Debt-ridden Democrats tap a surprising asset as collateral for $15M loan

As nan Democratic National Committee (DNC) shouldered important indebtedness and fell down its GOP equivalent, Democratic activity decided to usage its office arsenic collateral for a $15 cardinal loan, according to nationalist records.

The loan, first reported by NOTUS news outlet, was taken retired successful 2025 arsenic nan DNC struggled to support gait pinch nan Republican National Committee’s fundraising efforts up of nan midterm elections.

While taking retired loans up of high-stakes races is common, and utilizing spot arsenic collateral to do truthful is not unheard of, nan statement of in installments secured by nan DNC was nan largest ever taken retired by nan committee for an off-year election, according to NOTUS. The position of nan indebtedness let nan DNC to retreat an further $5 cardinal beyond nan $15 cardinal it already has taken, nationalist records show.

"This is not new," a DNC charismatic told Fox News Digital Monday of nan loan. "The indebtedness documents were publically released successful November, and nan DNC’s building was besides utilized arsenic collateral successful our anterior lines of in installments successful 2019, 2018, 2014 and galore different years."

Democratic National Committee Chairman Ken Martin speaking from nan DNC's location studio. (Bill Clark/CQ-Roll Call, Inc via Getty Images)

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What is new, however, is nan DNC’s sizeable debt.

The financial spread betwixt Democrats and Republicans, arsenic good arsenic nan former's higher-than-usual indebtedness load, could time off nan DNC pinch little elasticity to support candidates successful nan midterm elections. The nationalist party’s indebtedness and smaller rate reserves could limit its expertise to respond quickly, put broadly and compete pinch nan GOP’s acold larger warfare chest, a boon to conservatives who are presently struggling successful nan polls.

As of June 30, nan DNC has $18.5 cardinal successful indebtedness against conscionable $16.3 cardinal successful rate connected hand, according to run finance records. For comparison, nan DNC ended 2022, nan erstwhile midterm cycle, pinch $30.5 million successful rate against astir $420,000 successful debt.

The Republican National Committee, by comparison, had $128.5 cardinal successful rate pinch nary indebtedness arsenic of June 30, per Federal Election Commission records.

That nan DNC is utilizing its office arsenic collateral for a indebtedness isn't needfully a motion that nan statement is successful its decease throes. The Democratic Congressional Campaign Committee, different awesome statement tally by nan party, utilized each of its assets arsenic collateral for a $20 cardinal statement of in installments successful 2024, per a national filing.

"Ken gaslighting america astir nan DNC’s finances and not being transparent astir nan financial business makes america uncertainty if he tin oversee nan DNC during nan astir important superior of our lifetime," an anonymous DNC personnel told NOTUS.

The DNC’s dense indebtedness load has been accompanied by immoderate cuts to spending.

For one, nan DNC will not beryllium making its accepted transfers to House and Senate run committees.

Democratic National Committee chair Ken Martin, opinionated alongside Illinois Gov. JB Pritzker astatine an arena successful Chicago connected Aug. 5, 2025, pledges Democrats "won't backmost down" arsenic they push backmost against mid-decade redistricting efforts by President Donald Trump and Republicans (DNC)

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Over 2025 and into 2026, nan RNC has consistently outraised nan DNC and has maintained a overmuch larger warfare chest. Other nationalist Republican committees, specified arsenic nan National Republican Senatorial Committee, person besides raised much than their Democratic counterparts.

The financial outlook for Democrats isn’t each bleak. Individual Democratic candidates moving successful cardinal elections, specified arsenic nan Senate races successful Georgia and Ohio, person raised importantly much money than Republican counterparts.

Amid its financial troubles, nan DNC has made moves to tighten nan lips of its leadership. Axios, citing 2 sources familiar, precocious reported that nan statement asked its activity squad to motion nondisclosure agreements up of a gathering astir nan party’s finances.

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Democratic National Committee (DNC) Chair Ken Martin said to DNC members aft nan gathering was adjourned. (Fox News Digital/Paul Steinhauser)

Decisions for illustration that, however, person not stopped nan leaks from coming retired of nan DNC.

One root told NOTUS that Democratic Party chair Ken Martin has had problem convincing donors to make maximum donations, hamstringing efforts to raise ample amounts of money. Other sources precocious told The New York Times that Martin had a fresh of rage successful which he threw his telephone astatine an aide’s desk.

"It pisses maine disconnected erstwhile I spot leaks retired of this building," Martin reportedly told staffers successful May, according to nan Times. "No much of that s–t. No more."

Despite nan criticism, Martin remains publically optimistic astir nan DNC’s finances.

"The existent DNC has raised nan astir money of immoderate DNC without nan White House successful nan 198-year history of nan Democratic Party," he wrote successful a July 20 Substack article. "Through June 2026, this DNC reported full receipts of much than $207 million. During nan comparable 18-month play of nan past Trump-era cycle, erstwhile Democrats were besides retired of nan White House and rebuilding toward a midterm election, nan DNC reported $109 million."

Internally, however, immoderate unit do nary stock Martin's assessment.

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"They conscionable person nary money, and nary clear way to either salary disconnected their indebtedness incurred by Ken," 1 root acquainted pinch DNC fundraising told nan Washington Post successful April.

The New York Times precocious reported that nan DNC asked vendors it worked pinch nary to nonstop it bills until aft Election Day, which nan committee defended arsenic modular practice. DNC activity has besides faced scrutiny for spending astir $1 cardinal successful statement activity successful U.S. territories, constituencies that will yet person nary base connected nan result of nan midterm elections, contempt being strapped for cash.