$96 Million Question... Can Harris Use Biden's Political Funds?

Foreign Media: "Low Legal Risk as Running Mate"
Possible Lawsuit from Republican Candidate
52.8 Billion Won Raised in 7 Hours...Complexity if Third Candidate Nominated

U.S. President Joe Biden announced on the 21st (local time) that he is withdrawing from the Democratic presidential race, amid growing controversy surrounding the existing political funds amounting to $96 million (approximately 133.3 billion KRW).

The New York Times (NYT) raised questions about whether Vice President Kamala Harris could use Biden’s campaign funds if she becomes the Democratic presidential candidate. While the legal transfer of campaign funds is straightforward, some experts view it as a politically complex issue.

Kamala Harris, Vice President of the United States
[Photo by AFP Yonhap News]

Since President Biden and Vice President Harris were running mates, NYT and The Wall Street Journal (WSJ) explained that the transfer of campaign funds is unlikely to pose legal problems.

Dara Lindenbaum, a Federal Election Commission member appointed by the Democratic Party, stated that Harris can use the campaign funds because she is included in the registration statement of the Biden-Harris campaign committee. Hans von Spakovsky, an election law expert at the conservative Heritage Foundation, also explained this to CNN.

However, the Republican National Committee is reportedly keeping open the possibility of filing lawsuits related to the transfer or use of Biden’s campaign funds, according to NYT. For example, if a new campaign is created for Vice President Harris and individuals who have already donated the legal maximum of $6,600 (approximately 9.16 million KRW) to the Biden-Harris campaign donate again to the Harris campaign, lawsuits could be filed for exceeding contribution limits. Issues could also arise if Biden’s campaign funds are used before Harris is officially nominated. NYT explained, "Even if such lawsuits do not stop the campaign, they could disrupt the push for a new Democratic candidate and further highlight the party’s turmoil."

Sean Cooksey, a Federal Election Commission member appointed by the Republican Party, posted on his social media platform X (formerly Twitter) the election law stating that if a candidate is no longer running in an election, all contributions made for that candidate must be returned or refunded to donors, redesignated, or, where appropriate, reattributed. This provision generally applies when a candidate drops out of a primary.

Cooksey told NYT, "What happens next is an open question," adding, "This is an unprecedented event and not a legal issue that can be easily resolved."

Derek Muller, an election law professor at the University of Notre Dame, told CNN that he expects lawsuits over the campaign funds. He said, "Because Vice President Harris’s name is on the (Biden campaign) paperwork, most believe she can receive the funds. However, this is not a consensus view."

Vice President Harris effectively began her campaign on the same day, sending fundraising text messages to solicit support. That afternoon, the Biden campaign filed documents with the Federal Election Commission to change the campaign name from "Biden for President" to "Harris for President."

Following President Biden’s withdrawal, donations to the Democratic Party have surged. Kenneth Pennington, a Democratic strategist, announced that within seven hours of the withdrawal announcement, $38 million (approximately 5.28 billion KRW) was raised on ActBlue, the Democratic donation management site. This is the largest daily online donation amount for the Democrats since the 2020 election.

Currently, Vice President Harris is considered the most likely Democratic presidential candidate, but if she is not nominated, the situation could become more complicated. The Biden-Harris campaign must send the remaining funds to the Democratic National Committee or super PACs (political fundraising organizations). Alternatively, all funds may need to be refunded to donors, and the new candidate would have to start fundraising from zero dollars.