Swalwell Drains Retirement Savings in Governor Race
Eric Swalwell is tapping into his retirement funds and deferring taxes as he runs for governor of California.
The Democratic congressman, age 45, faces a challenging campaign landscape with a mere 17 percent approval rating in his district. He has already spent over $200,000 in campaign contributions, notably for childcare expenses.
According to his tax returns from 2021 to 2024, Swalwell has made some financial adjustments. His federal tax contributions plummeted from $32,000 in 2021 to only $2,580 in 2022, and he opted to withhold nothing in 2023 to increase his take-home pay.
The documents reveal that around $145,000 of his family’s earnings originated from retirement account withdrawals, indicating a heavy reliance on savings as he gears up for his campaign.
Interestingly, Swalwell’s financial strategy unfolds despite his considerable income. He reported an expected income of about $184,000 for 2024 from his legislative role, with a total combined household income with his wife, Brittany Watts, nearing $444,000.
He owns a $1.2 million residence in Washington, D.C., and has been renting a property in Livermore since 2017. Criticism has emerged regarding both properties—some allege tax-related issues with the D.C. home and question the livability of the California rental. Swalwell dismissed these claims as mere political attacks.
Despite his substantial income, Swalwell has long been viewed as one of Congress’s less affluent members. In fact, a watchdog group estimated his net worth at a negative $37,000 back in 2018.
His financial challenges also include significant debt, such as up to $100,000 in student loans and around $65,000 in credit card debt from companies like Chase and American Express.
His decision to use campaign funds for childcare has raised eyebrows but is permitted under federal election laws.
Swalwell’s campaign has framed his financial situation as relatable to many middle-class families. A spokesperson noted, “Unlike other candidates, Congressman Eric Swalwell is not a billionaire,” taking jabs at rivals like Tom Steyer and Matt Mahan.
Swalwell is characterized as a working parent, balancing the demands of raising three young children while serving in his role. They are navigating mortgage payments, student loans, and everyday expenses, much like many Californians.
Steyer, also a Democrat, has faced scrutiny for his private equity ties and use of dark money in politics.
Additionally, Swalwell and former chief of staff Yardena Wolf have come under fire for aggressively promoting their startup, FindLazer, to House Democrats and political operatives through various means of communication. Colleagues reportedly found this outreach concerning, with suggestions that it upset many within California’s delegation.
FindLazer, launched in early 2024, positions itself as an AI platform aimed at assisting campaigns in assessing donor data and enhancing fundraising efforts. It has reportedly generated about $60,000 from a small number of Democratic campaigns, many connected to Swalwell’s political network.
Swalwell’s financial disclosures indicate he holds between $200,000 and $500,000 in company stock, and he battles substantial personal debt, including a mortgage exceeding $1 million.
Some within the Democratic ranks labeled the startup’s promotion as inappropriate, with one strategist suggesting it became a “joke” among staff. Concerns arose that Swalwell may have linked his legislative support to his company’s interests, implying some pressure on his colleagues to engage with the pitch.
House ethics guidelines prohibit members from leveraging their positions for personal gain and caution against promoting products linked to members of Congress. Swalwell’s team has denied any ethical violations, emphasizing their focus on supporting Democratic victories and utilizing all available resources for the cause. Wolf mentioned that all actions were conducted in accordance with House Ethics Committee guidelines.
