and public fight with David Hogg, the 25-year-old activist turned D.N.C. vice chair who blindsided party officials with a plan to challenge incumbent Democrats, made things worse. The clash included the leak of embarrassing audio of Mr. Martin questioning his own role and ended in Mr. Hogg’s unceremonious exit this month.

That was soon followed by the news that two of the country’s most influential labor leaders, who represent a combined 3.2 million workers, were also leaving the D.N.C. Both questioned the party’s direction under Mr. Martin.

Rufus Gifford, who served as the finance chairman of Kamala Harris’s 2024 campaign and maintains relationships with many top donors, suggested Democrats were being sent the wrong message at a time when they are desperately looking for “fight and leadership.”

“What they are seeing is headline after headline of incompetence and infighting, and I think that is a real problem not just for the D.N.C. 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. And if that can’t happen, we need to shift course.”
This account of Mr. Martin’s tumultuous early tenure is based on interviews with more than two dozen Democratic lawmakers, donors, strategists, D.N.C. members and party officials.

‘Worse than some high school student council drama’​

Part of the bumpy beginning appears to be fallout from a bare-knuckled fight for the chairmanship. With the spoils going to the winner as usual, Mr. Martin has pushed to install allies in some key posts — and remove supporters of his vanquished rivals.

“Some of the changes will leave people feeling as if they don’t have a seat at the table,” said Donna Brazile, an influential former party chairwoman and a current D.N.C. member, who did not endorse a candidate or vote in the race for chair. “He has his own inner circle. I’m not in it, and I don’t want to be in it.”

It has not been lost on some Democrats that Mr. Martin arrived at the D.N.C. as the consummate insider, a man who had led both the state party in Minnesota and the association of state party chairs. Yet he has struggled to navigate some internal Democratic coalition politics.

Mr. Martin had offered to keep the two top union leaders — Randi Weingarten, the president of the American Federation of Teachers, and Lee Saunders, the president of the American Federation of State, County and Municipal Employees — as members of the D.N.C. But he would not renew their plum assignments on the powerful Rules and Bylaws Committee, which controls how the party nominates its presidential candidates.

The Hogg episode also consumed and exasperated party leaders for close to two months.
“This is worse than some high school student council drama,” said Representative Mark Pocan, a Wisconsin Democrat.

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In an interview on Tuesday, Mr. Martin acknowledged that his early efforts to rebuild the party had been “overshadowed by some of this inside baseball stuff.” But he said he was bringing about meaningful change, pointing to increased investments in all 57 state parties, including the territories and Washington, D.C. He also noted that the D.N.C. was helping organize more than 100 town halls in Republican districts, carrying out an extensive 2024 postmortem and creating a war room to counter President Trump.

“I know there’s a lot of people that are carrying grudges, that are still litigating the campaign that their person didn’t win,” Mr. Martin said. “I am not one of those people. There’s no sense of living in the past. I have no enemies other than Donald Trump and the Republican Party.”

The biggest challenge facing Mr. Martin may now be financial.

Six people briefed on the party’s fund-raising, who spoke on the condition of anonymity to discuss its finances frankly, said big donors — who are an essential part of the party’s funding — had been very slow to give to the party this year as Mr. Martin solicits contributions. His commitment to state parties, which amounts to $1 million in monthly spending, has further strained the finances.

Senior D.N.C. officials have discussed the possibility of borrowing money in the coming months to keep the operations fully funded, according to two people with direct knowledge of the private discussions who insisted on anonymity.

Mr. Martin acknowledged those talks.

“That’s certainly not our plan right now,” he said of tapping into a line of credit, adding, “I don’t know if we’ll have to at this point.” He noted that grass-roots fund-raising had remained strong, and the party said small donations in his first three months were the most under a new chairman.
Still, the party’s total cash reserves shrank by $4 million from January through April, according to the most recent federal records, while the Republican National Committee’s coffers swelled by roughly

$29 million. A new report is due this week.

The party out of power often falls behind the one holding the White House. Still, the current financial gap is large: $18 million on hand for the D.N.C. entering May, compared with $67.4 million for the R.N.C. Hefty chunks sit in special accounts that cannot be used for operational costs.

In the first four months of the year, only three people gave $100,000 or more to the D.N.C., according to Federal Election Commission reports. The party said it had received three more six-figure donations in May and June from individuals.

Almost no one questions Mr. Martin’s work ethic. He has traveled to two dozen states as chairman and has energetically sought out money from donors, including this week in New York just days after two friends were assassinated in Minnesota.

“Everything that Ken has done, regardless of the drama that it has caused, has been the right moves,” said Maria Cardona, a longtime D.N.C. member. “He does the work. He rolls up the sleeves.” She and other allies noted that Democrats had won recent down-ballot and special elections, with Mr. Martin campaigning in person in several.

Mr. Martin said he had found that major donors were unhappy across the Democratic ecosystem after last year’s defeats. He has commissioned a significant postmortem review of the 2024 race, which is being overseen by Paul Rivera, a longtime Democratic strategist, and is set to entail as many as 200 interviews. A final report is expected by the end of the summer.

“People invested more money than they ever had before, they dug deeper than they ever had, and they are quite frustrated by the result,” Mr. Martin said of big donors. “They want answers. I don’t take it personally. I wasn’t in charge.”

One recent New York event with Ms. Harris did not bring in as much money as some had hoped, raising roughly $300,000, according to people briefed on the matter who insisted on anonymity to protect relationships. The sum was a fraction of the $1 million price for a single top-end ticket to a New York fund-raiser headlined by Ms. Harris last fall, when she was the nominee.

Even as the party faces a financial crunch, the D.N.C. increased Mr. Martin’s salary this year, federal records show and the party confirmed. His annual salary is now $350,000, up from $300,000.
Mr. Martin said in the interview that his salary had been set by a compensation committee within the party.

Nothing fractured the party quite like Mr. Hogg’s surprise decision to wade into Democratic primaries to try to oust incumbents. He and Mr. Martin feuded privately and publicly until Mr. Hogg’s ultimate departure.

At one point, Mr. Martin directly called a lawyer, Graham Wilson, who works at the firm of the Democratic superlawyer Marc Elias, to express dismay that the firm was also working for Leaders We

Deserve, Mr. Hogg’s political action committee. The firm subsequently dropped Leaders We Deserve as a client, according to two people briefed on the matter who insisted on anonymity to discuss private conversations. A D.N.C. spokeswoman said Mr. Martin had never instructed the law firm to end its relationship with Mr. Hogg’s PAC.

“David Hogg came in and dropped a nuclear bomb on the place,” said James Skoufis, a Democratic state senator in New York and Martin ally who was recently installed on the party’s executive committee. “It’s everyone’s hope and expectation that the drama will be behind us.”

One challenge for Mr. Martin in wooing big contributors is that during the race for D.N.C. chair, his campaign criticized his chief rival, Ben Wikler, the chair of the Wisconsin Democratic Party, for his ties to some of the party’s largest donors, such as the billionaires Reid Hoffman and Alex Soros. Shortly after Mr. Martin won, he told The New York Times that the onus would be on donors to mend any fences.

Mr. Soros has not heard from Mr. Martin since then, according to a spokesman for the billionaire. Mr. Martin said he had tried to connect with Mr. Hoffman but had “not had a chance to reach out to Alex yet.”

He added that new initiatives he had begun, including a “war room” to press the party’s message and the state investments, would pay long-term dividends. Another early Martin project is a new streaming show on YouTube, “The Daily Blueprint,” which is filmed in a studio with high-end production.

The show has drawn a minuscule audience so far, with some episodes scoring fewer than 1,000 views.
 
Seriously, they just did all this soul-searching about how old their party is and how they need to revitalize it. They bring in Hogg (who I have absolutely no bias in favor of) and he actually came up with a reasonable idea. It caused a civil war, meltdown tapes leaked, and they forced him out. The party is genuinely captured by the stupid. I'm not saying Republicans are smart as a party, but Democrats are stupid in a very specific way where they just cannot listen to a young white man, they've hammered the very possibility out of themselves by embracing open bigotry against such people for decades.
The thing is that hogg was too blunt. What he said was correct strategically and wrong diplomatically; he needed to bury the truth a few layers deeper for now to not set off the necron tomb. Say something like revitalising staffers across the board and refreshing the DNC's vaunted lineup, as well as preparing for the next generation with hearts and minds open.

A fresh crop of faces internally might have cost them the 2026 midterms, but it'd be a worthwhile trade for forcefully revitalising their much more important inner circle and getting some new faces in for a rebrand come 2028. again, though, the DNC isn't ready to concede that the best move long-term might be to take another L.

The deeper problem is that the dnc have trained their rookies not to have the diplomatic skills to navigate that situation; the younger class of democrats have always been especially willing to talk about kicking out old farts for the crime of being old, let alone being unhelpful and the party needing revitilisation, and speaking of that just on it's own doesn't hit any of the usual protected classes. This talk has been largely encouraged with the assumption it'd only apply to people who weren't the current heads of the dnc. He had no reason to suspect that his words wouldn't be cheered on and celebrated right up until the moment they weren't.

The DNC is about a small group of people who know how to navigate political situations, but like everything else in the democrat sphere, have become completely unable to admit anything that they are doing might be wrong or even just imperfect, for fear that such admittances would allow their rivals pounced on them. The democrat's mindset of being in the final state of history didn't just apply to their political approach but to the very structure of their organisations themselves - they genuinely couldn't process still needing to make changes and improvements. And thus have done everything in their power to not pass their skills to the next generation.

Until the DNC can break through this mindset, they will continue to rot as an institution.
 
Seriously, they just did all this soul-searching about how old their party is and how they need to revitalize it. They bring in Hogg (who I have absolutely no bias in favor of) and he actually came up with a reasonable idea. It caused a civil war, meltdown tapes leaked, and they forced him out. The party is genuinely captured by the stupid. I'm not saying Republicans are smart as a party, but Democrats are stupid in a very specific way where they just cannot listen to a young white man, they've hammered the very possibility out of themselves by embracing open bigotry against such people for decades.

Honestly Martin is also running up against all sorts of vested interests by trying to revitalize the party. In modern times, the national party has simply been the creature of the sitting president or the leading presidential candidate. They set the rules and they get any money raised.

One of Martin's big crimes was trying to strategically give money to the state democratic parties from the national party for development work. Nobody liked that. He also tried to put his own people in charge of making the rules for primaries and ran into big problems doing that.

Biden changed the primary system so that the most black and most corrupt state went first (South Carolina) over Iowa and New Hampshire. It was in theory just done to help Biden one time. But now its a "black people thing" and they are going to fight to the death to keep it.

Hogg wasn't completely wrong either. There are way too many bad democrats in safe seats who just collect a paycheck and are often really old.

What these people didn't fully understand is that the DNC is kind of dead and not where the true power lies in the party. Getting put in control of it is really not getting control of much of anything.
 
The deeper problem is that the dnc have trained their rookies not to have the diplomatic skills to navigate that situation; the younger class of democrats have always been especially willing to talk about kicking out old farts for the crime of being old, let alone being unhelpful and the party needing revitilisation, and speaking of that just on it's own doesn't hit any of the usual protected classes. This talk has been largely encouraged with the assumption it'd only apply to people who weren't the current heads of the dnc. He had no reason to suspect that his words wouldn't be cheered on and celebrated right up until the moment they weren't.

Also applies to having any skill at appealing to voters.

While old school Dems could want abortion on-demand at any time deep down inside? They were smart enough to tone it down to "Safe, legal and rare" to make it more palatable, even if they wanted no such thing. The idea of strategic slow-walking paid dividends over 30 years...

Modern Dem rookies are AOC's, sourced straight from campus and 2018 Twitter who have no concept of diplomacy - or thinking beyond now, just unbrideled passion and demands to change now "or else".

Their idea of "meeting you halfway" on the trans issue was "You can have a live son or a dead daughter"

Their idea of "moderating" on abortion was "It's either abortion or Handmaid's Tale"

Ask them to pump the brakes? They ask "Why should we let Nazis win? Wait, you're one of them aren't you? I'll primary you for this!"
 
Yeah it does, if I may be so bold.

You'd rather have had 4 more years of Biden? Or Kamala?

The fact he left the neocons adrift and they utterly failed to find land before they sunk has been one of the BEST things to ever happen to this country, politically, again if I may be so bold. It meant a PR-disaster Bible-thumper like Mike Pence or an opportunistic turncoat like John McCain looking to play the part of "The Democrats' favorite guy and one of the GOOD Republicans" is no longer viable on the right for anything but the memes.
What I’m saying is the fact that the only option to replace the McCain types in the GOP was an orange reality tv star. Don’t get me wrong, he’s done far better than my wildest hopes, but the fact that nobody better has appeared is really worrying. So far he’s proven utterly incapable of draining the swamp, which is ultimately what needs to happen. I’m glad he at least tried with DOGE but it was never going to fly given how the government works; he would have to purge the courts to actually pull it off and I don’t see that happening. I’m cautiously optimistic about Vance, but these are politicians we’re talking about here, they won’t be addressing the root problems because they can’t.
 
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