As the U.S. political world heads into the midterm elections in Nov., big donors are successively cutting back political contributions, making fundraising difficult. Republicans are in relatively better financial shape than Democrats, but concern is growing as even a longtime friend of U.S. President Donald Trump, who has donated tens of millions of dollars to Republicans, has stopped giving.
According to the New York Times (NYT) on the 4th, Ronald Lauder (82), heir to the cosmetics brand Estée Lauder, who has provided massive political funds to Republicans every year, has not donated a single penny in political funds this year. Election finance records show he has not given to any Republican candidates in New York this year, and the super PAC he has long operated has effectively halted activity.
Lauder also quietly laid off several staffers, including advisers and ad makers from his personal office, with whom he had worked for decades. The reasons for stopping donations are unclear, but Estée Lauder, the family company, saw its share price plunge 77% from its 2021 peak, reducing the value of his equity holdings by at least $1.2 billion, and his adult children were said to have tried to rein in excessive expenditure on politics, art, and philanthropy.
Lauder is a friend of 60 years to President Trump and has donated more than $40 million (about 57.1 billion won) over the past decade for Republicans in state and federal elections. Among New York Republicans, he has been regarded as "like a one-man bank." In the 2022 midterms, he donated $13 million (about 18.6 billion won), which was credited with helping Republicans reclaim the House majority. Lauder is also the father-in-law of U.S. Federal Reserve (Fed) Chair Kevin Warsh.
For Republicans facing midterms that require massive campaign funds, it is a considerable blow. Gerard Kassar, chair of the New York Conservative Party that has aligned with Republicans, said, "There will be no one to replace him financially in New York." The NYT assessed that "Lauder's halt in giving could cause significant reverberations in the conservative movement he has nurtured in New York."
Lauder's side said in a statement that he has worked to "strengthen" New York for years through political giving and philanthropy, adding, "We will continue to devote time, resources, and energy to advancing the principles of democracy and ensuring New York remains a place where citizens, families, corporations, and communities can prosper together." Some Republican figures are hoping Lauder may step in with donations late in this year's election, the NYT reported.
The situation is more serious for Democrats. Earlier, the Wall Street Journal (WSJ) reported on the 2nd that the Democratic National Committee (DNC), the party's campaign control tower, had secured $13.6 million (about 19.4 billion won), only about 12% of the $1.285 billion (about 183.4 billion won) raised by the Republican National Committee (RNC). Democrats are also trailing Republicans in super PAC fundraising.
Democrats, too, are seeing big donors who have bankrolled them for decades turn away. George Soros, called the "godfather of hedge funds," and his son Alex Soros donated more than $400,000 to the DNC in the 2018 midterms and more than $1 million in the 2022 midterms, but ahead of this election they have not given a penny yet.
Not only the Soroses but also other big donors, including LinkedIn co-founder Reid Hoffman, are reportedly hesitating to give. As a result, inside and outside the Democratic Party, there is even a joke that DNC means "Do Not Contribute." The WSJ analyzed that while it is common for a party out of power to face financial difficulties, Democrats' money woes could adversely affect the election as Republicans pour massive funds into expanding organization and TV ads.