Public Financing of Campaigns: An Overview
Updated February 5, 2008
Twenty-five states have programs that provide public funds for use in election campaigns. State public financing programs may be divided into three broad categories: those which provide funds directly to individual candidates, those that provide funds to political parties , and those which provide tax incentive to citizens who make political contributions. Many states operate programs which combine more than one of these categories. Each type is briefly summarized below, and the full array of public financing programs offered by states is detailed in Table 4.
States Offering Public Financing to Candidates
A total of 16 states offer public funds to political candidates (see Table 1). Candidate public financing programs are always voluntary, and public funds are provided to candidates on the condition that those who elect to receive public funds must limit their campaign spending. In a few states, the campaigns of candidates who choose to participate in public financing programs are financed solely with public funds; these candidates are prohibited from raising funds from private sources. This version of public financing is relatively new, and is commonly called "Clean Elections" public financing (a term coined by its proponents, but widely used in general to describe these programs). In most states, public funds make up just part of a participating candidate’s expenditures, and candidates continue to raise and spend funds from private sources within the limits stipulated by law.
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Table 1. Candidate Public Financing Programs
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State |
Candidates Eligible |
Type of Program |
Full/Partial Funding |
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Arizona |
All statewide offices
Legislature |
"Clean Elections" |
Full |
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Connecticuta |
All statewide offices
Legislature |
"Clean Elections" |
Full |
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Florida |
Governor
Cabinet members |
Matching grants |
Partial |
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Hawaii |
Governor
Lt. Governor
Off. Hawaiian Affairs |
Matching grants |
Partial |
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Maine |
Governor
Legislature |
"Clean Elections" |
Full |
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Maryland |
Governor
Lt. Governor |
Matching grants |
Partial |
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Massachusetts |
All statewide offices |
Matching grants |
Partial |
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Michigan |
Governor |
Matching grants & fixed subsidy |
Partial |
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Minnesota |
All statewide offices
Legislature |
Fixed subsidy |
Partial |
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Nebraskab |
All statewide offices
Legislature |
Matching grants |
Partial |
Source: National Conference of State Legislatures, 2007
(a)Connecticut's public financing program takes effect with the 2008 election for legislative candidates, and the 2010 election for gubernatorial candidates.
(b) Nebraska's public financing provides matching funds to a candidate who adheres to the voluntary spending limits only if that candidate's opponent does not.
For more detailed information on candidate-based public financing programs, view NCSL's summary charts on Partial Public Financing (link to new pdf referenced at right) and Full Public Financing (link to new pdf referenced at right).
States Offering Public Funds to Political Parties
Ten states provide grants to qualified political parties (see Table 2). These grants are generally not large, and are often used to help finance party conventions. The grants are funded by income tax check-offs (does not increase filer's tax liability) or add-ons (increases filer's tax liability), ranging in amounts from $1 to $25. In most states, the amount is between $1 and $5. In eight states, the full amount of the add-on or check-off goes to the political party designated by the taxpayer. In most states, if the taxpayer fails to designate a political party, the amount is divided among the qualified political parties in the state according to their registration or their share of the most recent gubernatorial vote.
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Table 2. Public Grants to Political Parties
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State |
Funding Source |
Grants to |
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Arizona |
$2, $5, or $10 add-on |
To political party specified by taxpayer |
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Idaho |
$1 check-off |
To political party specified by taxpayer |
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Iowa |
$1.50 check-offa |
To political party specified by taxpayer |
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Minnesota |
$5 check-offa |
To political party specified by taxpayer |
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New Mexico |
$2 add-ona |
To political party specified by taxpayer |
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North Carolina |
$1 check-offa |
To political party specified by taxpayer |
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Ohio |
$1 check-offa |
Divided equally among qualified parties |
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Rhode Island |
$5 check-off |
First $2 to political party specified by taxpayer; remaining $3 to candidate fund |
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Utah |
$2 check-off |
To political party specified by taxpayer |
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Virginia |
$25 add-ona |
To political party specified by taxpayer | (a) Amount may be doubled on joint returns.
States Offering Public Funds through Tax Incentives to Citizens
Ten states offer tax incentives to encourage citizens to make political contributions (see Table 3). In Arizona, an income tax credit of up to $610 or 20% of the tax amount (whichever is higher) may be claimed for contributions to the Clean Elections Fund. Minnesota will issue a refund of up to $50 for contributions to political parties and candidates who agree to abide by spending limits. In the other eight states, credits or deductions are available for contributions to candidates, and in some states, to political parties and/or PACs. In some cases, the contribution must be made to a candidate who has agreed to abide by spending limits in order for the taxpayer to receive the deduction or credit. The amount of the deduction or credit available ranges from $25 to $500; in most states, the limit is $50. This amount may be doubled for joint returns in most states.
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Table 3. Tax Refunds, Credits and Deductions for Political Contributions
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State |
Description |
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Arizona
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1. Income tax credit of up to $610 (adjusted 2007 amount) or 20% of tax amount, whichever is higher, for voluntary donations to the Clean Elections Fund
2. Taxpayers may mark a $5a check-off, which is transferred to the fund. |
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Arkansas
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$50a credit against state income taxes allowed for contributions to candidates, PACs and parties |
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Hawaii
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$500 income tax deduction for contributions of $100 or less to candidates who agree to adhere to spending limits or to a party central or county committee |
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Minnesota |
$50 per year refund for contributions to political parties and candidates who agree to spending limits |
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Montana |
$100a per year income tax deduction for political contributions |
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North Carolina |
$25 per year income tax deduction for contributions to candidates and newsletter funds |
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Ohio
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$50a credit against state income taxes owed for contributions to candidates |
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Oklahoma |
$100 per year income tax deduction for contributions to a candidate or political party |
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Oregon |
Income tax credit equal to the lesser of $50a or the tax liability of the taxpayer for contributions to major or minor parties, party committees, candidates who agree to spending limits, political committees organized and operated exclusively to support or oppose ballot measures or questions to be voted upon within the state |
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Virginia |
Income tax credit equal to 50% of the amount contributed to a local or state candidate. Maximum credit $25a | (a) amount may be doubled for joint returns
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