Local Campaign Contribution Limits

Local campaign donations correlate with electoral victory and policy outcomes.

Campaign donations are used to support candidates whose positions align with the donor or as an attempt to influence a candidate’s position on an issue (Gaudette & Benedicts-Kessner 2024). Most state and municipal campaign finance laws regulate contributions based on the type of donor: individuals, state parties, political action committees, corporations, and unions (National Conference of State Legislatures (NCSL) 2023).

In municipal elections, campaign donations correlate with electoral victory, but do not guarantee success (Adams 2018). In a study of 61 small- to mid-size cities, approximately 42% of candidates running at large and 30% running in an individual district won despite being outspent by other candidates.

In local government, campaign contributions are correlated with policy outcomes. For example, a study of 132 cities in five states showed that for every $500 donated by a real estate development interest group, cities permitted an extra 2.5 units of multi-family housing (Gaudette & Benedicts-Kessner 2024).

States and municipalities can limit campaign contributions and provide public financing.

Some states limit the amount that a type of donor can contribute to municipal campaigns (NCSL 2023). Fifteen states (AR, AZ, IN, KY, LA, MA, MS, NC, NH, OH, OK, RI, TN, WV, WY) have placed some form of campaign contribution limits on some donors, while seven states (CA, CT, IL, MD, NV, NJ, and NM) have limits on all contributions regardless of the donor type. NC and VT have dynamic campaign contribution limits, that adjust for inflation each cycle (17 V.S.A. §2905, N.C.G.S. § 163-278.13(b)).

Individual cities have passed ordinances limiting campaign contributions, and limits do not correlate with city characteristics, such as population size or city budget (Table 1).

Springfield, MO (population 170,000, budget $529 million) has also considered campaign contribution limits (City of Springfield 2025a, Springfield Regional Economic Partnership 2022, City of Springfield 2020). Most recently, a proposal would cap contributions to $2,600 per candidate for all donors (City of Springfield 2025b).

Cities and counties such as New York City (population 8.5 million, budget $114 billion) and Montgomery County, Mayryland (population 1 million) have instituted public financing for campaigns in addition to contribution limits (New York City Council 2025, New York City Department of City Planning 2025, Montgomery County Council 2024, Census Reporter 2023, New York City §3-705). In these cases, public money is available to match funds raised by the candidate. However, research suggests this has not reduced expenditures, increased competition, or resulted in higher voter turnout, although it has increased the number of “small dollar” donors (those who give less than $250) (Malbin et al. 2012, Kraus 2006).

Since 2015, Seattle has distributed four $25 vouchers to each registered voter, which can be donated to candidates (City of Seattle § 2.04.620). These result in more overall donations and more small dollar (less than $200) donations from a larger pool of donors (Griffith & Noonen 2022).

The effect of campaign contribution limits is unclear.

There is limited research focusing on the effects of municipal campaign contribution limits in the United States. Research in other countries is mixed. In Colombia, where mayors have significant control over municipal contracts, cities with higher campaign contribution limits saw more contracts awarded to donors (Gulzar et al. 2022). Additionally, those contracts were more likely to go over budget and be behind schedule. In Brazilian cities, municipal campaign contribution limits increased the number of candidates running against incumbents, but did not change policy outcomes in municipal education or health programs in the two years following the election (Avis et al. 2022, Avis et al. 2017).

Table 1. Comparison of cities with campaign contribution limits. Examples of cities with contribution limits and their population, median income, and annual budget data for fiscal year 2026. Campaign contribution limits are per single donor source. San Luis Obispo was selected as an example, but more Californian cities with contribution limits can be found at the California Fair Political Practices Commission. Population and median annual income data from U.S. Census Bureau Reporter, and annual budget data from City of San Antonio 2025, Kansas City Office of Management and Budget 2025, City of St. Louis 2025, City of Springfield 2025, Lakewood 2023, and San Luis Obispo 2025.

References

10 ILCS 5/9-8.5 Limitations on campaign contributions. Illinois. Link.

15 CSR 30-14.010 - Campaign Contribution Limits. https://www.sos.mo.gov/CMSImages/AdRules/csr/current/15csr/15c30-14.pdf

17 V.S.A. §2905 Campaign Finance, General Provisions, Adjustments for inflation. https://legislature.vermont.gov/statutes/section/17/061/02905

2.04.620 Democracy voucher issuance. Seattle, WA. Link

2.40.040 Contribution Limits. San Luis Obispo, CA. https://sanluisobispo.municipal.codes/Code/2.40.040

2.54.030 Candidates; Committees; Registration; Contribution Limits: Expenditures; Reporting. Lakewood, CO. Link

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