A bombshell report from the New York Times is pulling back the curtain on serious financial and leadership problems inside the Democratic National Committee, where insiders say the organization is struggling to function — let alone compete with Republicans heading into the 2026 midterms.
More than 24 people within the party spoke to the Times, describing an institution burdened by debt, internal distrust, and a chair whose behavior has reportedly become a growing concern. DNC Chair Ken Martin is said to have grown increasingly isolated and paranoid, with staff describing what they call a “bunker” mentality taking hold at party headquarters.
The situation reportedly came to a head in early July, when Martin threw a phone at a desk during a heated exchange with a junior aide. The incident prompted a formal complaint to the DNC’s human resources department and a subsequent meeting with HR officials to address his conduct. Staff have also raised concerns about a pattern of confrontations and fears over internal leaks making their way into the press.
Even some of Martin’s own supporters have acknowledged his erratic behavior. He reportedly confronted senior staff over suspicions of internal scheming, and assurances were reportedly given to allies during mid-July meetings that top congressional Democrats would not seek to remove him.
On the financial front, the picture is equally troubling. The DNC is reportedly carrying roughly $2 million in debt and has been unable to direct funds to congressional campaigns. In an unusual move, the committee is said to be asking vendors to hold off on submitting bills until after the 2026 midterms — a sign that the organization is struggling to keep up with its obligations at a time when it should be ramping up field operations and outreach.
The contrast with Republicans is stark. A super PAC tied to Donald Trump reportedly holds $400 million, and the Republican National Committee has close to $130 million in the bank. Democrats, meanwhile, are still reeling from a crushing 2024 loss to Trump that is estimated to have cost the party around $1 billion — leaving major donors stunned and pulling back.
Analysts warn that if Democrats fall below a D+5 margin on the generic congressional ballot, Republicans are well-positioned to hold onto Congress. That leaves little room for the kind of dysfunction and financial mismanagement now being reported inside the DNC.
Spending decisions have also drawn criticism. Martin has pushed investments in state party organizations, but detractors point out that roughly $840,000 was directed to territories like Guam and the Virgin Islands — contests that have no bearing on control of Congress.
Looking further ahead, the DNC also carries responsibility for organizing the 2028 presidential primary, including setting the primary calendar, scheduling debates, and planning a national convention — tasks that require a stable and well-funded operation.
Martin’s public profile has also faded. He has largely been absent from mainstream media since April, with only limited appearances outside of local coverage. Critics also point to his reluctance to release a full after-action review of the 2024 campaign as a political miscalculation, particularly given widespread voter concern over Joe Biden’s age and health, which ultimately led to Biden stepping off the ticket.
The bottom line, according to the Times report: while Republicans continue to build their financial and organizational strength, Democrats are fractured, cash-strapped, and wrestling with a leadership crisis that, if left unresolved, could make 2026 another difficult election night for the party.
