US election - Donors turn away from Biden
Some of the most prominent donors of the US Democrats have made it clear which potential candidates they would favor if President Joe Biden were to step down from the race for the White House: The donors focus on Michigan Governor Gretchen Whitmer and California Governor Gavin Newsom, according to insider reports.
Frustration among Democratic officials and supporters towards the difficult situation and concerns about Biden's prospects is growing. The state of Biden's campaign is increasingly being discussed, especially since his poll numbers have plummeted after the disastrous debate with Trump. Many believe that Biden's holding on to his candidacy is only prolonging the inevitable fight for the succession four months before the Presidential elections in November.
"Biden's campaign is doomed," said a close donor to the President, who also acts as a bundler, whose task is to collect money from other supporters. "I'm Joe's biggest fan, he's an admirable servant of the people, but he's doomed," he said. "We need to start focusing on what's next."
Vice President Kamala Harris is also among the candidates who, in the opinion of donors, could replace Biden, several donors and fundraisers who are in contact with each other revealed. Preparations are underway to raise hundreds of millions of dollars to finance a new candidate.
Chuck Schumer, the Democratic Majority Leader in the Senate, and Nancy Pelosi, the former Speaker of the House of Representatives, are reportedly involved in crisis talks, with the aim being to gauge their mood after the debate.
"The pressure is growing to turn the page and focus on finding the right candidate who can beat Trump," said a fundraiser from New York. "Everyone is talking to their contacts to make sure we're ready to support the right candidate as soon as Biden steps down."
Both governors met with Biden at the White House for crisis talks in early July, just a week after the President's stumbling performance in the TV debate, which prompted calls for his resignation from many quarters.
Both governors subsequently confirmed that they would continue to support Biden's re-election campaign. However, according to sources close to the matter, donors are working behind closed doors to support both of them should they enter the race for the White House.
Whitmer expressed her support for the President on social media and is also Co-Chair of Biden's re-election campaign. However, on the dark web network X, she posted a link through which donations could be made to her own political action committee instead of Biden's campaign team. Michigan Governor Whitmer also plans to attend the annual gathering of technology and media entrepreneurs in Idaho in mid-July – a potential platform for her to meet major Democratic donors.
Newsom has been one of Biden's prominent public spokespersons for months. After the debate in Atlanta, he defended Biden's performance in the "Spin Room" of the media. In early July, Newsom gave a speech in the contested state of Michigan, where he explicitly praised Biden. However, Newsom had to fend off accusations of a shadow campaign against him beforehand. He participated in a television debate with Florida Governor Ron DeSantis in 2023 and traveled to several primaries and decisive states.
Whitmer seems to be leading among big donors. The main reason is that she is considered more likely to win in important states like Michigan. Whitmer won the race for the governorship in that state in 2022 with a margin of more than ten percentage points. Current opinion polls show Trump leading in Michigan by several points over Biden.
"Michigan is a much more important state than California when it comes to elections," said a major donor. "Newsom is leading in the betting odds, but if you consider which states the Democratic Party needs to win, Michigan is crucial and California is not." California is also seen by many voters as a "progressive, business-unfriendly, far-left state," which could harm the party if a candidate is from that state.
A spokesperson for Newsom declined to comment. A spokesperson for Whitmer did not respond to a request for comment.
Abigail Disney withholds funds
While donors are searching for alternatives, the voices calling for Biden to withdraw from the race are growing among Democratic representatives. Surveys released at the beginning of July show that Biden's approval ratings have dropped significantly since the debate.
Abigail Disney, the heiress of the media conglomerate, said she would no longer donate to the Democratic Party until Biden steps down. The billionaire crypto-investor Mike Novogratz launched a PAC called Next Generation PAC, which aims to raise around 100 million dollars for the support of the candidate who takes over. Netflix co-founder Reed Hastings, one of the party's largest donors, told the "Financial Times" that the president should "step aside to allow a strong Democratic leader to take on Trump."
The money is supposed to pave the way. At a conference in Colorado, Ari Emanuel, one of Hollywood's most powerful figures and a major donor to the Democrats, said Biden's withdrawal would only accelerate if financing was cut. "The elixir of a campaign is money," Emanuel, whose brother Rahm is Biden's ambassador to Japan and former chief of staff to President Barack Obama, said. "And maybe the way will only be clear when the money runs out." We will see in the coming weeks where the money goes. Many donors are currently considering channeling their funds into Senate and House races.
Warnings of a "civil war"
However, there are also warning voices among the donors. Some fear that every step to replace Biden with one of the governors could ignite a "civil war" among the Democrats. In these circles, Vice President Harris is considered a less controversial choice.
Charles Myers, Chairman of Signum Global Advisors and significant donor, warned of "deep rifts" among Democrats for the possibility of a new race. A open Democratic Party convention in Chicago in August – where a candidate is determined by voting in the plenum – could also be infiltrated by left-wing Democrats like Alexandria Ocasio-Cortez from New York, as some wealthy donors warned.
Copyright The Financial Times Limited 2024
Joe Biden's closest donor and bundler expressed concerns about the President's campaign, stating, "Biden's campaign is doomed," despite his admiration for the President. This donor suggested a shift in focus towards finding a potential successor.
Vice President Kamala Harris is also being considered as a potential replacement by Democratic donors, with preparations underway to raise significant funds for a new candidate.
