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WASHINGTON (WUSA9) -- The Vincent Gray campaign reports that 1.1 million dollars has been raised for the Mayor's re-election with most of that still in the bank for the last two weeks before the April first democratic primary.

Some insiders admitted today that the campaign has been hurt badly by Jeff Thompson's allegations that the Mayor participated in a shadow campaign. But Ward 7 Councilmember Yvette Alexander today was adamant that Gray stay in the race and that Gray can still win.

"Nothing else, this has made them support him even more," she says.

Thompson and the U.S. Attorney yesterday also claimed for the first time that a close friend to the Mayor was paid 40,000 for home improvements. A source tells WUSA9, that friend was the Mayor's former girlfriend Linda Green. She has not returned our calls. There was no answer at the door today.

Mayor Gray said yesterday he did not know about a $40,000 home improvement project or another $10,000 that prosecutors say Thompson paid to a close Gray relative after the campaign.

WUSA9 spoke to a number of close Gray insiders and they say the Mayor has to turn the State of the District address scheduled for 7:00 p.m. to the State of the Campaign Address. He has got to convince voters that he did not do anything and he still the guy they voted for.

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