AOC-affiliated Democratic Socialists of America faces dire 'financial crisis' that could lead to layoffs

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Rep. Alexandria Ocasio-Cortez spoke with voters at a tele-town hall on Monday where she fielded questions about her and other progressive lawmakers efforts to pressure President Biden to rein in Israels retaliation over Hamas Oct. 7 attack.

A left-wing group affiliated with Rep. Alexandria-Ocasio Cortez, D-NY, and other prominent congressional members is facing a dire cash crunch that could lead to people losing their jobs, according to a report.

The Democratic Socialists of America (DSA), of which Ocasio-Cortez is a member, is staring down a significant "financial crisis" that has forced some leaders to put forth a drastic proposal to protect its bottom line. 

"We will cut $500,000 from staff-related expenses," a proposal propelled by individuals on its National Political Committee says. "We will first ask for volunteers from both director-level and bargaining unit staff to have their position cut and receive severance."

"If necessary, we will then explore initiating lay-offs according to the DSA union's contract," the members wrote. 

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Rep. Ocasio-Cortez is perhaps the most well-known member of DSA, which is allegedly facing a financial crisis. ( (Photo by Lev Radin/Pacific Press/LightRocket via Getty Images))

The organization's financial troubles, which the New York Post first reported, allegedly put the leaders in a position where they have no option but to slash their budget, potentially leading to job losses among their ranks.

"DSA is in a financial crisis and staff-related costs account for 58% of our total expenditures and 72% of our projected income," DSA members Alex Pellitteri, Kristin Schall and Laura Wadlin wrote in the proposal.

"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 added.

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Ocasio-Cortez is a member alongside a handful of others in Congress, such as Reps. Rashida Tlaib, Cori Bush and Greg Casar. (Photo by Drew Angerer/Getty Images)

"If necessary, we will then explore initiating lay-offs according to the DSA union's contract," the proposal continued. "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."

Ocasio-Cortez's office and the DSA did not immediately respond to Fox News Digital's requests for comment.

Since Hamas' brutal invasion of Israel in October, the DSA has garnered headlines over its response to the attack. One of its founding members, Maurice Isserman, subsequently left the group over their actions.

"I left to protest the DSA leadership's politically and morally bankrupt response to the horrific Hamas October 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 wrote in late October.

A founding member of the Democratic Socialists of America condemned the organization and cut ties with it over its response to Hamas attacks on Israeli citizens. (DSA photo by Spencer Platt/Getty Images, Hamas photo Chris McGrath/Getty Images)

"Its statement on October 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,'" he said.

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In addition to Ocasio-Cortez, other Democrat lawmakers are members of the group, including Reps. Rashida Tlaib of Michigan, Cori Bush of Missouri and Greg Casar of Texas.