Stricter new rules for campaign cash could deal blow to Mayor Adams' reelection bid

As New York City mayoral candidates tout their most recent fundraising tallies, the city’s campaign finance watchdog is poised to clamp down on who is eligible to receive matching funds from taxpayers — with potentially lethal consequences for Mayor Eric Adams’ reelection campaign.

Under proposed rule changes, the city Campaign Finance Board would be required to withhold the public financing program’s generous $8-to-$1 matching funds from candidates who violate specific rules. Those include the failure to submit required disclosure statements or provide documents or records, which Adams’ 2021 campaign repeatedly failed to do. Until now, the board has largely been able to use its discretion to determine a candidate’s eligibility for matching funds, despite most compliance concerns.

Board officials say the proposals amount to little more than bureaucratic housekeeping. But the new rules could have major implications for the Adams campaign, which is already facing scrutiny from state and federal prosecutors while the mayor remains under a five-count federal indictment on charges he allegedly accepted illegal foreign donations and luxury travel benefits from the Turkish government and others in exchange for official favors. Adams has pleaded not guilty in the case.

“As an independent nonpartisan agency, all rules changes proposed by the Campaign Finance Board are in service of making our matching funds program stronger, up to date with elections and fundraising and more responsive to New Yorkers,” said Paul S. Ryan, the board's executive director. “This particular change clarifies existing rules for campaigns to qualify for matching funds, such that if campaigns fail to meet certain criteria they would be ineligible for payment.”

The Campaign Finance Board requested missing documents from Adams' campaign multiple times throughout the 2021 mayoral race. Despite the campaign's failure to respond, the board still awarded Adams $10 million in public matching funds.

According to a draft audit of the 2021 campaign obtained by Gothamist, the missing pieces included requests for information about people who raised money for the campaign — also known as intermediaries — details of certain fundraisers and documentation for some $2.1 million in expenses. The campaign’s response to the draft audit is due Nov. 29.

In the federal indictment against Adams, prosecutors allege he broke the law and violated the program’s rules by accepting illegal foreign donations from straw donors. Among those donors, Gothamist identified Tolib Mansurov as the owner of a construction firm — listed as "Businessman-4" in the indictment — who sought official favors from Adams as recently as 2023. The indictment also alleges that Adams continued to solicit and accept illegal straw donations to his 2025 campaign.

The mayor has denied any wrongdoing. His attorney in the matter, Alex Spiro, has filed to dismiss the bribery charge.

Vito Pitta, an attorney for the Adams campaign, said it raised $190,000 in the most recent fundraising period, which ran from July 12 to Oct. 7 of this year. The effort has raised $4.5 million altogether. About $500,000 of that is potentially eligible for matching funds, which would amount to an additional $4 million in taxpayer dollars. The campaign currently has $3.1 million on hand.

"Mayor Adams' strong support from New Yorkers continues, and the campaign has now raised the maximum amount it can spend in the primary with anticipated matching funds for his reelection far ahead of schedule,” Pitta told Gothamist.

Candidates participating in the program have a $8.3 million spending cap for the primary election. To receive matching funds, mayoral candidates must have raised at least $250,000 from 1,000 New York City residents legally permitted to donate to the campaign.

The additional rules under consideration will be open for public comments through Friday, and the Campaign Finance Board could vote on them as soon as November. If adopted, they would take effect in 30 days, meaning they could affect campaigns hoping to receive the first public funds payment in December.

Pitta did not respond to questions about how the board's rule changes could impact Adams' reelection bid. But several of the mayor’s challengers argue that the board should not award him more public funds.

City Comptroller and mayoral candidate Brad Lander said Adams deserves his day in court, but he does not think the Campaign Finance Board should give the mayor another dollar.

“Eric Adams should not receive campaign finance matching funds when running a corrupt racket of a campaign finance operation,” Lander told Gothamist. “Those are the allegations of the U.S. Attorney of the Southern District.”

Lander raised $330,000 in the most recent period. Altogether, his campaign has raised more than $1 million, with $435,000 in matching claims that could yield another $3.4 million for the campaign. His campaign currently has $280,000 on hand.

Former City Comptroller and mayoral candidate Scott Stringer offered similar reservations about Adams receiving more public funds, though he stopped short of saying the campaign should be denied funds altogether.

“I think the Campaign Finance Board gives you many opportunities to respond to some of their concerns. It’s been the most successful campaign finance program in the country," said Stringer. "So I think anybody who doesn’t respond is foolish."

"At the end of the day, this mayoralty has had serious questions in terms of integrity, honesty," he added, "and it’s clearly contributed to this paralysis in government."

Stringer has raised more than $600,000, including $193,000 in the most recent period. The campaign is submitting more than $300,000 in matching claims for a potential $2.4 million in added public funds. The campaign has $286,000 on hand.

The newest entrant to the mayoral field, state Sen. Jessica Ramos of Queens, raised more than $54,000 for her campaign, including $31,185 potentially eligible for matching claims. That’s below the Campaign Finance Board’s threshold to qualify for public funds payment.

She said as long as Adams is under investigation for “mismanagement of public matching funds,” he should not receive any new public matching money. She added that she hopes the board will “do the right thing.”

A spokesperson for mayoral candidate Zellnor Myrie, a state senator from Brooklyn, declined to weigh in on whether Adams should receive more public matching money.

Myrie has raised $472,000 for his campaign, including $147,000 in the most recent fundraising period. His campaign filed nearly $200,000 in matching claims for a potential $1.6 million in public funds.

The Campaign Finance Board will announce its first round of public matching funds payments on Dec. 16, 2024. The deadline to submit comments on the proposed rule changes is Oct. 25, 2024. Comments may be submitted online or emailed to rules@nyccfb.info.