Enacts the democracy preservation act; prohibits contributions by foreign-influenced business entities; requires certification.
S00324, titled the “Democracy Preservation Act,” would prohibit certain business entities that are deemed “foreign-influenced” from making contributions, donations, expenditures, independent expenditures, or other political disbursements in connection with New York state or local elections. The bill also bars others from knowingly soliciting or accepting prohibited funds from such entities, and it restricts the downstream use of business-entity funds for political purposes unless the recipient segregates and accounts for certified compliant funds.
The bill defines “foreign-influenced” broadly, including business entities with at least one foreign owner holding 1% or more of equity or voting interests, multiple foreign owners holding 5% or more in aggregate, or foreign-owner participation in decision-making about U.S. political activities. It also requires any business entity making political expenditures or contributions to file a certification with the State Board of Elections within seven business days, signed under penalty of perjury, stating that it is not foreign-influenced. Violations would be treated as a class E felony and could also trigger civil penalties equal to the contribution amount plus up to $10,000, enforced by the state board’s chief enforcement counsel.
The bill would amend the Election Law by adding new definitions for “foreign-influenced,” “business entity,” and “foreign owner,” and by creating a new section prohibiting political spending by covered entities. It would also add a certification requirement for business entities engaged in political giving or spending, creating new compliance obligations for corporations, LLCs, partnerships, and similar for-profit entities, as well as for campaigns, committees, and political organizations that receive their funds. In practical terms, the measure would expand state election-law enforcement over corporate political spending and create new criminal and civil exposure for violations.
The available voting history suggests the bill has meaningful support but also notable opposition. It passed the Senate floor by 45-16 in 2025 and 45-13 in 2026, with Rules Committee votes of 16-5 and 16-4, indicating a consistent majority in favor but not unanimity. The bill’s findings frame it as a democracy-protection measure aimed at preventing foreign influence in New York elections, which likely resonates with supporters concerned about election integrity and campaign finance transparency.
The main point of contention is the breadth of the definition of “foreign-influenced” business entity, especially the 1% ownership threshold for a single foreign owner and the 5% aggregate threshold for multiple foreign owners. Critics may view those thresholds as sweeping enough to capture many ordinary businesses with incidental foreign investment, while supporters likely see them as necessary to prevent indirect foreign influence over political spending. Another likely dispute is the severity of the penalties, including class E felony treatment and civil fines, and the administrative burden of certification and fund-segregation requirements for businesses and recipients of political contributions.