Biden's withdrawal from the presidential race causes a surprising surge in donations in a matter of hours.

Kamala Harris is poised to inherit the Democratic Party's large campaign funds, but there are legal issues to consider.

July 22nd 2024.

Biden's withdrawal from the presidential race causes a surprising surge in donations in a matter of hours.
The Democratic online fundraising platform, ActBlue, experienced a surge in donations after President Joe Biden announced his withdrawal from the race and endorsement of Vice President Kamala Harris. Within just five hours, ActBlue was able to raise an impressive US$27.5 million in small-dollar donations.

In response to Biden's announcement, the Biden-Harris campaign quickly amended their filings with the Federal Election Commission (FEC) to officially rename their principal committee and declare Harris as a candidate for president. This move has significant implications, as it means that if Harris remains on the ticket for the general election, she could take control of the nearly US$96 million cash in hand that the Biden-Harris campaign had at the end of June.

According to Trevor Potter, founder and president of the Campaign Legal Centre, this is possible because Biden and Harris share a campaign committee. If Harris becomes either the presidential or vice-presidential nominee for the Democratic party, she can continue to use the existing funds for the general election. This was one of the reasons why many political observers saw Harris as a practical replacement for Biden, as her name was already on the campaign account.

Both conservative election law expert Hans von Spakovsky and Federal Election Commissioner Dara Lindenbaum have publicly stated that Harris would have access to the funds raised through Biden's principal campaign committee. Lindenbaum, a Democrat and swing vote on the commission, wrote, "If Kamala Harris becomes the Democratic Party nominee, she gets access to the Joe Biden campaign funds." However, a different Democratic presidential nominee for the general election would not have the same access to these funds.

In this unprecedented situation, there may be questions and challenges surrounding the money raised for the general election account now that Biden is no longer running. Republican FEC chairman Sean Cooksey wrote in a blog post that there is a campaign finance regulation that could require donations to be returned or refunded to donors. However, he did not address the issue of Harris already being on the campaign account.

Craig Engle, a former lawyer for an FEC commissioner, believes that it will be a challenge for the campaign to navigate this situation. He stated, "A campaign cannot keep money for an election the candidate isn't running in." Engle also noted that there is a "gray area" regarding whether Biden could return the funds to his general election donors and encourage them to give it directly to Harris.

It is possible that the Biden campaign will seek guidance from the FEC through an advisory opinion in the coming weeks. Another option could be for Biden to transfer the campaign account's balance to the Democratic National Committee or a super PAC. This would allow Harris to start a new campaign account and potentially reach out to donors who had already given the maximum amount to the Biden-Harris campaign.

Derek Muller, an election law professor, believes that there will likely be litigation surrounding this issue, as campaigns often spend money before the FEC or courts make final decisions. He stated, "I think there's going to be litigation about it. I think the general consensus view is that because Harris's name is already on the paperwork, she can accept it for the general election. However, this is not a universal view."

As of now, the FEC has not responded to requests for comment on this matter. It will be interesting to see how the Biden-Harris campaign handles this situation and what implications it may have for the upcoming election. Stay tuned for updates and catch all the action of the 2024 Olympic Games live and free on Channel 9 and 9Now, with ad-free and 4K coverage on Stan Sport.

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