Following the money

Politico

3 days ago

Presented by New Yorkers for Local Businesses
With help from Cris Seda Chabrier
The city's Campaign Finance Board has emerged as a major influence on this year's mayoral race — just ask Eric Adams.
The board's decision to deny the troubled incumbent millions of dollars in matching funds over straw donor concerns led him to drop out of the Democratic primary, his legal team suggested in a lawsuit filed this week.
And the seven-figure hole the CFB's decision blew in Adams' campaign coffers has also sapped his ability to run a serious, citywide operation as an independent in the general election.
An attorney for the CFB even filed a brief seeking the release of search warrant information in Adams' five-count bribery case, which President Donald Trump's Justice Department successfully pushed to dismiss.
Today, the CFB is poised to alter the course of the race yet again when it decides whether Adrienne Adams has met the threshold to qualify for millions of dollars in matching funds of her own.
The Council speaker was a late entry into the race and is not polling at the front of the pack. But she has the backing of a powerful union and Attorney General Letitia James and a natural appeal to Black voters that could make things complicated for Democratic primary frontrunner Andrew Cuomo.
But money is essential. The Council speaker's campaign has expressed confidence it has enough eligible donations to qualify her for around $2 million. If she fails to get it — and paperwork snafus have tripped up several other candidates already — she will lack the fuel necessary to mount a meaningful run.
The CFB, which runs the city's public matching program, has a history of upending the dynamics of races and clashing with sitting mayors.
David Dinkins sought to oust the board's chair in retaliation for a fine. When facing penalties of his own, Rudy Giuliani attempted to thwart a vote by installing a loyalist in the middle of a televised meeting (he wasn't successful). His administration refused to honor checks the board sent out to campaigns. And he threatened to move CFB's office to what a Daily News columnist described as 'the worst shithole' — at one point dispatching staffers to the board with tape measures.
Those antics underscore the CFB's sometimes precarious role: Funded through the city budget but tasked with policing the mayor in charge of that spending plan.
'It's always a risk,' said Nicole Gordon, the board's executive director during the Giuliani era and now a distinguished lecturer at Baruch College. 'But the good news is the members of the board throughout its history have been fair dealers: Not political. Not going after anybody. And not being fearful of what the consequences could be.'
In 2013, the board denied millions of dollars in matching funds to John Liu's mayoral campaign after his treasurer was convicted of participating in a straw donor scheme, obliterating the landscape of the race and prompting an unsuccessful lawsuit from the then-city comptroller.
But its actions in this year's contest are without precedent.
In addition to hitting Adams — the mayor has blasted the board's decision and is asking a judge to overturn it — the CFB temporarily denied Cuomo matching funds, warned campaigns against improperly working with Super PACs and then fined Cuomo's campaign for doing just that.
'New York City has the largest public financing system and the strongest campaign finance laws in the country, and with that comes a responsibility to enforce the rules equally and with discernment,' board spokesperson Amy Lebowitz said in a statement. — Joe Anuta
HAPPY FRIDAY: Got news? Send it our way: Jeff Coltin, Emily Ngo and Nick Reisman.
WHERE'S KATHY? In New York City, Westchester County and Albany, making an economic development announcement.
WHERE'S ERIC? Public schedule unavailable as of 10 p.m. Thursday.
QUOTE OF THE DAY: 'This is a matter of life or death, and you can pump the next song.' — Ballroom star and activist Gia Love at a 'ranked-choice voting ball' via Hellgate.
ABOVE THE FOLD
HOT COMPETITION: Private sector boosters are coming out swinging against a bill that would ban non-compete clauses.
New York Jobs Now, a group allied with The Business Council, will launch a six-figure digital ad campaign today against the measure as the legislative session enters its final two-week stretch in Albany.
The ad warns that a ban on the clauses — provisions that block workers from starting a competing business or working for a direct competitor — 'could shatter our economy, crippling businesses' ability to innovate and retain talent, and sending our jobs fleeing to other states.'
The ad campaign is a major push for the business community, which scored a victory when Hochul vetoed a prior version of it based on concerns raised by the private sector.
'Job creators — from small businesses to multinational employers — are sounding the alarm about this misguided policy,' Business Council President Heather Mulligan said. 'These ads are a wake-up call: this bill would devastate our state's already fragile jobs recovery and do lasting harm to our economy.'
Business leaders have long complained about the state's regulatory climate and high taxes.
But they've scored victories this legislative session, including a budget provision that eliminated the $7 billion in remaining Covid-era unemployment insurance debt — ending a surcharge on employers in the process.
Democratic lawmakers have approved a prior version of the non-compete bill and aren't likely to distance themselves from it based on opposition from employers.
'When this bill passed in 2023, it was met with a dark money fear-mongering campaign and significant lobbying efforts from the large corporations that stood to lose a competitive advantage they had long enjoyed over small businesses in New York,' said Democratic state Sen. Sean Ryan, the bill's sponsor. 'The version of the bill that I introduced this year addresses the concerns employers raised back in 2023, and yet this new attack ad features the same fear-mongering tactics as if it's the same bill.'
Ryan, a Buffalo mayoral candidate, has argued the bill's merits will address problems created by non-compete clauses, which he said include depressed wages, a weaker labor market and a stifled economy.
'Passing a ban on non-competes remains a priority for me this legislative session,' he said. 'I have listened to the concerns of employees and employers alike, and I look forward to continuing conversations with stakeholders around this important issue and getting this bill over the finish line.' — Nick Reisman
CITY HALL: THE LATEST
COMPTROLLED ENVIRONMENT: The two top candidates for New York City Comptroller faced off Thursday evening for a relatively tame debate laden with questions about the fiscal threat posed by President Donald Trump.
The dueling Democratic officials — City Council Member Justin Brannan and Manhattan Borough President Mark Levine — showed little daylight between their positions aside from delivery style.
They vowed to stand up to attempts by the president to curtail New York City's federal funding stream. They want to divest city pension funds from Tesla. They want to audit NYPD overtime. They shot down Mayor Eric Adams' recent 'Bit bond' proposal. They are proposing to invest pension funds into affordable housing and universal childcare.
And they really don't want to talk about Andrew Cuomo, who is leading the Democratic primary for mayor — the very position they would be charged with keeping in check if elected. Neither side could come up with a single specific concern about the frontrunner's record. — Joe Anuta
DEMS BACK DETAINED STUDENT: New York City Democrats are calling on Eric Adams to fight for the release of a Bronx high schooler recently detained by immigration authorities after a routine court appearance.
Lawmakers assailed the mayor yesterday at a Lower Manhattan rally calling for the release of the 20-year-old Venezuelan asylum seeker.
Dylan, whose last name is being withheld at the request of his family, entered the U.S. legally through a program in place under President Biden. Advocates claim he was tricked into giving up his asylum status.
'One person who's missing is Eric Adams,' Public Advocate Jumaane Williams said at the rally. 'I understand the limited role we have locally on immigration, but mayor — deputy president Eric Adams — all I want you to do, all I want you to do is be as vocal about immigration issues as you were under Biden.'
The mayor has weathered criticism for cozying up to Trump, whose administration successfully pushed to have federal corruption charges against him dropped.
Schools Chancellor Melissa Aviles-Ramos, who was appointed by the mayor, delivered brief remarks during the demonstration. She encouraged families to continue sending their kids to schools.
'Our hearts go out to the student Dylan, who was detained by ICE, and we are deeply saddened for his family,' Aviles-Ramos said. 'We also want to be clear: this incident did not occur on school grounds.'
City Hall spokesperson Zachary Nosanchuk told Playbook the chancellor's comments 'speak for our full admin.' — Madina Touré
More from the city:
— NYPD Commissioner Jessica Tisch stands by the department's work with the feds amid the Trump immigration crackdown. (THE CITY)
— An NYPD detective on Eric Adams' security detail may be tied to the crypto millionaire torture case. (NBC 4 New York)
— In a sign of a thinning field, Jessica Ramos and Michael Blake didn't make the cut for the second mayoral debate. (Daily News)
NEW FROM PLANET ALBANY
WINE AMENDMENTS: State lawmakers backing a measure to sell wine in grocery stores amended the legislation to include more mom-and-pop operations.
The change comes as supermarkets are making an end-of-session push for the long-stalled bill that liquor store owners have staunchly opposed.
The amendments would lower the minimum square footage required for a grocery store to have a wine license from 5,000 to 4,000. A new provision would provide incentives to sell New York-produced wines and block the sale of store-branded wines.
There would also be a buffer zone for existing liquor stores by placing restrictions on new wine licenses within 500 feet of their businesses. Liquor stores would also be allowed to sell a wider variety of products.
'Allowing grocery stores to sell wine is a common-sense reform of our state's outdated liquor laws that will make life more convenient for consumers while supporting New York's wine industry and businesses of all sizes,' said state Sen. Liz Krueger and Assemblymember Pamela Hunter in a joint statement. — Nick Reisman
More from Albany:
— State lawmakers want a Holocaust memorial near the Capitol. (Spectrum News)
— Faith leaders are trying to encourage the Assembly to approve a packaging reduction bill. (City & State)
— Advocates are pushing a bill that would bring wolves back to New York. (Times Union)
KEEPING UP WITH THE DELEGATION
COURTHOUSE DETENTIONS: Rep. Dan Goldman confronted plainclothes federal immigration agents who've been detaining migrants outside a lower Manhattan court Thursday. He said the officers, who appeared to hold lists with migrants' names and photos, avoided answering questions he posed as a member of Congress carrying out his oversight duties.
Nationwide, Department of Homeland Security attorneys have been asking judges to dismiss cases against migrants and open 'expedited' deportation proceedings instead. Immigration and Customs Enforcement officers then stop the migrants as they leave court.
'This is Gestapo-like behavior where plain-clothed officers, wearing masks, are terrorizing immigrants who are doing the right thing by going to court,' Goldman told reporters.
The court building houses one of the House member's district offices. Several migrants and protesters have been arrested there so far this week.
The incidents come as Rep. Ritchie Torres wrote a letter to Homeland Security Secretary Kristi Noem this week demanding answers about the Bronx high school student detained by ICE agents after a court appearance.
'He has no criminal record. He is, by every standard, contributing to his community and making good on the promise of the American dream,' Torres wrote. 'The basis for his detention hinges on a disturbing trend of deporting those without criminal records and without any evidence of criminal conduct.'
An ICE spokesperson did not immediately respond to a request for comment. The DHS has expanded its use of 'expedited removal' as part of Trump's deportation agenda. — Emily Ngo
More from Congress:
— House Minority Leader Hakeem Jeffries visits Puerto Rico to discuss SNAP and food insecurity. (El Nuevo Día)
— House Republicans' tax package is now expected to cost nearly $4 trillion, government forecasters say. (POLITICO)
— Democratic candidates line up to try to take on Hudson Valley Rep. Mike Lawler in 2026. (NY1)
NEW YORK STATE OF MIND
— Community and charity organizations in New York are gearing up to shoulder the fallout from potential cuts to Medicaid and SNAP. (THE CITY and NOTUS)
— DraftKings won't be taking over a proposed Nassau County casino site. (Newsday)
— Cable subscribers are losing access to NY1 and News 12 amid a dispute. (Gothamist)
SOCIAL DATA
OUT AND ABOUT: Spotted at the FGS Global NYC spring media party at the Lobster Club in midtown Wednesday night: Andrew Ross Sorkin, Jacqueline Corba, Martin Arnold, David Benoit, Dade Hayes, Micah Maidenberg, Lachlan Cartwright, Max Tani, Michael Grynbaum, Jocelyn Noveck, Romaine Bostick, Pippa Stevens, Brooke Masters, Mike Feldman, Winnie Lerner, Paul Holmes, Cat Rakowski, Adam Blickstein and Elan Bird.
… Spotted at the New Jewish Home's 10th Annual 'Eight Over Eighty Gala' on Wednesday night honoring former New York Attorney General and Bronx Borough President Bob Abrams alongside his wife Diane Abrams: Judy Collins, Judith Viorst, Carol Jenkins, Ruth Messinger and Letty Cottin Pogrebin.
WEDDING BELLS: Hazel Crampton-Hays, senior vice president at HELLER and former press secretary to Gov. Hochul, and Noah Rayman, chief of staff at Empire State Development, tied the knot over Memorial Day weekend in Cleveland. Spotted were ESD president Hope Knight; HELLER CEO Risa Heller; Hochul administration members Avi Small, Melissa Bochenski, Molly Streb and Colin Brennan; Port Authority of New York and New Jersey's James Allen; Kathy Hochul alums Julie Wood and Jeff Lewis; Andrew Cuomo alums Abbey Collins, Matt Rubin, Tom Feeney, Will Burns, Kate Dineen and Jack Davies; and Scott Stringer alums Robbie Young, Amy Varghese, Cameron Hellerman and Emily Bernstein.
HAPPY BIRTHDAY: Former Rep. Steve Israel … Tim Williams of Spectrum News … Matt Coleman of the Small Business Administration … Lauren Corcoran-Doolin … Jeffrey Laufer of ConEd … Samantha Diliberti of JPMorgan Chase's government relations … Nashanta Lamont
(IS SATURDAY): State Sen. Thomas O'Mara … Adrien Lesser of Sen. Kirsten Gillibrand's office
(IS SUNDAY): former Rep. Tim Bishop … former Assemblymember Kenny Burgos … Joe Taranto … Halimah Elmariah of state Attorney General Letitia James's office … Phyllis Shafran
Missed Thursday's New York Playbook PM? We forgive you. Read it here.