The Democratic National Committee took out a $15 million loan in October, an unusually large amount of debt for this point in the political calendar, as the party looks to rebuild its brand and infrastructure under new leadership.
New fundraising reports filed with the Federal Election Commission show the national party committee took out the loan at the start of October, about a month before Democrats secured major victories in pivotal elections for governor in Virginia and New Jersey, a key redistricting referendum in California and various other downballot races.
Those results have energized the Democratic Party one year after President Donald Trump swept the presidential battleground states on his way to defeating then-Vice President Kamala Harris and as poll after poll in the wake of that loss shows the party’s image at an all-time low.
National party groups often take out loans just before elections to help fund the frantic final weeks of activity. Such a large loan one year out from a national election is uncommon, especially at this point in the four-year election cycle.
And while the party out of power typically trails the president’s party in terms of fundraising, the Republican National Committee stockpiled a massive lead over its Democratic counterparts going into October, $85 million to $12 million.
The RNC has not yet filed its monthly fundraising report, which is due Thursday. The DNC’s shows it closed the month with about $18 million banked away after having taken the $15 million loan.
In a statement to The New York Times, which obtained the DNC’s filing shortly before it was publicly released, DNC Chairman Ken Martin framed the decision as a way to help invest in party-building activities. DNC officials have said the national party has upped its monthly commitment to state parties to more than $1 million a month, and the party said this month that it invested more than $3 million each into Virginia and New Jersey ahead of the elections there.
Those commitments and giving to state parties have drawn down the funds the DNC has available for the next election.
“We can’t win elections or fight back against Trump if the D.N.C. downsizes operations like it often does after a presidential cycle,” Martin told the Times. “I made a bet that investing early would build power, rack up wins and rally supporters back to the table. That bet is paying off.”