Money Talks Loudly

Kamala Harris has proven to be a formidable fundraiser. This bodes well not only for her chances at the Democratic National Convention, where she is expected to be confirmed as the party's candidate but also for her prospects in the November election if her candidacy is confirmed at the end of August. Joe Biden's decision to step out of the campaign increasingly appears to be a well-calculated move. This development will have an impact not only on America, regardless of the outcome of this year's presidential campaign in the United States.

Immediately after Joe Biden announced his intention to withdraw from the race, US Vice President Kamala Harris began reaching out to delegates of the Democratic National Convention, scheduled for the end of August. These contacts seem to position her well for securing the Democratic Party’s nomination.

Harris’s entry into the race significantly alters the campaign landscape. Now, Donald Trump, a white male, a former well-known entrepreneur, and a person defending himself against legal accusations in court, will face Harris—a 20 years younger black woman of Asian descent who was a highly successful Attorney General of California. This stark contrast in background, gender, generation, and life experience has effectively nullified all the achievements of the first half of this election campaign.

Of course, Harris has immediately gained tremendous advantages, primarily within her own party. The internal Democratic conflicts over the question "If not Biden, then who?" have become a thing of the past. Harris has secured overwhelming support from the delegates of the upcoming convention, mainly due to this striking contrast with Trump. But that's not the only reason.

Previously, Harris had many opponents within her party, but now she has received strong support from prominent Democrats, even those who were considered direct competitors on the eve of the party convention. Former Secretary of State Hillary Clinton delivered a fully supportive speech, which will undoubtedly bring in millions of votes from female voters. Governors Gavin Newsom of California, Andy Beshear of Kentucky, and Gretchen Whitmer of Michigan have clearly endorsed Harris. Whitmer even announced her readiness to become the co-chair of Harris's campaign. They seem to have united to overcome the internal party crisis.

Sum of Votes

All this has influenced the mood of the Democratic convention delegates. Of course, much of the delegates' support was shaped by President Joe Biden’s call for party members to back Harris. According to the law, Biden must remain in office until the end of his term on January 20, 2025. However, some spokespeople from the opposing political camp have suggested that the current president, after withdrawing from the race, should also step down from office for the same reasons he cited in his statement.

So, a poll by the Associated Press indicates that Harris has the support of 2,538 prospective delegates, significantly more than the 1,976 votes needed to secure the nomination. The timeline is already known – the party will nominate its candidate by August 7, according to the chair of the Democratic National Committee, Jaime Harrison.

In her public speeches following Joe Biden’s announcement, Kamala Harris has begun promoting her key campaign slogans, drawing on her record as Attorney General of California and later as a US Senator: "I have taken on wrongdoers of all kinds. Predators who brutally harmed women, fraudsters who cheated consumers, cheats who broke the rules for their own gain... So, hear me when I say I know Donald Trump’s type. In this campaign, I will proudly pit my record against his."

Naturally, Trump’s team has tried to harshly criticise Kamala Harris, as well as Joe Biden. But riding the wave of enthusiasm from the fact that the 59-year-old Kamala Harris appears more active and powerful compared to the 78-year-old Donald Trump, she has begun effective fundraising. And it’s not just that larger sums of money will allow for a more successful campaign, but the amounts raised also clearly demonstrate support from both voters and businesses.

Domestic issues will undoubtedly play a significant role during the race – particularly the fight for the middle class's well-being and tackling illegal immigration. However, the threat from China in East Asia and Russia’s war of aggression against Ukraine in Europe will also be major points of discussion during the campaign.

Donations Matter

According to Harris’s team, she raised $81 million within 24 hours of Biden's withdrawal, the highest amount in a single day in the 2024 campaign for both sides. Interestingly, most of these were small donations, as Harris’s team reports that 888,000 people contributed within the first 24 hours. That’s a significant number.

On the same day, Future Forward, the largest political action committee (PAC) supporting Democrats, announced it was ready to commit $150 million in resources from donors who were previously inactive, uncertain, or uncommitted. These are major donors contributing substantial sums to election campaigns.

The influx of small donors hasn't stopped either: campaign data indicates that of the 1.1 million unique donors who contributed within the first 36 hours of Harris's candidacy announcement, 62% were first-time donors.

Interestingly, there was a transfer of campaign funds from the Biden-Harris campaign to Harris and her future running mate – the amount being $96 million. Unaffiliated lawyers tend to view this transfer as legal, as Harris was part of the original pair for whom the funds were raised. Lawyers close to Trump’s team consider it unacceptable and are threatening legal action.

As of the evening of July 25, according to opensecrets.org, Kamala Harris had $294.2 million in her campaign committee and $130.96 million in external funds. Donald Trump, in comparison, had $216.86 million in his campaign committee and $233.4 million in external funds. The gap is slowly closing. While Trump has exhausted his fundraising capabilities and will likely find it harder to raise more funds, Harris appears to be just beginning her efforts.

For instance, well-known high-tech investors Reid Hoffman and Ron Conway, who are helping to raise funds for Kamala Harris's campaign, are actively seeking contributions in Silicon Valley. They are personally convincing some donors to switch their support from Trump to Harris, and they are receiving positive responses.

For example, Netflix co-founder Reed Hastings gave a $7 million cheque to Harris’s support committee, despite recently criticising Joe Biden's decision to run for re-election: "Biden needs to step aside to allow a dynamic Democratic leader to defeat Trump and ensure our safety and prosperity."