Political Reform Act of 1974: public campaign financing: California Fair Elections Act of 2026.

Senators Umberg, Allen, and Cervantes propose sweeping changes to California's campaign finance system through legislation that would permit public funding of election campaigns while strengthening restrictions on foreign political contributions. The bill removes the current blanket prohibition on using public funds for campaigns, allowing candidates who meet strict eligibility criteria and spending limits to receive public financing, though such funds cannot be used for legal fees, fines, or repaying campaign loans.

The legislation establishes detailed requirements for public campaign funding programs, including provisions that candidates must demonstrate broad grassroots support through small-dollar contributions not exceeding $10 per donor. Local jurisdictions would gain authority to adjust spending limits based on a formula comparing candidates' available funds and independent expenditure activity. The bill explicitly prohibits discrimination based on party affiliation or incumbent status in the distribution of public funds.

The measure also modifies penalties for foreign political contributions, requiring violators to pay fines ranging from the full amount of the illegal contribution up to triple that sum. It expands restrictions on foreign influence by prohibiting contributions from foreign nationals while creating an exception for DACA recipients with current status. If approved by voters in November 2026, these changes would fundamentally alter how California candidates can finance their campaigns while establishing new guardrails around foreign political spending.