Shortly after announcing the end of his campaign Sunday afternoon, President Joe Biden's campaign quickly transferred his campaign funds to Vice President Kamala Harris. They did this by renaming the original Biden for President FEC filing as "Harris for President."
Here's where the war begins. The Biden campaign just filed a notice to the FEC that Kamala is no longer the VP candidate and changed the name (it appears of the committee) - look for the GOP to challenge this. pic.twitter.com/qjDlOaAqod
— Justin Hart (@justin_hart) July 21, 2024
But was that transfer legal? The current FEC chairman seems skeptical.
11 C.F.R. § 110.1(b)(3):
— Sean Cooksey (@SeanJCooksey) July 21, 2024
"If the candidate is not a candidate in the general election, all contributions made for the general election shall be either returned or refunded to the contributors or redesignated ..., or reattributed ..., as appropriate."
Writing in the Wall Street Journal shortly after the first presidential debate in June, Republican election attorney Charlie Spies outlined the legal complications of Biden leaving the race before receiving the nomination at the DNC convention.
Campaign finance rules create an incentive for Mr. Biden to stay in the race through the Democratic National Convention in August. At that point, but not before, Mr. Biden would be able to transfer his campaign’s anticipated $100 million war chest to Vice President Kamala Harris, assuming that she, too, is still on the ticket.
If Mr. Biden drops out before the Democratic Party formally makes him its nominee, then Federal Election Commission rules dictate that no more than $2,000 of any campaign funds that he raised may be transferred to any other candidate, including Ms. Harris. The Federal Election Campaign Act governs what a presidential campaign may do with “excess campaign funds,” which is what the money left in the Biden for President campaign will legally be considered if he is no longer a candidate. Those excess funds may be contributed in an unlimited amount to the Democratic National Committee or an independent expenditure committee. Presidential campaigns may also contribute such funds to other federal campaigns, subject to contribution limits, which are $2,000 per election.
In short: Before the nomination officially goes to Mr. Biden, his campaign is limited to donating $2,000 to the Democratic nominee, whether that new standard bearer is Gavin Newsom, Gretchen Whitmer or Ms. Harris.
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Former House Speaker Kevin McCarthy believes the transfer of funds should be challenged in court.
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