Kamala Harris is poised to take over for Joe Biden if he drops out of the presidential race, in part because she’s the only one who can control the Democratic Party’s $240 million war chest, sources told The Washington Post.
A number of prominent Democrats are lining up to replace the ailing 81-year-old Harris, but the $250 million Biden and Harris have raised is non-transferable, campaign finance sources told The Washington Post.
“Biden has two real options: Kamala inherits it or he moves everything over to the DNC,” Rob Casey, a partner at Signum Global, told The Post. “Kamala gets to spend all of that money. Everyone else is on their own to raise money.”
Campaign finance sources said that even if Biden wanted to, it would be difficult for him to give money to other candidates who have been mentioned as possible successors, such as California Gov. Gavin Newsom and Michigan Gov. Gretchen Whitmer.
That’s because only Biden and Harris’ names appear on federal documents relating to the donor-funded campaign, and their amounts account for the vast majority of the money raised.
Biden, like all other individuals, is subject to campaign finance laws that limit contributions to each candidate in a general election to $3,300, according to legal sources. Even the Democratic National Committee limits contributions to each candidate to just $5,000.
And some Democrats told The Post that even if Kamala appears on the ballot, it would be a “tragedy” to have to settle for a candidate “no one wants,” sources told the Post.
“The tragedy for Democrats is they put so much emphasis on identity politics that they picked someone who nobody wanted but who fits the bill,” one Democratic donor familiar with the situation told The Washington Post.
“If they had focused on performance politics, they would have been in a bad spot… But I don’t think she can win.”
The campaign said in a conference call with donors on Sunday that if Biden were to step down, the money would be redirected to Harris.
Following Biden’s dismal failure at the debate last week, According to a CNN poll, Harris Harris would have a slightly better chance of beating Donald Trump if she were to go head-to-head with him instead of Biden: Polls have shown that she would win over 45% of registered voters if she faced Trump, compared with just 43% who chose Biden.
While Biden has stressed he will remain in the top position, Democratic aides acknowledge the campaign needs to be prepared for any eventuality, especially as some key Democrats have begun to step up calls for Biden to step aside.
They added that with the vast amount of money at stake, putting Harris at the top of the list of candidates would be the easiest option.
If Biden and Harris both decide to drop out of the race, the money could be transferred to the Democratic National Committee.
Candidates also always have the option of simply paying back donors, rather than trying to move the funds elsewhere.
CBS said the Biden campaign raised $127 million in June, the most ever month for a reelection campaign, and noted that the campaign is spending about $50 million a month on advertising.
However, the outlet noted that the Trump campaign and the Republican National Committee raised more money in April and May and have yet to release their June totals.
Additional funding for Democrats challenging Biden can come from political action committees (PACs). Unlike official campaigns, where candidates have discretion over their spending, money from PACs can be sent relatively easily, sources told The Post.
“PACs don’t have boards of directors, so PAC money can go to anyone,” said Republican fundraiser Caroline Wren.
Future Forward, an informal political action committee that is raising money for Biden, has more than $200 million in reserve, according to a January campaign filing, but it also announced plans to spend $250 million on advertising between the Democratic National Convention and the November election, and it’s unclear whether all of that money will be spent.
But Democratic sources say this is about more than just money. “As the sitting vice president, Harris is the natural choice to take the leadership role,” Casey adds. “Politically, she is the highest-ranking Democrat and procedurally she will likely inherit Biden’s delegate count and support.”
But the sources also noted that if Biden were to withdraw at such a final stage in the electoral process, it would be an unprecedented move and there would be little way to know exactly how it would be handled or what would happen in terms of funds raised or a new nominee.
