Kamala Harris Captures Big Money Support Following Biden’s Exit, But Will It Be Enough?
Following President Joe Biden’s announcement that he would not be seeking re-election in 2024, Vice President Kamala Harris has quickly gained momentum in the Democratic primary race. Key players in the party’s fundraising network, who had previously held back due to concerns about Biden’s leadership, are now actively mobilizing to support Harris. This influx of financial support could provide Harris with a significant advantage in her bid for the Democratic nomination.
Key Takeaways:
- Harris benefits from a wave of big money donors: Former Biden supporters, who were hesitant to contribute before the president’s withdrawal, are now readily offering their financial backing to Harris.
- Top fundraisers like Marc Lasry and Reid Hoffman are now backing Harris: These influential figures, who played a crucial role in Biden’s 2020 victory, are now shifting their focus to supporting Harris.
- Harris’s fundraising efforts are further boosted by the Biden campaign’s $96 million war chest: She is expected to gain access to these funds, giving her a substantial financial head start over other potential candidates.
- However, support for Harris amongst Democratic donors is not universal: Some major donors remain hesitant, calling for a primary fight with other potential candidates.
- Questions remain over the legal access to campaign funds: Whether Harris can officially utilize the Biden campaign’s funds before being formally nominated is being debated by election lawyers.
A Surge of Support from Key Players
The news of Biden’s departure from the race has spurred action from prominent figures in the Democratic Party’s fundraising network. Longtime Wall Street executive Marc Lasry, who previously helped raise funds for both Harris and Biden, is now actively supporting the Vice President’s campaign. Venture capitalist Reid Hoffman, a significant contributor to Biden’s political action committees, has pledged even greater support for Harris.
The momentum is evident in the immediate scheduling of a fundraiser in the Hamptons for early August, which is expected to be a sell-out event with many previously hesitant donors finally throwing their weight behind Harris.
A Shift in The Democratic Fundraising Landscape
The support for Harris is a clear indication that a power shift might be taking place within the Democratic Party’s fundraising apparatus. While the backing of key players like Lasry and Hoffman is a major boost, it doesn’t guarantee universal support for Harris.
Stewart Bainum Jr., a prominent Biden donor and Chairman of Choice Hotels, has expressed reservations about Harris, stating that he prefers a contested primary where other potential candidates have a chance to compete for the nomination. Other veteran Biden fundraisers have echoed this sentiment, calling for a "mini primary" in the weeks leading up to the Democratic National Convention in August.
A Financial Advantage, But Legal Hurdles Remain
Harris’s campaign stands to benefit significantly from the immediate access to the Biden campaign’s substantial war chest of $96 million. This financial cushion would give her a significant advantage in the race for the Democratic nomination. However, legal uncertainties remain regarding the exact timing and conditions under which Harris can fully access these funds.
Election lawyers are currently debating whether Harris must be officially declared the Democratic nominee before she can control the entire campaign war chest. Anna Massoglia, an investigation manager at the campaign finance research center OpenSecrets, notes that the majority of experts believe she can utilize the funds, but some conservative lawyers hold a different opinion. The debate extends to the potential access of funds held by the Democratic National Committee and joint fundraising committees.
Challenges and Alternatives
If Harris fails to secure the Democratic nomination, the situation becomes much more complex. The Biden campaign would likely have to convert its funds into a PAC or another type of political committee to support the new nominee. However, this comes with disadvantages, such as higher advertising costs and restrictions on coordination with the candidate.
Alternatively, the campaign could refund donors and request them to contribute to a new committee. However, there is a risk that donors might choose not to donate again, potentially hindering the new nominee’s fundraising efforts.
The Race for the Nomination: A Look Ahead
The departure of Joe Biden from the race has dramatically shifted the landscape of the Democratic primary. Kamala Harris has emerged as the frontrunner, benefitting from a wave of support from major donors and gaining access to the Biden campaign’s substantial war chest. However, challenges remain, including the legal questions surrounding campaign funds and the lack of universal support from Democratic donors.
The coming weeks will be crucial as Harris navigates these uncertainties, while other potential candidates emerge and attempt to challenge her. The Democratic National Convention in August will be the ultimate test as the party formally selects its nominee. Whether Harris can capitalize on her current momentum and emerge from this internal contest as the flag bearer for the Democratic Party remains to be seen.
