Vice President Kamala Harris has seen a wave of support from big-money donors follow President Joe Biden According to people familiar with the matter, she withdrew from the competition with the help of a bundler who had assisted her in past competitions.
Shortly after Biden announced his withdrawal run for president Those who helped her raise money during her failed Democratic primary run in 2020 and her successful Senate campaign in 2016 immediately mobilized to reach out to wealthy donors, according to these people. People who spoke to CNBC requested anonymity in order to speak freely.
Some senior party officials financier They chose to withhold the funding because they believed Biden should not lead after a poor performance in a June 27 debate with former President Donald Trump.
Top party fundraisers currently planning to help Harris include veteran Wall Street executive Marc Lasry, according to a person with direct knowledge of the situation. Lasry helped the vice president raise money when he ran against Biden in the 2020 Democratic primary. he after He raised campaign funds for Biden when he defeated Trump that election cycle.
Venture capitalist Reed Huffman plans to donate more to Harris’ campaign than he would have if he had supported Biden over Trump throughout the 2024 presidential election cycle, according to a person familiar with the matter. Huffman has donated at least $10 million to pro-Biden political action committees so far this election, according to Federal Election Commission records.
huffman Agree Harris posted on social media. A spokesman for Huffman declined to comment.
Ahead of Biden’s exit, Harris allies were planning to hold a fundraiser in early August in the posh Hamptons area of ​​New York, featuring Second Gentleman Doug Emhoff, some people familiar with the matter explained. (Doug Emhoff). Some donors deleted emailed invitations out of dissatisfaction with Biden, these people explained.
It is now expected that next month’s event in the Hamptons will likely sell out, with many donors helping Harris on the sidelines, according to a person familiar with the matter.
Alexander Soros, the son of Democratic megadonor George Soros, posted on social media on Sunday after Biden withdrew, “It’s time for all of us to rally around Kamala Harris and defeat Donald Trump.” It’s time.
But major donor support for Harris is not widespread across the Democratic Party, suggesting she will have some work to do to get them on her side.
Stuart Bynum Jr.The chairman of Choice Hotels and one of Biden’s major donors told CNBC that he is still on the sidelines and will not step in to help Harris because he believes there should be a fight with other potential nominees at the upcoming convention. They have a chance to lead the party. The Democratic National Convention is scheduled to be held in Chicago in August.
Another veteran Biden fundraiser said Harris and others seeking the nomination should hold a “mini primary” in the coming weeks.
But for Harris, the immediate onboarding of some donors is a sign that she can support the more than $95 million in campaign coffers she will control once Biden exits the race.
The campaign filed a new name for the campaign with the Federal Election Commission, “Harris for President.” Harris posted a donation link on her social media page to the political operation she now runs.
Anna Massoglia, investigations manager at campaign finance research center OpenSecrets, said Harris could receive about $96 million in immediate donations from the Biden campaign.
“The general consensus from most people I’ve spoken to is that she has access to the funds,” Masoglia told CNBC.
Masoglia noted that some conservative election lawyers believe Harris needs to officially become the Democratic nominee to fully receive campaign funds, though she added that they represent only a “small minority” of the lawyers’ opinions.
Still, the source of Harris’ campaign finances remains an open question until election lawyers resolve the dispute over whether Harris needs to be the official nominee. Masoglia said the same goes for contributions from the Democratic National Committee and the Joint Fundraising Committee.
However, the situation becomes more complicated if Harris fails to secure the Democratic nomination. In this case, the campaign can move its funds to a political action committee or other type of political committee that can be used to support the new nominee.
Masoglia said there are several drawbacks to this option: PACs would need to pay for more expensive advertising and wouldn’t be allowed to coordinate with candidates.
Another option is to refund the donor and ask them to donate to another committee. Masoglia said this increases the risk that donors may decide not to donate to the new campaign.
