A proposed change to New York State election law would place explicit limits on loans to candidates and political committees, seeking to close a gap that allows campaigns to receive loans without the same clear caps applied to contributions.
Assemblyman Jeffrey Dinowitz introduced the legislation Friday. A bill number had not yet been assigned, according to a release from his office.
The measure would establish aggregate limits on loans made by individuals and entities. It would also set specific limits for loans that candidates accept from family members, including spouses, children, parents, grandparents and siblings.
The proposal would limit campaign borrowing rather than prohibit it, applying defined caps to who may lend and how much campaigns may accept.
Under current election law, Dinowitz's office said, campaign contributions are subject to defined limits but loans do not have comparable restrictions when they are received. The proposal is intended to prevent candidates and political committees from using large loans to bring in money beyond contribution limits.
Loans that are not repaid by the applicable primary, special or general election are already treated as contributions, according to the release. Dinowitz's proposal would add limits at the point campaigns accept the loans, rather than relying only on whether they remain unpaid by Election Day.
The legislation would align the treatment of political loans more closely with the limits that govern contributions. Dinowitz said the change would create more consistent rules for campaigns and reduce the potential for loans to serve as a workaround.
“New York Election Law must keep pace with how candidates raise and spend money,” Dinowitz said. “This legislation pushes transparency and ensures that future campaigns operate under consistent rules.”
The proposal is at the introduction stage and has not yet received a bill number. The release did not provide a committee assignment, hearing schedule or timetable for legislative action.
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