Then they lose the war chest. They can keep the war heart as long as Kamala stays on the ticket. At least that’s my understanding. Otherwise the money has to be sent back to the donors and re-donated.
This is incorrect.
She and him officially on are on a joint ticket, which means the committee belongs to both of them. She will be able to continue using the committee and the dollars in/from it if he lets her (which, given that he endorsed, is a formality).
No other candidate could directly use that money. A lot of it could be moved through the dnc to state parties back into presidential efforts or federal efforts. A lot of it could be moved through C3s/C4s. This issue was overblown.
Mash below.
Click on the "current version of statement of organization". Notice it has both of their names.