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

Senators Umberg, Allen, and Cervantes propose allowing public campaign financing in California while strengthening restrictions on foreign political contributions through amendments to the Political Reform Act of 1974. The legislation permits candidates to receive public funds for campaigns, except those earmarked for education, transportation, or public safety, provided they meet qualification criteria and adhere to spending limits.

The bill establishes requirements for public funding eligibility, including demonstration of broad-based support through small-dollar contributions from district residents. Candidates receiving public funds face prohibitions on using these resources for legal defense fees, fines, or repaying personal campaign loans. Local jurisdictions maintain authority to set expenditure caps and administer their public financing systems, with the Fair Political Practices Commission explicitly removed from oversight responsibilities.

The measure also modifies penalties for foreign political contributions, requiring fines between 100% and 300% of the amount contributed or expended. It expands the definition of foreign principals to encompass political parties, persons outside the United States, foreign-organized entities, and domestic subsidiaries of foreign corporations controlled by non-U.S. persons. These provisions require voter approval at the November 2026 general election before taking effect.