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NYT: DNC Faces Cash Crunch and Internal Turmoil After Chairman Allegedly Tossed Phone

NYT: DNC Faces Cash Crunch and Internal Turmoil After Chairman Allegedly Tossed Phone

The New York Times reports the Democratic National Committee is experiencing financial strain and internal turmoil. The DNC is reportedly about $2 million in debt while the RNC holds roughly $128.5 million, and the committee has asked vendors to delay invoicing until after the midterms. The story details an alleged incident in early July when Chair Ken Martin tossed a phone at a junior aide, prompting an HR complaint, and spotlights criticism of spending decisions such as a $7.3 million purchase of Kamala Harris's campaign list. The DNC says vendor pauses were routine negotiations and Martin has defended his approach publicly.

A New York Times investigation portrays the Democratic National Committee (DNC) as wrestling with financial strain and internal discord even as polls show brighter prospects for Democrats ahead of the midterms.

The Times reporters Shane Goldmacher and Reid J. Epstein describe a cash-short committee that has asked some vendors to delay invoicing until after the midterm elections while it manages outstanding obligations. The article reports the DNC is roughly $2 million in debt, compared with approximately $128.5 million in cash reportedly held by the Republican National Committee (RNC).

Alleged Phone-Throwing Incident and Internal Tension

The story also recounts an episode in early July in which DNC Chair Ken Martin allegedly threw his phone at the desk of a junior aide during a confrontation, an incident that prompted a formal complaint to the committee’s human resources office. Reporters say the episode reflects mounting stress around Martin, who is described as increasingly worried about leaks and possible efforts to remove him.

Questions About Spending Priorities

Critics in the piece challenge several of Martin’s financial decisions. Under his leadership, the DNC reportedly paid $7.3 million for the remnants of Vice President Kamala Harris’s 2024 campaign contact list—a transaction that helped cover Harris campaign debts—and spent about $840,000 on outreach and operations in U.S. territories such as Puerto Rico and Guam. The Times notes those territorial expenditures are unlikely to affect control of Congress, drawing scrutiny from some party observers.

DNC Response

The committee pushed back on the depiction. Martin published a Substack essay defending his fundraising and spending choices, arguing they support broader party goals. DNC Executive Director Roger Lau told the Times that requesting vendors to pause invoicing was "nothing more than standard negotiations with vendors over contracts and payment processes."

Whether the episode signals deeper leadership instability or reflects a high-pressure political environment, the report highlights sharp resource disparities between the two national committees and underscores internal challenges the DNC must address ahead of the midterm elections.

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