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

Senators Umberg, Allen, and Cervantes propose fundamental changes to California's campaign finance system through legislation permitting public funding of elections while strengthening protections against foreign influence. The bill creates a framework for candidates to receive public campaign funds if they meet strict qualifying criteria and adhere to spending limits, though funds designated for education, transportation, or public safety remain off-limits.

The legislation establishes specific parameters around public funding use, prohibiting payments for legal defense fees, fines, or personal loan repayments. Candidates must demonstrate broad community support through small-dollar contributions, with a maximum qualifying donation of $10 per contributor. Local jurisdictions retain authority to adjust expenditure caps based on competing candidates' financial resources, though administration of public funding programs falls to local agencies unless they contract with the Fair Political Practices Commission.

The bill also expands restrictions on foreign involvement in state and local elections by broadening the definition of foreign principals and increasing penalties. Violations constitute misdemeanors with fines ranging from the contributed amount up to triple that sum. These provisions require voter approval at the November 2026 general election before taking effect.