On September 26, 2024, New York City Mayor Eric Adams was indicted by federal prosecutors in Manhattan on five counts including soliciting illegal foreign campaign donations. The evidence presented in this indictment, if proven in court, demonstrates the clear threat to our democracy and to the promise of American self-government when foreign actors try to influence our elections. This threat does not stop with this particular case. Right now, there is a loophole in New York and across the country that allows for foreign influence in our elections through the political spending of foreign-influenced corporations. 

Under well-established federal law, it is illegal for a foreign government, business, or individual to spend any amount of money at all to influence federal, state, or local elections. Federal law, however, leaves a gap following the U.S. Supreme Court’s 2010 Citizens United decision which invalidated laws that banned corporate political spending. While the existing federal statute prohibits a foreign-registered corporation from spending money on federal, state, or local elections, federal law does not address the issue of political spending by U.S. corporations that foreign investors significantly own. These foreign investors can include incredibly wealthy individual foreign investors living abroad, a foreign corporation, and even a foreign government. For example, one of the top shareholders of Uber, a foreign-influenced corporation, includes the Saudi government. Uber has spent millions of dollars over recent years to influence elections across the country: including in New York.

However, legislation is currently pending in New York that would close this loophole and protect New York elections. Senator Michael Gianaris and Assemblywoman Latrice Walker have introduced the Democracy Preservation Act. This bill would prohibit the political spending of foreign-influenced corporations from spending in New York elections. In 2024, the New York Senate passed this bill (S371/A2633) with bipartisan support. In the coming 2025 legislative session, New York has the chance to address this timely issue of foreign influence in New York elections by passing The Democracy Preservation Act.

Learn more here.