The Democratic National Committee is circling the drain.

Unlike the Republican National Committee, which had no debt and $128.53 million in cash on hand at the end of last month, the DNC under the leadership of Chairman Ken Martin had only $16.3 million on hand and was over $18.5 million in debt.

'The result of fraudulent activity by an external third party.'

According to the New York Times, the Democratic Party is so desperate, it has begun asking vendors to put off sending invoices until after the midterm elections.

In its desperation, the DNC had to post something near and dear as collateral in order to secure a $15 million loan from Amalgamated Bank in October — a loan that was reportedly timed to enable seven-figure financial transfers to then-gubernatorial candidates in Virginia and New Jersey.

NOTUS, citing D.C. deed records, highlighted that the DNC actually put up its physical headquarters at 430 South Capitol Street in Southeast D.C. as a security — but did not explicitly note the building's use as assurance in the relevant FEC filings.

This evidently prickled those elements within the DNC that have turned on the DNC chairman, who was described last year by party officials as "weak and whiny."

"Ken gaslighting us about the DNC's finances and not being transparent about the financial situation makes us doubt if he can oversee the DNC during the most important primary of our lifetime," one DNC member said, according to NOTUS.

A DNC official said in a statement obtained by NOTUS, "This is not new. The loan documents were publicly released in November, and the DNC's building was also used as collateral in our prior lines of credit in 2019, 2018, 2014, and many other years."

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Martin tried to paint lipstick on this donkey in a July 20 blog post, stating, "So why does the DNC have less cash on hand than some expect? Because we made a conscious decision to invest money in the work required to win in 2025, 2026, and beyond. We are converting the cash we raise into electoral assets: more people, earlier organizing, better technology, and stronger state parties."

"A larger bank account does not knock on a door, register a voter, recruit a candidate, or protect the vote," Martin wrote. "We have chosen to build. We are replacing a boom-and-bust campaign model with permanent political infrastructure. We are not choosing between winning now and building for the future. Our investments are designed to do both."

Despite his practiced ability to cast failure in a positive light, Martin, who took over the DNC in February 2025 and whose term is supposed to end in 2029, is fast running out of friends and beginning to crack under the pressure.

Multiple sources described to the New York Times an incident earlier this month where Martin, "in a pique of frustration," allegedly threw his phone at the desk of a junior aide while reprimanding the individual. Martin and the DNC declined the Times' invitation to comment on the matter.

Around the DNC headquarters, which has been staked as collateral, Martin has allegedly been making dark jokes about his ouster and expressing concerns about leaks and a potential mutiny.

"Ken needs help — H-E-L-P," former acting DNC chairwoman Donna Brazile told the Times. "And if he's reluctant to say it, I'm here to help him ask. It's hard. It's very difficult."

Some Democrats are publicly calling for Martin to throw in the towel.

California Rep. Sam Liccardo (D), for instance, tweeted on Sunday, "Ken Martin must resign. As Democrats, we have become too captured by failing strategies. We must fail forward, and pivot. The urgency of this moment will not reward — and our children will not forgive — torpidity."

The DNC's humiliation was compounded further this week by the revelation that besides the $75,000 or more the organization is paying in interest on the $15 million October loan, it was scammed out of nearly $29,000 last year, reportedly by an email scammer pretending to be Martin.

A senior FEC campaign finance and reviewing analyst issued a request to the DNC on July 8, 2025, for information pertaining to a "misdisbursement" totaling $28,860.92 referenced in a monthly report that "appears to be related to an apparent unauthorized disbursement of Committee funds."

The DNC said in response that the "identified transaction was the result of fraudulent activity by an external third party."

A committee staffer received a fraudulent email from an unknown individual claiming to be Martin in February 2025 — just days after Martin became chairman — and made a hefty payment to the fraudster, NOTUS reported.

The DNC promptly reported the transaction to its bank, Wells Fargo, but was reportedly able to recover only $7,000 of the cash. The staffer is no longer with the DNC, according to NOTUS.

"This was a one-off mistake that was promptly caught and addressed, and no similar issues have occurred since," DNC spokeswoman Mia Ehrenberg said.

In addition to throwing away money it can't afford to lose, the DNC is grappling with the party's historic unpopularity.

According to an Economist/YouGov poll conducted last month, 54% of Americans hold an unfavorable opinion of the Democratic Party. Among those over 29, the numbers are even worse for the party.

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