An internal memo from the Democratic Socialists of America (DSA), a political party that boasts at least four US congress members, reveals the group is experiencing significant budget shortfalls. In response, officers from its National Political Committee (affiliated with its “Marxist Bread and Roses caucus”) have proposed budget cuts, firings, and other acts of austerity to buoy the organization—actions that the group’s members condemn when practiced by private businesses.
“We will cut $500,000 from staff-related expenses. We will first ask for volunteers from both director-level and bargaining unit staff to have their position cut and receive severance,” read a proposal from ranking members of the DSA’s National Political Committee, according to the New York Post. “If necessary, we will then explore initiating lay-offs according to the DSA union’s contract,” they added.
The proposal—written by DSA officers Alex Pellitteri, Kristin Schall, and Laura Wadlin—claims the group is in a “financial crisis” and notes that “staff-related costs account for 58 percent of our total expenditures and 72 percent of our projected income.”
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Their text goes on:
“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.
If necessary, we will then explore initiating lay-offs according to the DSA union’s contract. Be it resolved: The Personnel Committee will be responsible for determining the quantity and type of positions to be eligible for buy-out or layoff, and they will assist with logistics and a staff transition plan.”
In a different post, the DSA officers say: “No one would be considering layoffs if the deficit weren’t so extreme. But now that we are in this crisis, we can’t fix it by hollowing out the organization. If we don’t reduce staff costs, Democratic Socialists of A won’t be a place where anyone wants to work — or organize.”
Meanwhile, some prominent Jewish activists in the socialist scene claim that DSA leadership has brought this problem on itself by allying with Hamas-aligned, pro-Palestine groups, which they say has alienated many donors and members, thus hurting the group’s revenue.
“DSA long ago fell into the trap of becoming so radical in the name of ‘justice’ that they abandoned the mission of the progressive movement,” said Amanda Berman, founder and executive director of Zioness, a progressive pro-Israel group.
The DSA has supported the anti-Israel Boycott, Divestment, and Sanctions (BDS) movement for years. That movement is particularly polarizing to Jewish activists, as they actively convince companies and countries to cease all business transactions with Israel, home to some 7.2 million Jews.
Berman claims that an argument over Rep. Jamaal Bowman’s (D-NY) visit to Israel sowed the seeds of discord that led Jewish members to expose the group for allegedly “bleeding activists and financial resources.”
However, DSA leaders deny this is the cause for the deficits, and claim that the organization’s allegiance with the pro-Palestine movement, which is immensely popular on youth-centric platforms like TikTok, should have bolstered the group’s member rolls.
The officers took to the pages of “The Call,” published by “Bread and Roses,” to express their confusion:
“But how did this decline in revenue, membership, and overall excitement happen in the first place? This should actually be a really favorable time for DSA. We’re living in a moment when revived labor struggles and the fight for a free Palestine are galvanizing so many Americans, particularly young people.
Biden’s disastrous policy of fueling Israel’s genocide in Gaza has created the kind of space for an independent alternative from the Democratic Party that has not existed since [Independent Vermont senator and former presidential candidate] Bernie [Sanders].”
Shane Devine is a writer covering politics, economics, and culture for Valuetainment. Follow Shane on X (Twitter).
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