The Democratic National Committee’s internal crisis has reached a critical point, as its cash reserves dry up.

The Democratic Party has been in disarray since its blistering losses in the 2024 elections. Issues haven’t let up in recent months, with the DNC being consumed by leadership infighting. The poor fortunes of the organization extended into their finances, with cash flows drying up.

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Federal records showed the DNC’s cash reserves shrank by $4 million from January to April, compared to the Republican National Committee’s coffers, which grew by about $29 million over the same period. The DNC entered May with $18 million, while the RNC entered with $67.4 million.

The decline is partly due to big donors withholding their money — just three people donated $100,000 or more to the DNC from January to April.

“People invested more money than they ever had before [in 2024], they dug deeper than they ever had, and they are quite frustrated by the result,” DNC Chairman Ken Martin said. “They want answers. I don’t take it personally. I wasn’t in charge.”

The party’s finances have gotten so bad that its leadership is in talks to borrow money to keep operations going, two people familiar with the discussions told the New York Times.

Analysts believe the decline in finances is due to a parallel decline in the Democratic Party’s image. A leadership battle between former DNC Vice Chairman David Hogg and Martin consumed the energy of the organization for nearly two months.

“This is worse than some high school student council drama,” Rep. Mark Pocan (D-WI) told the outlet.

Rufus Gifford, finance chairman for former Vice President Kamala Harris’s 2024 presidential campaign, told the New York Times that the timing of the leadership battle could hardly have been worse.

“What they are seeing is headline after headline of incompetence and infighting, and I think that is a real problem not just for the DNC but for the larger Democratic brand,” he said. “We need to come together and focus on the issues at hand. That’s got to happen now. And I mean today. And if that can’t happen, we need to shift course.”

Despite the worrying signs, most Democrats are sticking behind Martin, in particular praising his work ethic. He’s traveled to nearly half the 50 states during his opening months as chairman, soliciting contributions from donors along the way.

Though his performance as chairman has been viewed satisfactorily by many within the party, he’s been burdened by heavy self-doubt. An audio recording released earlier this month by Politico, showing a May 15 Zoom meeting, showed a heavily demoralized Martin choking up and questioning his ability to keep leading the party.

“I’ll be very honest with you, for the first time in my 100 days on this job … the other night I said to myself for the first time, I don’t know if I want to do this anymore,” he said, speaking with Hogg and other DNC officers.

Martin voiced frustration with the treatment of other head officers in recent power struggles and the position it put him in.

“I’m just quite frustrated with the position I’m in. … No one knows who the hell I am, right? I’m trying to get my sea legs underneath me and actually develop any amount of credibility so I can go out there and raise the money and do the job I need to put ourselves in a position to win,” Martin said, speaking to Hogg. “And again, I don’t think you intended this, but you essentially destroyed any chance I have to show the leadership that I need to. So it’s really frustrating.”

Hogg was removed from his position as vice chair on a technicality earlier this month. He opted not to run again.

RANDI WEINGARTEN AND LEE SAUNDERS QUIT THE DNC IN LATEST UPHEAVAL

Martin also has his fair share of critics within the party. Randi Weingarten, the influential leader of the American Federation of Teachers, and Lee Saunders, president of the American Federation of State, County, and Municipal Employees, refused to continue as at-large members of the DNC. They pointed to issues with Martin’s leadership after

“While I am proud to be a Democrat, I appear to be out of step with the leadership you are forging, and I do not want to be the one who keeps questioning why we are not enlarging our tent and actively trying to engage more and more of our communities,” Weingarten said to Martin in her resignation letter.