Joe Lhota got some of the best news of his mayoral campaign Thursday when a federal appeals court lifted New York’s $150,000 annual limit on individual contributions to political action committees.
The ruling by the US Second Circuit Court of Appeals means that a pro-Lhota group’s PAC can raise and spend millions on behalf of the Republican mayoral candidate.
He could use the help. Polls show him trailing Democrat Bill de Blasio by more than 40 points.
The New York Progress and Protection PAC filed suit in September to overturn the state contribution limit based on the US Supreme Court’s ruling in the “Citizens United” case, which lifted restrictions on political spending by corporations, unions and special-interest groups.
Manhattan federal Judge Paul Crotty had earlier refused to grant a preliminary injunction blocking enforcement of New York’s law.
But he was unanimously overruled by the three-judge appeals panel.
Second Circuit Chief Judge Dennis Jacobs said the PAC “has a substantial likelihood of success on the merits,” noting that every federal appeals court has ruled against contribution limits since the Citizens United case.
“The hardship faced by NYPPP and its donors from the denial of relief is significant,” Jacobs wrote.
“Every sum that a donor is forbidden to contribute to NYPPP because of this statute reduces constitutionally protected political speech.”
PAC lawyer Mike Carvin said the group was “very pleased” and “grateful [the court] did it in sufficient time that we can still participate in the New York City mayoral election” on Nov. 5.
He also said that while “time is very short,” the group will make a “vigorous effort” to raise additional funds to boost Lhota.
Terry Pell of the Center for Individual Rights, who worked on the PAC’s case, added: “With this decision, New York City voters will now get a more democratic mayoral race, one with an even financial playing field.”
According to its latest filing with the Campaign Finance Board, Lhota’s campaign has about $985,000 on hand, compared to $1.8 million for de Blasio.
De Blasio spokeswoman Lis Smith blasted the appeals court ruling, saying it “will empower the right-wing billionaires, like the Koch Brothers, and Tea Party groups who support Joe Lhota to drown out the voices of New Yorkers.”
“The stakes are too high to let the same Republican extremists who shut down the government hijack the mayoral election,” Smith added.
In response, Lhota’s campaign accused de Blasio of “hypocrisy,” noting he did nothing when labor unions raised more than $1 million for TV ads to attack Lhota.
Additional reporting by Beth DeFalco