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Donors have pulled back in the wake of Democrat failures and as the Trump administration aggressively pursues its right-wing agenda.
President Donald Trump has only been in office for a month, but some donors and liberal groups are retreating and demoralization has set in as they struggle to fight the pace of the new administration, according to a report.
While it is common for fundraising to drop off in the immediacy of a presidential defeat, and dial up again ahead of the midterm races, Democratic donors, strategists and activists told the New York Times that they believe this time, it’s different.
“No one is giving until they see a plan for how we are going to better navigate this unprecedented situation and stop acting like this is a normal administration,” Alexandra Acker-Lyons, a political consultant close to Silicon Valley donors, told the Times.
Another Silicon Valley strategist, Cooper Teboe, told the outlet that major donors confided that they were temporarily pausing donations “out of fear of political retribution.”
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While Trump has not yet come after liberal groups and campaigners, Democrats fear he will make good on campaign threats of retribution.
“We don’t know if he’s going to go after people,” Teboe told the newspaper, relaying what his donors had told him. “We do not want to be on the top of that list. We’re going to hold off and see if he really is, or if it’s all bluster.”
Jeff Skoll, a donor who has given millions to Democratic candidates, is a longtime friend of Elon Musk, who wields enormous power through his proximity to Trump and leading the Department of Government Efficiency. Skoll did not vote in the 2024 election and said there was “an awful lot of pressure” to side with the president.
The Times noted that Skoll met with Democratic Senate leader Chuck Schumer in Palm Beach, Florida, last week and discussed “the prospect of Mr. Schumer’s using Mr. Skoll to back-channel ideas to the president.”
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“There are people who were absolutely against Trump, never Trumpers, who fear that they’ll be retaliated against and they’ll have to leave the country,” Skoll told the Times. “Folks who wish to oppose him — it may take some time before they gather up the courage.”
There remains some frustration among donors about the $1.5 billion that the Harris campaign burned through in the failed race against Trump, according to the Times.
Donors want to know what Democrats plan to do differently next time, with some reportedly demanding more details about targets and plans of campaign groups before they contribute.
Some advocacy groups, meanwhile, are laying off staff in the wake of the new administration.
Human Rights Campaign, the biggest LGBTQ group in the U.S., has undergone a “strategic restructure” by laying off 20 percent of its staff, the Advocate reports. One of the Democratic party’s most influential think tanks, the Center for American Progress, has also cut 22 roles this month, according to the Times.
