The Biden campaign and the DNC will join hands to raise the limit of donations they can receive from individual donors to $620,000 per donor.
The news comes as the Biden Victory Fund filed an agreement with the Federal Election Commission alongside the DNC. The agreement will allow wealthy donors to donate more money to the joint body than the previous limitation. All funds from donors will be shared between the Biden campaign, the DNC, and twenty-six state parties.
Generally, the maximum amount an individual donor can give to a campaign is $5600. However, this agreement with the FEC will allow the body to receive up to $620,000 per donor. The new amount is nearly 110 times the previous limit.
The reason behind this move is to match President Trump’s fundraising network. The Trump campaign was using the same method to raise money. The Biden campaign and the DNC can now use the same tactics to get money from donors and create a level playing field.
Biden Campaign’s Fundraising Efforts During the Primaries
The Biden campaign’s fundraising was underwhelming during the primaries. Senator Sanders, Senator Warren, and Mayor Pete started the year with more campaign funds than Biden.
For a candidate who was previously the vice president, not raising as much money as a rookie Mayor was a point of concern.
Once Biden became the presumptive Democratic nominee, his relations with donors improved vastly. His campaign committee fundraising alone totals to over $132M now, a far cry from the $9M he had during the start of the year.
Why is the Biden Campaign’s Partnership in Fundraising with the DNC Important?
This partnership between Biden and the DNC is crucial. The Trump campaign is already using the same method to raise money. As of now, the president is ahead of Biden in fundraising numbers. Both Biden and the DNC would hope the numbers improve as they can now receive more money from individual donors.
The money Biden and the DNC collect can also be used by 26 state parties who also signed on in the same agreement with the FEC. The Trump campaign’s small donor funds amount to 65% of the total money raised. Biden’s small donors contribute just under 40% of his campaign’s funds.
The Progressive View
The progressive view on this is crystal clear. More money in politics is a foundational reason those in power don’t work for the people who elect them. While Joe Biden and the DNC might claim they only exploited a loophole to fight on equal ground with Trump, they Won’t endear themselves to their real base with such actions.
Working-class people are the heart of the Democratic coalition. Hillary Clinton’s neo-liberal, corporatist, and technocratic approach drove the working class away from the Democrats in 2016. Biden could walk into the same trap Hillary did in 2016 and appear too close to the corporate wing of the party. The Democrats need to turn up their base in November, not give them reasons to stay at home.