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NYC Campaign Finance program under scrutiny
New York City's public campaign finance program, designed to level the playing field for candidates, is under scrutiny after the indictment of Mayor Eric Adams. Prosecutors allege Adams misused the system by accepting illegal donations to secure public matching funds. FOX 5's Morgan McKay explains how the program works and how it’s responding to these allegations.
NEW YORK - The recent indictment of New York City Mayor Eric Adams has increased scrutiny of the city's public campaign finance system, with prosecutors alleging that Adams exploited the program by accepting illegal donations and using them to receive additional taxpayer funds.
Allegations Against Mayor Adams
In 2021, Mayor Adams’ campaign raised $19 million, $10 million of which came from public matching funds. Federal prosecutors allege that Adams accepted illegal donations from foreign donors, using a straw donor scheme to further increase his campaign's matching funds.
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The public funds are intended to help candidates who may not have wealthy backers run for office by matching donations from New York City residents at a rate of $8 for every $1 contributed.
Mayor Adams has pleaded not guilty to the charges. Despite the indictment, those running the campaign finance program assert that safeguards are in place to catch bad actors, pointing to the case as proof the system is working.
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"Straw donor schemes or other types of fraud, they're really rare everywhere in the United States," said Paul S. Ryan, Executive Director of the New York City Campaign Finance Board. "And when they happen, they are usually caught."
According to Ryan, ongoing audits and direct communication with donors help detect fraud in the system.
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The program, which has been in place for over 30 years, aims to ensure that everyday New Yorkers, not just those with rich backers, can run for office. For donations up to $175 for council races and $250 for citywide campaigns, the city matches the contributions using taxpayer funds.
Expansion of Public Campaign Finance Programs
New York State is now running a similar public campaign finance program, marking its first election cycle using this system. Donations between $5 and $250 are eligible for matching funds.
Both the state and city programs include audits and other measures to prevent fraud, though McGrath acknowledged that post-election audits at the state level are less frequent and campaigns are randomly selected for review.
"It's the first cycle and we look forward to looking back on it to see what worked well, what could be changed," McGrath said.