Former President Barack Obama delivered a sharp rebuke to Democrats at a private fundraiser hosted by New Jersey Gov. Phil Murphy on Friday, urging the party to "toughen up" and take action against President Donald Trump’s agenda.

Speaking at an intimate event in Red Bank, New Jersey, which raised $2.5 million for the Democratic National Committee, Obama called for courage and focus as Democrats navigate a challenging political landscape.

"You know, don’t tell me you’re a Democrat, but you’re kind of disappointed right now, so you’re not doing anything," Obama declared, according to excerpts obtained by CNN of the former president's remarks. "No, now is exactly the time that you get in there and do something."

The former president expressed frustration with Democrats’ complaints about the lack of a clear party leader, dismissing their inaction as self-indulgent

"I think it’s going to require a little bit less navel-gazing and a little less whining and being in fetal positions," he said. "And it’s going to require Democrats to just toughen up."

Obama emphasized the importance of two off-year governor’s races in New Jersey and Virginia, describing them as critical opportunities to build momentum for the 2026 midterms.

In New Jersey, Democrats have nominated Rep. Mikie Sherrill, a former Navy officer and federal prosecutor, to replace the term-limited Gov. Murphy.

Republicans selected Trump-backed former Assemblyman Jack Ciattarelli, who lost the 2021 gubernatorial race to Murphy.

In Virginia, former Rep. Abigail Spanberger faces off against Lt. Gov. Winsome Earle-Sears, as voters are set to elect the state’s first female governor.

Obama sounded the alarm, telling Democrats to "stop chasing messiahs" and back their candidates.

"Stop looking for the quick fix," he told the crowd. "Stop looking for the messiah. You have great candidates running races right now. Support those candidates."

He urged Democrats to equip the DNC for a "more data-driven, more social media-driven cycle," emphasizing the need for resources and expertise.

"Don’t say that you care deeply about free speech and then you’re quiet. No, you stand up for free speech when it’s hard. When somebody says something that you don’t like, but you still say, ‘You know what, that person has the right to speak.’ … What’s needed now is courage," Obama said.

Obama also addressed internal party debates, rejecting the idea that progressive ideals and practical governance are at odds.

He criticized restrictive zoning laws that block affordable housing, calling out "not in my backyard" attitudes.

"I don’t care how much you love working people. They can’t afford a house because all the rules in your state make it prohibitive to build. And zoning prevents multifamily structures because of NIMBY," he said. "I don’t want to know your ideology, because you can’t build anything. It does not matter."

The former president, who has been selective in his public appearances since Trump’s return to power, warned that the country is "dangerously close" to autocracy and criticized the administration’s tariff policies and intimidation tactics.

He called on institutions like law firms and universities to resist.

"What’s being asked of us is make some effort to stand up for the things that you think are right. And be willing to be a little bit uncomfortable in defense of your values. And in defense of the country. And in defense of the world that you want to leave to your children and your grandchildren,” Obama said.

As Obama tries to light a fire under his party, let’s not kid ourselves—he’s part of the reason Democrats are in this mess.

The DNC’s coffers might be fuller after this $2.5 million shindig, but money alone won’t fix a party that’s lost touch with the working-class voters it claims to champion.

It’s going to take more than pep talks to turn the Democrats' ship around. His blunt words in New Jersey signal a Democratic Party at a crossroads, grappling with its identity and strategy in the face of a resurgent Trump administration.

The clock’s ticking, and the midterms are coming fast.

With key races in New Jersey and Virginia on the horizon, the question remains: can Democrats heed Obama’s call to toughen up and mount an effective counteroffensive?