Eric Adams has nearly $4 million in his campaign account. What happens to it now?

In announcing his decision to drop out of the New York City mayoral race – officially giving up his chance at a second term – Mayor Eric Adams blamed a local board’s decision to deny him millions in public matching funds. 

It’s true that Adams’ competitors all benefited from millions of public dollars through the city’s public campaign finance program. But the mayor’s campaign account is far from empty: more than $3.8 million in private donations were untouched as of the latest filing in mid-August. (And a not insignificant chunk of that haul came since June’s Democratic primary.) 

What happens to that $3.8 million now? The mayor has limited options. He will likely use some of the funds to wind down his campaign, paying outstanding bills and closing his offices. After that, he may keep the funds for a future city campaign, or he could try to transfer the funds to a state campaign account to help pay for his legal expenses, experts told City & State. One unknown is how much of the money the Campaign Finance Board might try to claw back in penalties for his 2021 campaign finance irregularities.

Because he has already secured a spot on the ballot – and missed the deadline to remove his name – Adams’ announcement that he’s ending his campaign doesn’t actually make a huge difference in his status as a candidate for the sake of the city’s campaign finance system. That means that he can spend his campaign funds on the same allowable expenses that he would even if he hadn’t announced his campaign is ending. It also means he has to continue filing campaign finance disclosures.

After the election, he’ll be restricted to the same limits as other candidates who didn’t drop out for how they can spend any leftover money. Rent and moving expenses for closing a campaign office are allowed, as are outstanding utility bills, and even holiday cards for supporters. Contribution to other campaigns, organizations or clubs, on the other hand, are explicitly prohibited. As are bonuses or gifts to staff and volunteers, unless previously agreed upon in a contract.

This is all standard practice – win or loss it’s a process all of the candidates will go through. But there are also aspects unique to Adams that make it challenging to predict exactly what will happen. 

The New York City Campaign finance board has repeatedly denied Adams’ campaign matching funds since December 2024, citing the fact that there was reason to believe his campaign violated the law. While President Donald Trump’s Justice Department dismissed the mayor’s federal corruption case in April, the campaign finance board has argued that its decision to continue withholding funds is based in part on its own independent investigation. Adams sued the board in May and then again in August, hoping to force the release of the funds. Neither attempt succeeded. The Daily News reported Monday that the mayor plans to continue his legal battle with the Campaign Finance Board in an attempt to unlock over $4 million in public matching funds that had been withheld from him. 

On one hand, the fact that Adams’ 2025 campaign didn’t receive matching funds could end up being an unexpected blessing for him. Candidates are required to return all unused public funds after the election – something Adams won’t be on the hook for.  Given all of his donations are private, Adams theoretically could transfer any remaining funds to a state account or keep it in a city account to be put toward a future political campaign. Making a transfer to a state account could be particularly beneficial for him as he could then use the funds to pay certain legal bills – but only for governmental or campaign-related charges, which in the case of Adams, would likely apply to the debt he incurred fighting a federal indictment earlier this year.

Adams set up a legal defense trust in 2023 to help cover his legal bills after the former U.S. attorney for the Southern District of New York started investigating his 2021 campaign for mayor. (He was later indicted on federal corruption charges, which were dropped earlier this year by the Trump Department of Justice.) Adams’ legal defense trust has not taken in donations since late last year, and leaves him with roughly $3 million in legal debt. 

 One of the biggest lingering questions now is what penalties Adams will be on the hook for. Early this year, the Campaign Finance Board told the mayor that it would be taking more time to complete an audit of his 2021 campaign – a process that usually takes years – after finding bookkeeping irregularities and learning of the alleged straw donor scheme. Back in December, when the board first denied Adams matching funds, he’d been informed that he could be found “in breach of certification,” meaning he’d be required to return the $10 million in taxpayer funds he received during his 2021 campaign. Adams could put the money from his 2025 campaign toward any penalties. 

In addition to his own campaign account, several independent expenditure committees have been set up to boost Adams’ candidacy. Those independent committees are not allowed to coordinate with the campaign, but can raise money on their own to promote the candidate (or campaign against a candidate). 

One of those committees, Empower NYC, has reported nearly $1.5 million in donations, and spent $300,000 of that on texts, T-shirts, and even an LED truck boosting Adams. The PAC’s founder, Abe George, did not respond to outreach about his plans for the committee after Adams dropped out.

Another independent expenditure committee created to boost Adams, Save the City PAC, was founded by real estate and reality television star Eleonora Srugo, but it has yet to report any donations.

Other candidates in the race – Democratic nominee Zohran Mamdani, Republican nominee Curtis Sliwa and independent candidate Andrew Cuomo – have PACs working on their behalf (and against them) too. The New York Times reported on Sunday that Frank Carone, a longtime adviser to Adams and chair of his campaign, planned to start working for Cuomo’s campaign or one of the PACs supporting him.

We’ll get an update on the last month of Adams’ fundraising and spending in the coming days, as the next filing deadline is Friday, Oct. 3.