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

Senators Umberg, Allen, and Cervantes advance a framework for citizen-funded elections that would, under clearly defined safeguards, permit candidates to expend and accept public funds for campaigns while anchoring implementation to voter approval in the 2026 statewide election. The measure treats public funding as an available option once strict eligibility criteria are met and, in a notable departure from current practice, would allow local standards to adjust expenditure limits within specified bounds rather than maintaining a blanket prohibition.

At the core, the bill defines what counts as “public funds” and sets out a structured path for qualification, expenditure, and oversight. Candidates who receive public funds would be required to adhere to statute-, ordinance-, or charter-based “expenditure limits” and meet “strict criteria” that reflect broad-based support, including small-dollar contributions. A key mechanism requires candidates to demonstrate support through qualifying contributions, with a ceiling on counting the largest individual contribution at ten dollars. The framework also limits how public funds may be used, prohibiting payment of legal defense fees or fines and preventing repayment of personal loans with public money during or after a campaign. Increases to expenditure limits would be allowed only if they do not exceed the highest level of net supportive funds available to other candidates for the same office, adjusted for independent expenditures in support or against the candidate. Public funding programs must be open to both challengers and incumbents without discrimination, and the state commission would not administer a local public funding system.

The bill also tightens safeguards against improper influence by foreign actors. It would prohibit foreign governments, foreign principals, and related entities from making or soliciting contributions or expenditures in connection with elections or ballot measures, with penalties including a required minimum equal to the contributed amount and up to triple that amount. The definitions of “foreign principal” and “foreign national” would be clarified and expanded, including a carve-out for certain individuals covered by the Deferred Action for Childhood Arrivals program. The text contemplates severable provisions and outlines how the foreign-funding provisions interact with existing laws, while maintaining that lawful permanent residents are not encompassed by the same restrictions.

Implementation hinges on voter approval. The act contemplates submission of its provisions to voters in a statewide general election and outlines conditional operative paths tied to the passage of a companion measure. If the companion change is not enacted or takes effect differently, certain sections would not become operative. The bill preserves a severability clause, ensuring that invalidity in one provision would not automatically invalidate the rest. In the broader policy context, the findings accompanying the measure describe the rationale for public funding as a means to diversify participation, reduce the influence of wealthy donors, and preserve the integrity of elective office, drawing on academic and policy research cited in the bill’s findings. The authors also note existing local and charter-city experiences with citizen-funded programs to illustrate the potential scope of implementation.