NYS lawmakers near deal to change public campaign financing restriction, sources say

ALBANY — State lawmakers have agreed to a deal to tweak the rules around public financing of political campaigns, according to sources — although perhaps not as dramatically as some good-government groups had feared.

The changes, which  will be tucked into a state budget agreement, would change a restriction on donations of $250 or more, sources said.

Current law says that if a donor gives more than $250 to a candidate, the donation isn’t eligible for state matching funds. Though details were still being finalized, a source close to the negotiations said the deal will change that to allow someone to give up to $1,000 with the first $250 counting toward matching funds.

Earlier this month, lawmakers were discussing eliminating a maximum limit altogether, an idea watchdog groups criticized as potentially increasing the influence of large-scale donors.

Another change would require legislators to spend all of their public matching funds in their current campaign or pay back to the state any unused amount, the source said.

Gov. Kathy Hochul, the State Senate and Assembly are near an agreement on an overall budget, which will tally beyond $250 billion. The spending plan was supposed to be in place April 1, the start of New York’s fiscal year, but Hochul delayed it to try to get legislators to include a slew of non-budgetary policy changes.

New York State instituted a public financing mechanism for campaigns in 2019. Backers said it would diminish the influence of big donors, help more challengers mount campaigns and make elections more competitive. The system took effect for the 2024 campaigns and generated participation from many Republican and Democrat candidates.

Those who want matching funds have to show backing to jump-start the process. Currently, for example, candidates for Assembly must raise $6,000 from at least 75 residents in their district before they qualify for matching funds. In the Senate, it is $12,000 from 150 residents.

If qualified, a sliding formula roughly means a legislative candidate could receive $1,050 for the first $100 in private donations; the ratio declines after that.

Two years ago, the Senate and Assembly passed a bill that would have altered the law to end the $250 restriction and make it harder to qualify by raising the minimum number of individual donors required. Hochul vetoed it.

By Yancey Roy

yancey.roy@newsday.com@yanceyroy