AOC-affiliated Democratic Socialists of America has gone broke
The Democratic Socialists of America (DSA), a left-wing group closely aligned with Rep. Alexandria Ocasio-Cortez (NY-14) and other notable congressional figures, is currently grappling with severe financial difficulties.
This crisis threatens the stability of the organization, potentially leading to significant job cuts, as Fox News reported.
A report indicates that the DSA, which counts Ocasio-Cortez among its members, is experiencing a substantial "financial crisis."
Drastic Measures Proposed
Leaders within the DSA have put forward a proposal to alleviate the situation by reducing staff-related expenses by $500,000.
This proposal, coming from the group's national political committee, suggests initially requesting voluntary departures from both director-level and bargaining unit staff, coupled with severance packages.
"If necessary, we will then explore initiating lay-offs according to the DSA union's contract," the proposal states.
The organization's financial woes, first brought to light by the New York Post, have left leaders with little choice but to consider these drastic cost-cutting measures.
The Depth of the Crisis
DSA members Alex Pellitteri, Kristin Schall, and Laura Wadlin, in the proposal, noted, "DSA is in a financial crisis, and staff-related costs account for 58% of our total expenditures and 72% of our projected income."
"The current deficit will force us to make 7-figure budget cuts. This will require us to make painful decisions that will impact all levels of the organization.… Given our current financial state, we do not believe we can have a healthy, democratic, and effective organization while spending the amount we currently do on staff," they elaborated.
The proposal also outlines the responsibility of the organization's personnel committee in determining the positions eligible for layoffs or buy-outs.
When approached for a comment by Fox News, neither the office of Ocasio-Cortez nor the DSA offered an immediate response.
DSA's Controversial Stance on International Issues
The DSA has been in the news recently, not only for its financial troubles but also for its response to international events.
The organization's handling of the October invasion of Israel by Hamas sparked controversy and led to the departure of one of its founding members, Maurice Isserman.
"I left to protest the DSA leadership's politically and morally bankrupt response to the horrific Hamas Oct. 7 anti-Jewish pogrom that took the lives of 1,400 people, mostly civilians, and saw over 200 hostages carried off to Gaza, both groups of victims including children and infants," Isserman expressed.
He criticized the DSA's failure to mention or condemn Hamas in its Oct. 7 statement.
Isserman wrote, "Its statement on Oct. 7 made no mention -- let alone offering any criticism -- of Hamas, declaring instead, 'Today's events are a direct result of Israel's apartheid regime -- a regime that receives billions in funding from the United States,'"
The DSA boasts membership from various Democratic lawmakers, including Reps. Rashida Tlaib of Michigan, Cori Bush of Missouri, and Greg Casar of Texas.