March 08, 2025 | 2:00 PM EST
The Democratic Party's fundraising juggernaut, ActBlue, is in imploding. Once heralded as a revolutionary platform that mobilized billions in small-dollar donations, ActBlue is now grappling with internal chaos, mass resignations, and a barrage of investigations from Republican-led congressional committees. Reports of potential money laundering, fraudulent donation practices, and connections to untracked government funds have cast a dark shadow over the organization's future. As scrutiny intensifies, questions are mounting: What did ActBlue's leadership know, and when? And how will progressive NGOs (non-government organizations), heavily reliant on ActBlue's infrastructure, survive in 2025?
Based on recent news reports and posts on X, the crisis is unfolding and may have broader implications for fundraising and nonprofit organizations.
The Exodus of Leadership
The unraveling of ActBlue began in late February 2025, when at least seven senior officials abruptly resigned, plunging the organization into turmoil. According to a letter from ActBlue's unions, cited by The New York Times, the departing officials included customer service and partnerships directors who had served for over a decade, as well as the associate general counsel, the chief revenue officer, and other key figures. The unions described this mass exodus as an "alarming pattern" that was "eroding our confidence in the stability of the organization."
The most ominous development came from Zain Ahmad, the last remaining lawyer in ActBlue's general counsel's office. Before his access to email and internal platforms was cut off, Ahmad reportedly wrote in an internal Slack message on February 26, 2025, "we have Whistleblower Policies for a reason." This statement, which was later deleted, has fueled speculation about internal dissent and potential wrongdoing within ActBlue. Ahmad is now on leave, leaving the organization without legal counsel at a critical juncture.
Congressional Investigations and Allegations of Misconduct
ActBlue's internal chaos coincides with intensified scrutiny from Republican-led congressional committees. House Oversight Committee Chairman James Comer and House Administration Committee Chairman Bryan Steil have launched investigations into what they describe as "potentially fraudulent and illicit financial activity" linked to ActBlue's fundraising practices.
Chairman Bryan Steil’s committee has probed ActBlue over lax security measures that may have allowed illicit foreign money to flow to American political campaigns
One of the most serious allegations centers on "smurfing"—a practice where large donations are broken down into smaller contributions under different names to conceal their true origins, potentially violating campaign finance laws.
In October 2024, the U.S. Treasury Department flagged hundreds of suspicious transactions linked to ActBlue, according to a memo obtained by The New York Post. These transactions raised concerns about money laundering, identity theft, and the use of "straw donors"—individuals whose names are used without their knowledge to funnel donations.
Steil has further alleged that foreign actors from countries like China, Russia, Iran, and Venezuela may be exploiting ActBlue's lax donor verification policies to influence U.S. elections.
Until recently, ActBlue did not require Card Verification Value (CVV) codes for online transactions, a standard security measure used by most e-commerce platforms to prevent fraud. This vulnerability, critics argue, made ActBlue an easy target for illicit contributions. In response to mounting pressure, ActBlue began requiring CVV codes for new credit card donations in 2023, but questions remain about the extent of past abuses.
James Comer speaks at a press conference. "Republican-led congressional committees are intensifying their investigations into ActBlue's fundraising practices. Getty Image
The USAID Connection and Untracked Trillions
Adding fuel to the fire, posts on X and reports from conservative outlets like The Geller Report have raised questions about ActBlue's ties to U.S. government funding. One X user, @amuse, claimed, "Funding from USAID to Democrat-controlled NGOs stopped flowing in January around the same time small dollar donations on ActBlue suddenly disappeared. By February seven top ActBlue executives suddenly resigned.
What did they know and when did they know it?" While these claims remain unverified, they have gained traction among critics of ActBlue.
More explosively, there are allegations that the Department of Government Efficiency (DOGE), recently granted access to the U.S. Treasury system, discovered trillions of dollars in unlinked appropriations—funds disbursed without clear congressional authorization.
If true, this could suggest systemic misuse of taxpayer money, potentially funneled through NGOs and political organizations like ActBlue. However, these claims are speculative at this stage, and no concrete evidence has been presented to substantiate them. The lack of transparency in federal spending, combined with ActBlue's opaque operations, has only deepened public skepticism.
The Fallout for Democratic Fundraising
ActBlue's implosion could not come at a worse time for the Democratic Party. Since its founding in 2004 by Benjamin Rahn and Matt DeBergalis, ActBlue has been a cornerstone of Democratic fundraising, raising over $13.7 billion for candidates and causes as of June 2024. The platform revolutionized grassroots fundraising by enabling small-dollar donors to contribute easily to campaigns at all levels, from school boards to the presidency.
As digital fundraising consultant Tim Tagaris told The Geller Report, "If [ActBlue] disappeared, it would be an absolute disaster for Democratic Party fundraising."
The internal chaos and ongoing investigations threaten to undermine donor confidence and disrupt the flow of funds to Democratic campaigns. Moreover, the potential loss of funding from USAID and other sources could jeopardize the survival of progressive NGOs, many of which rely on ActBlue's infrastructure to sustain their operations.
One observer noted on X, "It will be interesting to see how many progressive NGOs survive into next year."
Critical Perspectives and Unanswered Questions
While the allegations against ActBlue are serious, it is important to approach them with a critical eye. The investigations are led by Republican lawmakers, raising questions about political motivations, especially in the lead-up to the 2024 election cycle. ActBlue has denied all allegations of wrongdoing, describing them as "disinformation" and emphasizing its compliance with campaign finance laws. The organization has also pointed to its robust security measures, though critics argue that these measures were implemented too late to address past vulnerabilities.
The departure of senior officials and Ahmad's whistleblower comment suggest internal strife, but the specific reasons for the resignations remain unclear. Were these officials fleeing a sinking ship, or were they pushed out as part of a broader restructuring? And what, if anything, does Ahmad's cryptic Slack message imply about ActBlue's operations? Without more transparency, speculation will continue to fill the void.
In conclusion, ActBlue's implosion is a seismic event in American politics, with far-reaching implications for the Democratic Party and progressive causes. As investigations deepen and public trust erodes, the organization faces an existential crisis.
The potential misuse of taxpayer funds, combined with allegations of money laundering and foreign interference, could lead to criminal charges—a possibility hinted at by investigative journalist Lara Logan, who wrote on X, "ActBlue was the creation of David Brock... For too long, they have gotten away with political warfare and lawfare, not to mention fraud & theft & money laundering. Question is…which crime will they be charged with first?"
For now, the future of ActBlue—and the broader Democratic fundraising machine—hangs in the balance. As the dust settles, one thing is certain: The fallout from this scandal will reshape the political landscape for years to come.
Sources and Links
The Geller Report: "ActBlue in CHAOS: Democrat Money Laundering Giant is Imploding As Top Staff Rush For The Exits" Link: https://gellerreport.com/2025/03/actblue-in-chaos-democrat-money-laundering-giant-is-imploding-as-top-staff-rush-for-the-exits.html/
The New York Times: "ActBlue, the Democratic Fund-Raising Powerhouse, Faces Internal Chaos" Link: https://www.nytimes.com/2025/03/05/us/politics/actblue-democrat-fundraising-resignations.html
The Gateway Pundit: "Democrat Fundraising Powerhouse ActBlue Facing 'Internal Chaos' As At Least Seven Senior Officials Resign" Link: https://www.thegatewaypundit.com/2025/03/democrat-fundraising-powerhouse-actblue-facing-internal-chaos-as/
The New York Post: "Hundreds of transactions linked to Dem fundraising platform ActBlue flagged by banks, found by Treasury: GOP memo" Link: https://nypost.com/2024/10/29/us-news/hundreds-of-transactions-linked-to-dem-fundraising-platform-actblue-flagged-by-banks-found-by-treasury-gop-memo/
Posts on X by @amuse and @laralogan
X's AI Grok was used in the generation of this article.
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