But as Biden tries to put the committee’s millions back in As for Harris’ remaining money, Republican lawyers and operatives say “not so fast.”
For weeks, Democratic lawyers and operatives — who spoke on the condition of anonymity to discuss the party’s internal deliberations — have argued that nominating Harris as the Democratic nominee was the easiest move for the party. Rather than encouraging a field of candidates to compete at an open convention and triggering a rush for financial support, they argued that nominating Harris would avoid many legal headaches because her name already appears on the Federal Election Commission filings that organized Biden’s campaign committee.
Hours after Biden announced his decision, the commission attempted to make the transfer to Harris official — submitting an amended filing to the FEC changing her name to “Harris for President.”
Several campaign finance lawyers close to Republicans argue that the campaign does not have the legal authority to do this — and that the move will likely be challenged before the FEC or in court.
Charlie Spies, a prominent campaign finance lawyer for the Republican Party, said Biden and Harris would both need to be formally nominated by the Democratic Party at its convention next month before any transfer of power could take place. In that situation, he noted, a provision of campaign finance law allows a vice presidential candidate to take control of the campaign’s filing if the presidential candidate withdraws.
“Biden can’t transfer his money to Harris because it was raised under his own name, and there’s no legal mechanism for it to have been raised jointly with Harris before they were their party’s nominees,” said Spies, who advised the Republican National Committee before leaving that role earlier this year.
The six-member FEC panel that must rule on such issues has long been evenly split between Republicans and Democrats, often preventing enforcement of campaign finance rules. That partisan divide raises the possibility that commissioners could reach an impasse over whether Harris can take control of campaign funds. If that were to happen, several attorneys said, the potential challenge would likely end up in court.
“Replacing a presidential candidate and handing over his committee to someone else is a first under current campaign finance law,” Sean Cooksey, a Republican who chairs the FEC, said Sunday. “It raises a host of open questions about the legality of the practice, the limits that apply and the rights of donors.”
Dara Lindenbaum, a Biden-appointed FEC commissioner, took a dissenting view: “The Biden for President Committee is the campaign committee for President Biden and Vice President Harris,” she said. “The funds stay with her as long as she remains on the ticket.”
Biden’s decision to step aside and let a younger generation of Democrats lead the party is likely to trigger a wave of contributions. For Democrats, this gold rush couldn’t come at a more important time. New filings with the FEC late Saturday showed that Donald Trump’s committees reported having more cash on hand than Biden’s, erasing the huge financial advantage the president once enjoyed, with Biden’s efforts burning through cash much faster than Trump’s.
While some voters, delegates and donors are excited about Harris’ candidacy, others are hoping to see strong competition for the nomination no later than the Democratic National Convention in August. A number of young Democratic stars have been mentioned as potential contenders for the top spot or vice presidential spot, including Pennsylvania Gov. Josh Shapiro, Michigan Gov. Gretchen Whitmer, California Gov. Gavin Newsom, Arizona Sen. Mark Kelly and Kentucky Gov. Andy Beshear.
Four years ago, during her own presidential campaign, Harris struggled to raise money and ultimately withdrew before a single vote was cast. On Friday afternoon, she held a conference call with some of the party’s top donors on Biden’s behalf. But she showed up about 30 minutes late and was available for only a few minutes. The group had been convened by Reid Hoffman, a tech executive and major Democratic donor, and expected to have a more interesting and informative conversation.
“Basically all she said was we’re going to win,” one donor said. “Everyone was furious after the call. It was a complete waste of time.”
The source noted that some California donors have long been disappointed with Harris, feeling she is unprepared for the White House. Many of the party’s major donors, she added, are hoping Harris will now move to the center — rather than the left — and be more receptive to hearing from a broader range of voices on technology and regulatory policy.
After Biden endorsed Harris on Sunday, some major Democratic donors said they believed the party and its big backers. would consolidate behind the vice president.
“I think the party supports her,” said Susie Tompkins Buell, a San Francisco philanthropist and co-founder of the Esprit clothing line. She added that the mood is changing, even among other major party backers who were initially reluctant about Harris.
“This moment of relief and freedom has suddenly put them behind Kamala,” Buell said. “Everyone is very excited to get to work to make sure this candidate has the time, energy and money to make this happen. It’s a beautiful thing.”
Hoffman endorsed Harris on X: “Kamala D. Harris is the right person at the right time,” he wrote. “Donald Trump and J.D. Vance are promising an agenda that will wreak havoc on the American people. Harris’ experience and leadership on economic growth, fighting for bodily autonomy, and protecting our democracy put her in a unique position to push back against Trump’s extremism.”
Several campaign finance lawyers have pointed out that under federal election guidelines, when a presidential candidate withdraws from the race, the dollars in his or her campaign account are typically are considered “excess campaign funds” that can be donated to the Democratic National Committee or an independent expenditure committee.
Another potential problem is that, under federal limits, presidential candidates can raise $3,300 for their primary campaign and can also raise $3,300 for the general election. But if they withdraw or lose before they can get into the general election campaign, they are required to return those contributions to donors — as Hillary Clinton did when she lost the 2008 primary to Barack Obama.
Because Harris’ name was on Biden’s campaign committee documents — and because she would still run in the general election if she becomes the party’s nominee — former FEC Chairman Trevor Potter said he doesn’t think Harris would have to return those contributions in the general election.
But, Potter added, “it’s never been tested because we’ve never had a situation like this.”
Joshua Dawsey contributed to this report.
