Following President Joe Biden's announcement that he will not seek reelection, questions have arisen regarding the fate of his substantial campaign funds. As of the end of June, Biden's campaign boasted a formidable war chest totaling $240 million, with $95.9 million residing in his campaign account alone, as per the latest Federal Election Commission data.
If Vice President Kamala Harris assumes the role of the official nominee, she would inherit control of the existing campaign account in accordance with FEC regulations. In the event of an open race, the Biden-Harris campaign could transfer all available funds to the Democratic National Committee, as FEC guidelines allow unrestricted transfers from candidate committees to national party committees.
The DNC would then have the flexibility to utilize these funds to support a new nominee, as well as allocate resources to various down-ballot candidates and allied committees. However, the DNC's spending and contribution activities would be subject to FEC regulations governing national party committees.
Alternatively, Biden's campaign could be transformed into a political action committee (PAC), enabling it to maintain control over its war chest. Nevertheless, operating as a PAC would mean adhering to FEC rules for PACs, which impose a $5,000 limit on contributions, significantly constraining the distribution of the substantial cash reserves.
As a PAC, Biden's funds could be directed towards independent expenditures, such as extensive advertising campaigns to bolster other candidates, including a potential new presidential contender. Notably, the new PAC would be prohibited from coordinating these spending endeavors with any supported candidates and would encounter less favorable advertising rates.
