New Hampshire
A new campaign finance law is allowing record-breaking spending in NH governor’s race • New Hampshire Bulletin
In her quest for the New Hampshire governor’s office, Kelly Ayotte is breaking financial records. As of Oct. 30, the Republican nominee and former U.S. senator has raised $21 million since running for the office and spent nearly $19 million of it.
The amount far surpasses the funds raised by Ayotte’s Democratic opponent, former Manchester Mayor Joyce Craig, who brought in $7.3 million as of that same deadline. And it dwarfs the $1.7 million raised by Gov. Chris Sununu during his entire 2022 re-election effort.
But the money is unusual for other reasons: A majority of it – 70 percent – comes from a single political action committee. And none of those transactions can be traced to individual donors.
The strategy is the direct result of a 2023 campaign finance law that removes limits on donations to candidates from political action committees. And after recent validation from the Attorney General’s Office, the Ayotte campaign’s application of the law could become common practice in future elections.
In an Oct. 10 opinion, the office’s Election Law Unit wrote that Ayotte’s practice of accepting millions of dollars from a political action committee supplied by the Republican Governor’s Association is legal, rebuffing a complaint by Democrats.
Since then, Democrats have followed the RGA’s lead and embraced the technique on their own, pouring larger sums of money to Craig.
The little-noticed law – added to last year’s state budget – allows New Hampshire candidates to accept an unlimited number of contributions from “political advocacy organizations,” without those organizations needing to disclose their donors.
The maneuver has another benefit: Candidates can use that money to buy cheaper ads. Federal law requires that television stations give political candidates a cheaper rate to buy ads than political organizations in the 60 days ahead of an election. That incentivizes PACs to transfer funds directly to candidates in the final stretch.
Campaign finance reform advocates have objected to the state law, arguing the removal of the limits has diminished transparency and accountability for candidates. But the new tool has proven attractive for some campaigns this year.
The state’s online campaign finance system shows that the Republican Governors Association contributed a total of $21.3 million to a political action committee named the Live Free PAC this campaign cycle. That “political advocacy organization” has sent much of that money – $14.7 million – on to the Ayotte campaign, and $6 million to the New Hampshire Republican State Committee.
Democrats challenged that set-up, arguing the Live Free PAC had wrongfully registered as a “political advocacy organization,” which allows it to accept unlimited donations from the RGA. The New Hampshire Democratic Party said it should have registered as a “political committee,” which would cap the number of donations it could receive from the RGA to $30,000 for the entire election season.
But the Attorney General’s Office response this month asserts that the Live Free PAC is a validly registered political advocacy organization, and is thus able to raise unlimited amounts and transfer unlimited amounts to candidates.
‘Political committee’ vs. ‘political advocacy organization’
The 2023 law allows unlimited donations to candidates in many – but not all – cases.
Individual donors and corporations are still capped at donating $15,000 in total to a candidate, per the law, RSA 664:4. Wealthier individuals often skirt this cap by registering multiple limited liability corporations and donating the $15,000 maximum from each corporation.
And individuals and businesses are still prevented from donating more than $30,000 in one election cycle to a “political committee” or “political party.”
But individuals are not capped in how much they may donate to a “political advocacy organization.” And after the 2023 change, a political advocacy organization can now pass on an unlimited amount of funds directly to a candidate.
That change means individuals or large party organizations like the RGA and DGA can pass major donations on to candidates – as long as they send those donations through a political advocacy organization.
And it raises a legal question: What is the difference between a political committee, which is capped, and a political advocacy organization, which is not?
The statute is less than clear. A political committee is defined as any organization that “promotes the success or defeat of a candidate or candidates or measure or measures.” And a political advocacy organization is any organization that spends at least $2,500 for communication that is “functionally equivalent” to advocacy for a candidate or measure, even if that is not the organization’s primary role.
In Ayotte’s case, Live Free PAC has registered as a political advocacy organization in the 2018, 2020, 2022, and 2024 election cycles, campaign finance records show. And after the passage of the 2023 law, the PAC has taken advantage of the new unlimited powers, transferring large amounts to the Ayotte campaign, usually in tranches of $1.5 million at a time. All of Live Free PAC’s money comes from the RGA.
The fundraising strategies are a major difference between the two gubernatorial campaigns. Craig has raised $4.4 million from individual donors, or 65 percent of her funds overall. Ayotte has raised $3.7 million from individual donors, but that comprises just 18 percent of her total haul. The other $17 million comes from the $14.7 million in Live Free PAC transfers and money transfers from other organizations and PACs.
If you can’t beat ‘em …
In its Sept. 18 complaint to the Attorney General’s Office, the New Hampshire Democratic Party alleged that the Live Free PAC had wrongly registered as a political advocacy organization, when it really met the definition of a political committee.
But Richard Lehmann, an attorney representing the Live Free PAC, disputed that argument. In an Oct. 8 letter to the Attorney General’s Office, Lehmann wrote that Live Free PAC met the definitions of a political advocacy organization, or PAO, and argued that neither the Legislature nor the Attorney General’s Office had issued guidelines that would prevent that registration.
“If the Legislature intended to restrict the ability of organizations to register and conduct themselves as PAOs, it would have imposed additional conditions or restricted the ability of organizations to qualify,” Lehmann wrote. “It did not do that.”
Assistant Attorney General Brendan O’Donnell, chief of the Election Law Unit, sided with the PAC, writing in response to the NHDP that the PAC “registered as a PAO and met the statutory definition of a PAO.” O’Donnell added that just because Live Free PAC also met the statutory definitions of a political committee did not mean it needed to follow those contribution limits, since it didn’t register as one.
Following the advisory opinion, the Democrats changed tack. After months of running a political committee titled “Democratic Governors Association – New Hampshire” and adhering to the $30,000 limits on individual receipts, the Democratic Governors Association registered its own political advocacy organization on Oct. 11, a day after the Attorney General’s Office opinion, campaign records show.
That entity, named “DGA New Hampshire PAO,” has accepted a number of funds, including a $3.2 million transfer from the Democratic Governors Association, and has transferred $800,000 to the Craig campaign and $3.1 million to the New Hampshire Democratic Party, as of the latest filings.
Blessing or a curse?
When the 2023 law passed, some welcomed it, arguing that New Hampshire has always had loopholes allowing large transfers of wealth to candidates. The new law, they argued, simply eased the process for major campaigns.
“I believe that money is speech, and so I’m opposed to placing limits on that,” said Rep. Joe Sweeney, an original sponsor of the legislation, in an interview last year.
Others, like Olivia Zink, were appalled. Zink, executive director of Open Democracy, an advocacy group that pushes to reduce money in political campaigns, says she worried last year that the law would bring in vast and unaccountable sums of money to the state.
This year, Zink feels she was proven right. And she argues lawmakers should return donation limits to campaigns.
“I think candidates need to answer who they’re getting their campaign cash from,” she said. “Voters are being flooded with ads, and if they’re being paid for by nondisclosed, out-of-state donors, is that how they’re going to run our state?”
The federal government has activated the New Hampshire National Guard’s 157th Air Refueling Wing in connection with the war with Iran.
“I’ve had a briefing myself, a classified briefing, but it’s really important on the messaging on this that we really coordinate with the Pentagon,” Gov. Kelly Ayotte told reporters during a press briefing following Wednesday’s Executive Council meeting.
Ayotte said she was unable to share additional details about the nature of the New Hampshire National Guard’s activity related to the conflict, including how many guard members have been activated or what role they are playing.
“We’re going to respect what messaging comes out of the Pentagon just to make sure that our men and women in uniform are fully protected and that we aren’t providing any information that could be used in a way that would be harmful to them,” Ayotte said.
In a statement Thursday, Ayotte said the unit had been deployed in late February to the U.S. Central Command area of responsibility in support of the operation.
Earlier this week, Pentagon officials confirmed that members of the Vermont National Guard were involved in attacks against Iran over the weekend, though our news partners at Vermont Public were not able to confirm additional details on the nature of the operation.
During the briefing with local reporters, Ayotte also stressed her support for servicemembers and those close to them.
“I have such respect for our men and women in uniform,” Ayotte said. “As you know, I come from a military family, and they have our full support, and we appreciate them and their families, and obviously anyone who is serving right now, and my thoughts and prayers go out to those who have lost someone that they love.”
By PAULA TRACY, InDepthNH.org
CONCORD – While Republican Gov. Kelly Ayotte has said she opposes increasing highway toll rates across the state, the Senate voted Thursday to increase rates for out-of-state license plate holders.
It now goes to the House for consideration.
This would be a $1 increase for those who have out of state plates going through the tolls at Hooksett, Hampton and Bedford for out-of-state plates, a 75 cent hike for those taking Hampton’s Exit 2 and on the Spaulding turnpike at Rochester, and a 50 cent hike for those taking the exit off I-93 to Hooksett.
An analysis in the bill shows that this would increase toll revenue by $53.3 million in fiscal year 2027 and go up each year to generate $81.4 million a year in 2036.
Senate Bill 627 passed on a voice vote with two Republicans, Senators Regina Birdsell of Hampstead and William Gannon of Sandown opposing.
Senator Mark E. McConkey, R-Freedom, moved to take the bill off the table and offered an amendment.
He said the last time there was a systemwide increase to the turnpike toll was 19 years ago.
“I am sure we could all agree the cost of operations…has continued to escalate when revenue is not rising with it,” and he noted that with an enterprise fund, the state can only spend what it takes in.
The state has just completed a 10-year highway plan and there was a $400 million shortfall in projects that could not be paid for under the current income.
McConkey said the measure would not increase tolls for New Hampshire drivers with a state license plate.
“Why don’t we ask our neighbors,” to pay a toll increase. “We are getting the best of all worlds,” by passing the bill, he said, including “protecting our residents” and having resources for improvements to the turnpike system.
Sen. Gannon, R-Sandown, asked McConkey if there are any studies on impacts near the border on businesses.
If implemented, McConkey said the state will be the 27th lowest in per mile cost still. McConkey said the bill would also increase from seven to 14 days the amount of time for those with NH license plates to pay for a toll adding there are other states that also have different rates for out-of-state users.
The Hampton toll cost would go from $2 to $3, while Hooksett and Bedford would rise from $1 to $2 for out-of-state plates.
New Hampshire currently has the lowest rate per mile among states with tolls roads.
The governor said she does not support a toll increase.
“We are not going to put a burden on drivers for a toll increase,” Ayotte said. “Families are struggling.”
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