Clashes, confusion and secrecy consume the Harris campaign's finances
By: NBC News
S E E D E D C O N T E N T
Nov. 14, 2024, 10:00 AM UTCBy Natasha Korecki
If Kamala Harris' campaign was known for anything, it was its blockbuster fundraising. In just a matter of months, it crossed the $1 billion mark, in a stunning and record-breaking pace.
Now, less than a week since the vice president conceded the contest, it not only has run out of money, it's still asking for more. The campaign emails and texts, known for their ubiquity throughout the election, aren't expected to stop anytime soon.
"Hi Team, It's Kamala, The election isn't what we wanted, but I will never give up the fight," a text message sent Tuesday said. "And right now there are still a number of critical races across the country that are either too close to call, or within the margin of recounts or certain legal challenges."
Two campaign officials said the requests are for money meant to eventually flow to the Democratic National Committee to help assist with efforts such as state recounts or curing ballots.
One of the officials acknowledged there was some debt but downplayed its significance, saying itwould not be difficult to pay off by year's end. The official also stressed that, given the results of the election, it would have been worse to have lost while sitting on a pile of unspent cash.
But several campaign officials questioned that contention, saying it appeared the requests were meant to pay down debt. One senior campaign official called the practice of asking supporters for more moneyafter losing decisively and having taken in so much money as "appalling" and another described it as "disgusting." A third person who was flooded with complaints from donors questioned how Democrats could save their credibility moving forward.
The overarching challenge at this point for what is left of Harris' campaign is that the financial picture is shrouded in mystery — even for those within the organization. No one can — or will — spell out a clear status of its finances. Reports have surfaced about debt that's reached into the tens of millions of dollars — a narrative that's taken on a life of its own in conservative media and, much to the dismay of donors, even brought a troll from Donald Trump over X.
"Whatever we can do to help them during this difficult period," Trump teased on X.
The campaign on Wednesday said it is an inaccurate characterization of the debt. One senior official flatly stated in an interview this week: "That's completely wrong."
Five sources with direct knowledge of the campaign's internal finances confirmed to NBC News that it has indeed accrued debt. But none could point to a specific amount; several people threw out possibilities, with the lowest beginning at $6 million.
"If there is any debt, it will be minimal, and addressed in the immediate weeks and months, not the long term," another campaign official said Wednesday. Invoices were still coming in, as were donations. The full report may not come into focus until January.
In one bright spot, the Democratic National Committee, which operates as a separate entity, is not carrying debt.
"The DNC will have no deficit from the campaigns and is in fact financially in a very healthy situation," Chris Korge, DNC finance chair told NBC News.
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It isn't unusual for a campaign to close out a contest carrying some debt. What is unusual is the pace of the expenditures after record-breaking fundraising, some senior officials said.
What is even more unusual are the explosive clashes taking place in and around the Harris campaign universe. Interviews with more than a dozen campaign officials and allies reveal a deep distrust of leadership, questions over payments to consultants and celebrities, as well as anger over what they say was a pervasive lack of transparency over finances and analytics. The sources were granted anonymity to speak about internal campaign dynamics.
The campaign both publicly and internally had warned it was a margin-of-error race. But many of those interviewed said they were shocked by the debt and that their briefings predicted either a win or a protracted fight over ballot counting.
Amid fresh anger and frustration over Harris' loss to Trump last week, several campaign officials heard something that took them by surprise: third parties were showing interest in purchasing the campaign's email list.
That is how some senior members of the campaign learned that their organization, which had fundraised a record-breaking $1.4 billion since late July, was actually in debt, according to two people privy to internal campaign discussions.
The requests have all been shut down and two Harris campaign officials told NBC News that the email list is not for sale.
But the second dynamic that has unfolded and is likewise bringing heat from donors and other campaign officials are the fundraising requests that have not ceased.
Some aides expressed frustration in interviews, saying they had crafted language for ongoing requests for money but that they were intended for a prolonged counting effort post election night.
"We had some emails pre-scripted for a long fight," a senior campaign official close to the strategy said.
Meanwhile, a cast of donors are perplexed over how the money was spent and are second-guessing the campaign's decisions to hold high-dollar, celebrity appearances and concerts in the closing days of the race.Celebrities themselves were not paid, but there were associated costs with regard to production and travel, a campaign source said.
One of Harris' largest events, in Houston, featured pop star Beyonce (who ultimately did not perform, despite officials initially saying she would). Jennifer Lopez spoke to Harris supporters in Las Vegas. Musical artist Cardi B appeared at a Harris rally in Milwaukee where she slammed Trump. Bruce Springsteen performed in Philadelphia for Harris while Mumford & Sons played a set at a Madison rally.
There was also a $1 million expenditure to Harpo Studios for productions costs tied to an Oprah Winfrey interview with Harris in October.
The "Unite for America" program was streamed across most mainstream platforms, including the YouTube, Facebook, TikTok, Twitch and Instagram accounts for both Harris and Winfrey. And combined, the pair have a reach of more than 133.6 million followers across their platforms, one news report stated at the time.
Donors have leveled complaints about transparency of the spending to campaign officials, according to three Harris sources. The officials said they were at a loss over how to respond because they, too, said they were kept in the dark over the state of the finances as well as Harris' winning prospects.
"I always knew we could lose," a senior member of the team said. "I was never prepared for us to lose the night of the election."
Another source who has frequent contact with donors complained of a lack of transparency from the campaign, saying, "I feel misled."
Campaign leadership has been in contact with donors attempting to allay some concerns, according to a person with knowledge of the discussions.
But the bigger issue, the source who has been in contact with donors said, is that the dynamics are risking the party's credibility with donors moving forward.
"They have to feel like they have a say and they don't. They feel pushed aside," the person said. "What will happen with them, honestly? They'll all take a hike for the midterms."
Natasha Korecki
Natasha Korecki is a senior national political reporter for NBC News.
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A billion and still in debt..........betting on the come isn't always a good idea
Really insane mismanagement. Keep her as far away from the budget as possible
And this was the candidate that claimed she could fix the economy.
Blockbuster fundraiser? Ain't that just a polite name for a political prostitute?
Seems like Kamala Harris learned how to manage spending from Joe Biden. Just imagine what Harris could have accomplished with the Federal credit card.
You do understand that you definition would apply to the other candidate as well....
Yep, thank God thinking people voted accordingly.