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Candidates seeking office at Houston City Hall will now face no limits on using campaign funds to repay themselves for loans they make to their own campaign accounts.
The change was initiated by Council Member Edward Pollard, who has long been rumored to be running for mayor – and who has loaned more than $1 million to his campaign account. The mayor, controller and all 16 council seats will be on the ballot next year.
Previously, the mayor, controller and at-large council members could repay themselves no more than $75,000 and district council members no more than $50,000. The new policy, approved unanimously without discussion during Wednesday's council meeting, removes those caps.
Pollard would in theory be able to use campaign contributions to fully recoup the $1,040,000 he has loaned his campaign. Pollard said that having cash in politics was simply the way of the game.
"If someone has the thought to possibly run for office, they have to either raise a lot of money, or they have to loan themselves a lot of money," Pollard said. "There's only two things you can do."
POLLARD'S CAMPAIGN ACCOUNT: A Houston council member has almost as much campaign cash as Mayor John Whitmire. What does it mean?
The District J council member did not say which office he might seek when his term as a council member ends next year.
Pollard has noted the change aligns the city with a 2022 U.S. Supreme Court ruling on campaign loans.
U.S. Sen. Ted Cruz in 2019 sued the Federal Election Commission, claiming a law prohibiting candidates from repaying themselves more than $250,000 in campaign loans violated the First Amendment. The justices ultimately ruled repayment limits unconstitutional.
Pollard has a good legal argument for making the change, said Andrew Cates, a Texas attorney who specializes in ethics and campaign finance.
But Cates warned such changes on the federal and local level may make it so only those with money can run for office, and noted the deceptive appearance of making large donations to one's own campaign.
"It's a fake out of a groundswell of support from literally anybody else but yourself," Cates said.
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