Bill to Ban Political Spending by Corporations Introduced in the New York State Legislature
By: Joseph T. Burns
Ahead of the start of the 2026 session of the New York State Legislature, a proposal has been introduced by two Democratic state legislators to prohibit political spending by corporate entities. The bill, which is sponsored by State Assemblyman Micah Lasher and State Senator Kristen Gonzalez, seeks to prohibit political spending by corporations and other business entities by redefining the business organizations’ powers under the Business Corporation Law.
Currently, the New York State Election Law permits, within certain limits, political contributions by corporations and other business entities. Corporations are permitted to contribute up to an aggregate of $5,000 annually to most political committees. This includes contributions to candidates, PACs, constituted committees and party committees. Corporations are also permitted to contribute an unlimited amount to party housekeeping accounts, ballot proposition committees, and independent expenditure committees.
Limited liability companies (LLCs), under current law, are subject to similar contribution limits. Like corporations, LLCs are currently permitted to contribute up to $5,000 in the aggregate annually to most political committees. LLCs are also permitted to contribute an unlimited amount to party housekeeping accounts, ballot proposition committees, and independent expenditure committees. The law, however, requires that contributions by LLCs be attributed to each member of the LLC in proportion to the member’s ownership interest. This attribution counts against the individual’s individual contribution limit.
The Lasher-Gonzalez bill aims to completely ban contributions from corporations, LLCs, and all other business entities. Their proposal relies on an untested theory that entities such as corporations and LLCs are creations of state law, and state law can, therefore, define their powers. The legislation redefines the terms under which these entities exist and ends their ability to act as political committees or make contributions to political committees.
Should it become law, the Lasher-Gonzalez proposal will very likely see its constitutionality challenged.
The 2026 state legislative session begins in January. One or both houses of the state legislature could take up this bill at that time. We will continue to monitor this proposal as the 2026 session progresses and provide updates when appropriate.
