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Democrats in the Red: Unraveling the Party’s Deepening Fundraising Crisis

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The following article, Democrats in the Red: Unraveling the Party’s Deepening Fundraising Crisis, was first published on The Black Sphere.

From Senate campaigns to dog catcher, nobody is donating to Democrats. Actually more aptly closer to the truth: Democrats are no longer able to fake donations from real donors now that USAID has been scuttled.

The DNC chair admitted on a leaked audio that he struggles to fundraise, and then he had the David Hogg situation to deal with. Well things are getting no easier.

AZ (fake) Governor Katie Hobbs and fake Senator Ruben Gallego sent out a fundraising letter to Arizonans (or Middle-Eastern terror organizations or other anti-American interests) asking for financial help. Regardless of what Democrats fundraises, they all claim that Trump is trying to unseat them. As former host of MSNBC Chuck Todd said recently, [pp], “The Democrats have become the party of hating Trump.”

It’s tough to fundraise, when you have no reasonable policy positions, and all you have is hatred of the other guy.

Below we look at the issues driving the Democrats’ inability to fundraise:

1. A National Party Losing Ground

  • Major donors retreating: Heavyweights like Barry Diller, Michael Bloomberg, and Marc Lasry have paused or pulled donations from the DNC, branding it “ineffectual” and expressing frustration with internal turmoil and ideological drift.

  • Cash reserves in decline: As of late May 2025, the DNC’s cash on hand fell to around $15–18 million—a stark contrast to the RNC’s $72 million. Worse, elite donors and unions like Bill Ackman and Randi Weingarten have cut ties following infighting involving figures like David Hogg. 

  • Loan considerations loom: Reports suggest the DNC is even contemplating borrowing just to stay afloat —a concerning sign of desperation.

Meanwhile, the RNC thrives: In May, they reported net-positive fundraising of + $5 million, boosting their reserves to ~$72 million.

2. The Hill Committees: House & Senate Showdowns

As of May 31, 2025, total fundraising figures for the 2025–2026 cycle show:

Party Fundraising Spending Cash-on-hand
D Party (DNC + DCCC + DSCC) $146 million $145 million Near zero balance
R Party (RNC + NRCC + NRSC) $172 million $121 million +/– $50 million buffer

  • NRCC outshining DCCC: In March alone, NRCC pulled in $21.5 million compared to DNC’s $16.6 million. Watch these numbers over the next few cycles, and the advantage for Republicans will become much more clear.

  • Strong fundraising feats: Despite the headwinds, the DCCC narrowly outpaced NRCC in Q1’s cumulative totals (Jan–Mar: DCCC $36.9 million vs. NRCC $36.7 million)—but this came with razor-thin margins. Also, this is a short-lived situation, as I will explain in more detail later. 

3. Where Are Donors Fleeing?

  1. Small-dollar donors: Democrats retain the advantage here, with high percentages from under-$200 contributions—44% for Senate Dems vs. just 5% among Senate Republicans in Q1; 18% vs. 9% in House races. Don’t expect this to last long, if it’s even true. ActBlue’s alleged illegalities have certainly skewed the real data. However, even accepting the existing data, one thing is for sure: Democrats will no longer have any advantage in this area, perceived or otherwise.

  2. Big-dollar outflows: Major individual and institutional donors have leaned away from national party organs, redeploying funds to local races or issue-based nonprofits, citing internal disarray and ideological splits.

  3. Dark money avenues: Progressive non-disclosing groups, such as the Sixteen Thirty Fund (Arabella network), pumped hundreds of millions in 2020—but these don’t replenish party coffers directly.

4. ActBlue Under Siege

Once a fundraising powerhouse, ActBlue raised $400 million in Q1 2025 and $16 billion since inception. But:

  • Trump-ordered DOJ probe: A presidential memo (April 24, 2025) directed DOJ and Treasury to investigate alleged “straw donor” and foreign contributions through ActBlue

  • Congressional subpoenas: House Republicans have launched subpoenas targeting ActBlue execs, accusing the platform of inadequate fraud controls (1,900+ suspect donations)

  • Democratic defense: Party leaders and ActBlue staff argue the probe is political interference and claim compliance, with tightened security since early 2024 .

  • Operational risk: Prolonged legal battles could chill small-dollar giving and slow fund transfers critical for campaigns.

5. Arizona: Hobbs, Gallego & the Local Gam

  • High-profile asks: Gov. Katie Hobbs and Sen. Ruben Gallego mailed appeals to Arizonans, warning of Trump threats and cited shrinking coffers. Some critics even deride the appeal.

  • Polling pressure: Gallego, despite raising over $1 million in his first Senate-quarter and holding a supposed 50% approval rating, criticized the Dems for ideological purity that shrinks the coalition. This was his ploy to try to come off as a centrist. 

  • Ideological friction: Both face backlash over positions on immigration and LGBTQ+ issues—moves seen as political gambits to shore up moderate support.

  • Fundraising results: While Gallego’s initial totals were strong, that early momentum hasn’t translated into broader statewide or partisan giving; Hobbs, similarly, hasn’t disclosed major donor inflows beyond national scrutiny. Truth be told, Gallego benefitted from the USAID funding that has now been cut off. Let’s see how well he does in his next cycle.

6. Broader Personal Pressures

  • “Committee dues” stress: Legislative leaders raise staggering amounts—not just for their campaigns, but to lodge dues into party accounts. House Appropriations Chair Rosa DeLauro transferred 39% of funds to DCCC; GOP counterparts have done even more issueone.org. Each fund-raiser feels scrutinized like a commercial “tax.”

  • Public trust at stake: Democrat lawmaker obligations to raise money can inadvertently foster donor dependence; GOP counterparts are even more entrenched, sometimes shifting over 50% in transfers issueone.org.

7. Republicans: Cash, Stability & Infrastructure

  • Rock-solid war chests: RNC boasts almost five times the reserve cash of DNC. Hill committees collectively have $172 million in the bank and $50 million surplus over spending

  • Deep donor loyalty: GOP donors continue giving at scale, thanks in part to ideological consolidation and few infighting fractures—unlike Democrats where fractures run deep.

  • WinRed vs ActBlue: While Republicans trail Democrats in small-dollar fundraising, WinRed’s gains have helped sustain R fundraising. But GOP’s overall strength comes from a healthy mix of big donors and solid institutional support.

8. What It All Means

  • Structural headwinds: Democrats face donor erosion—from billionaires to traditional grassroots—amid crosscurrents of ideological tension, trust issues, and fundraising security threats. This trends shows no signs of stopping, as Democrats continue their destructive path.

  • Party morale: Leadership brawls, ideological purity tests, and public probe anxiety (especially around ActBlue) are dissuading donors.

  • Future implications: As national party coffers shrink, competitive races—such as midterms, governorships, and swing-state Senate contests—will reap the repercussions. Without deep pockets, Democrats may lose ground just as Republicans remain well-funded.

  • Small-dollar salvation?: While grassroots donors continue to deliver, legal disruptions around ActBlue and donor fatigue cast a shadow over small-dollar optimism.

9. Where to Watch Next

  • FEC filings: Watch FEC site for weekly public reports (“Dashboard → Party Committees → 2025–26 Cycle”).

  • ActBlue subpoenas: Monitor Congressional hearings in July (House GOP targeting ActBlue)

  • Ballotpedia updates: Ongoing comparisons of D/R committee finances (updated monthly) .

  • Bipartisan donor trends: Follow OpenSecrets and Campaigns & Elections for sector deep-dives, including small vs big donor trends and dark-money flows .

10. The Verdict

Democrats are weathering a major fundraising storm—from donor defections and depleted reserves to ideological crossfire and mounting legal threats. By contrast, Republicans are solidifying their lead with cash-rich committees, stable donor bases, and fewer internal fissures.

The margins are clear:

  • DNC: struggling, considering loans, organizers calling it “f‑ked”.

  • Republican Fundraising: robust, outpacing Democrats in every major category

If Democrats can’t rebuild donor trust, reunify around a coherent identity, and shore up ActBlue amidst scrutiny, the party risks entering 2026—and beyond—with critically underfunded campaigns. Whether grassroots zeal or policy pivot can bridge the gap remains the key question. Betting odds say no.

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