Democratic power players split on Virginia blame game, midterm

Democratic Party officials and donors are split over whom to blame for losses in several state-level races this month – and they’re also divided over how the party can recover going into the 2022 midterm congressional elections.

The biggest losses came in Virginia, including Republican Glenn Youngkin’s triumph over former Gov. Terry McAuliffe in the gubernatorial election. In New Jersey, several Democrats lost in local races while Gov. Phil Murphy overcame a tougher-than-expected challenge from Republican Jack Ciattarelli. 

Several wealthy donors have signaled they are done fundraising for and contributing to the Democratic National Committee, which is the political arm of the White House when a Democrat is president, and assists in campaigns across the country.

These donors believe the DNC didn’t do enough to help their favored candidates, especially McAuliffe, according to people familiar with the matter. Some of the people who commented for this story declined to be named out of fear of seeing retribution from party leaders.

John Morgan, a Florida based businessman who has raised and contributed to Democrats for years, was among a group of donors who told CNBC earlier this month that they’re done giving to the DNC, and may hold back on financing the Democratic Congressional Campaign Committee if House Speaker Nancy Pelosi, D-Calif., decides to retire. The DCCC is the campaign arm for House Democrats, who are fighting to keep their majority.

“I will never give another penny to DNC. If Pelosi does not run I will never give another penny to DCCC. I did not sign up to be a socialist,” Morgan, who has hosted McAuliffe for previous fundraising events, said in an email after the recent election losses. “I don’t ever see myself having a fundraiser ever again.”

Data from the nonpartisan Center for Responsive Politics shows Morgan contributed $35,500 to the DNC in August 2020. He was one of Biden’s bundlers during the 2020 election cycle. Pelosi has not indicated whether she will retire ahead of next year’s midterms, when Republicans are expected to take back the House.