Overview
New York City’s campaign finance program is a national model for democratizing elections. By matching small-dollar donations with public funds and enforcing spending limits, the system empowers everyday New Yorkers to run for office and compete on a more level playing field.

Yet, as campaign dynamics change, so too must the rules that govern them. One of the greatest challenges facing the current system is the growing influence of independent expenditures (IEs)—unaffiliated third-party spending that operates outside traditional campaign finance limits.

The Challenge
Under current law, if a non-participating candidate spends beyond the legal limit, public matching funds participants are granted flexibility to remain competitive. However, this flexibility does not apply to independent expenditures, even when those expenditures dramatically shift the balance in a race.

This creates two major issues:

• Participants under attack by IEs cannot respond effectively, because they are still bound by their original spending cap—even if outside groups flood the race with attack ads.
• Candidates backed by IEs gain an unfair advantage, as their opponents are left unable to match the combined reach of a campaign and its third-party supporters.

As a result, the influence of unregulated outside money undermines the City’s efforts to protect fair and competitive elections.

Proposed Reform
To close this gap, the proposed legislation would adjust expenditure limits for publicly financed candidates when independent spending in a race crosses a substantial threshold. This would allow candidates—regardless of whether they are being attacked or outpaced—to raise and spend additional private funds in order to maintain a fair footing.

Importantly:

• This reform does not increase public matching funds.
• It applies uniformly across all candidates in the affected race.
• It ensures that publicly financed campaigns can respond to real-world conditions without compromising the principles of transparency and equity.

Why This Matters
The matching funds system was built to protect the voice of everyday New Yorkers—not amplify special interests. As the influence of outside spending grows, this reform ensures that the City’s most accountable candidates aren’t left powerless in the face of unlimited, unregulated third-party money.

By allowing thoughtful, limited flexibility, New York City can protect its campaign finance system’s fairness and future—ensuring that it continues to serve candidates, voters, and democracy alike.

Status
This proposal is currently under review.