Cash-strapped DNC shelled out more than $800K to non-voting territories like Virgin Islands while in debt

The Democratic National Committee (DNC) entered the final 100 days before the midterm elections Sunday at its Washington headquarters with debts exceeding cash by more than $2 million and no plans for its customary transfers to congressional campaign committees, after an early-spending strategy raised questions about support for House candidates in decisive swing districts.

Federal Election Commission filings showed the DNC ended June with $16.3 million in cash and $18.5 million in debts, leaving liabilities approximately $2.2 million above its reserves. The Republican National Committee (RNC), by comparison, reported approximately $128.5 million on-hand and no outstanding debt.

The New York Times reported that the DNC had asked vendors to delay spending bills until after the elections and informed congressional leaders it would not make its traditional transfers to the House and Senate campaign committees.

The New York Times also noted that the DNC and an affiliated committee spent approximately $840,000 on Democratic organizations in five non-voting U.S. territories since last year.

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Veteran DNC member Donna Brazile told The New York Times that DNC Chairman Ken Martin needed major assistance.

"Ken needs help — H-E-L-P," Brazile said. "And if he’s reluctant to say it, I’m here to help him ask. It’s hard. It’s very difficult."

The cash disparity extends to the committees directing resources into House races. The National Republican Congressional Committee ended June with $92.7 million, compared with $79 million for the Democratic Congressional Campaign Committee, Axios reported.

A recent Supreme Court decision allowing unlimited coordinated spending between parties and candidates made committee reserves more consequential in competitive districts. Control of the House could turn on fewer than 20 races, according to The Associated Press.

Despite the cash gap, Democratic Congressional Campaign Committee (DCCC) Chair Suzan DelBene pointed to the committee's second-quarter fundraising and the performance of Democratic candidates.

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"The DCCC's strong quarter of fundraising combined with the incredible results of our Frontliners and challengers show that across the battlefield," DelBene said, in a July press release. "Democrats are assembling people-powered campaigns ready to win in November and make Hakeem Jeffries the next speaker of the House."

In a statement to Fox News Digital, DNC Executive Director Roger Lau disputed the characterization of the vendor discussions as evidence of financial distress.

"This is nothing more than standard negotiations with vendors over contracts and payment processes," Lau said.

Democrats are trying to win back control of the House for the first time since Republicans re-gained the majority in 2022. Republicans also control the U.S. Senate after winning the majority in 2024. 

Midterm elections are historically difficult for the party of the incumbent president. President Joe Biden's Democrats overperformed expectations in 2022 and held onto Senate control, but still lost the House. President Donald Trump's Republicans lost the House in 2018, his first midterm, and President Barack Obama's Democrats were routed in both his midterms as well, losing the Senate in 2014 and the House in 2010.

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The DNC said its territorial spending was part of a four-year State Partnership Program that transfers more than $1 million per month to 57 Democratic state and territorial parties. Each party receives $17,500 monthly, while parties in Republican-controlled states receive an additional $5,000 through the DNC’s Red State Fund. State parties also receive six figures’ worth of voter data and technology annually.

The agreement also provides for six regional training boot camps during each two-year cycle and five new regional directors.

Martin said last week that the investment reflected his strategy of moving resources beyond Washington and strengthening local party organizations.

"The current DNC has raised the most money of any DNC without the White House in the 198-year history of the Democratic Party," Martin said in a Substack post on Monday. "If the question is whether the Democratic Party will be ready to win — everywhere, at every level, in this election and for the decade ahead — the answer is a resounding yes."

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The committee's financial position received additional scrutiny Sunday when digital news publication NOTUS reported that the DNC used its headquarters as collateral for a $15 million credit line. A DNC official said the building had also secured credit lines in several previous election cycles.

"This is not new," the official said. "The loan documents were publicly released in November, and the DNC’s building was also used as collateral in our prior lines of credit in 2019, 2018, 2014, and many other years."

Fox News Digital reached out to the RNC for comment, but did not immediately receive a response.