When Zohran Mamdani stood before cheering supporters on election night to claim victory in New York City’s mayoral race, he promised to bring “a new era of honesty, fairness, and transparency” to City Hall.
Just two weeks later, that promise is under intense scrutiny.
A Washington-based campaign finance watchdog has filed two criminal referrals against Mamdani — one to the Department of Justice’s Criminal Division, and another to Manhattan District Attorney Alvin Bragg’s office — accusing the 34-year-old democratic socialist of accepting unlawful foreign campaign donations during his historic run for mayor.
The allegations, if proven, could represent one of the most significant violations of campaign finance law in New York City’s modern political history — and an early test of credibility for a leader who campaigned on cleaning up government.
The Watchdog Steps In
The complaints were filed by the Coolidge Reagan Foundation, a conservative nonprofit known for targeting what it calls “systemic corruption in campaign finance.” The foundation has previously filed complaints against Rep. Alexandria Ocasio-Cortez, Hillary Clinton’s 2016 presidential campaign, and the Democratic National Committee.
In its latest action, the group claims that Mamdani’s campaign “knowingly and repeatedly accepted” contributions from individuals living outside the United States — a potential violation of both the Federal Election Campaign Act (FECA) and New York Election Code.
“These are not isolated incidents or clerical errors,” said Dan Backer, a veteran campaign finance attorney and president of the Coolidge Reagan Foundation, in a statement provided to reporters.
“This was a sustained pattern of foreign money flowing into a New York City mayoral race — a clear violation of federal law and New York City’s campaign finance rules. Mamdani’s campaign was on notice for months that it was accepting illegal foreign contributions, and yet it did nothing meaningful to stop it.”
According to the Foundation, the complaint is based in part on data first uncovered by The New York Post earlier this month, which revealed that Mamdani’s campaign received approximately $13,000 in contributions from at least 170 donors residing overseas — including one from his own mother-in-law in Dubai.
The Legal Stakes
Federal law is unambiguous: it is illegal for foreign nationals to donate money to American political campaigns, whether at the federal, state, or local level.
The Federal Election Campaign Act explicitly prohibits any person from “soliciting, accepting, or receiving” contributions from individuals who are not U.S. citizens or lawful permanent residents. Violations can carry severe penalties, including hefty fines and potential prison sentences for knowing or willful violations.
“The law is crystal clear,” Backer said. “Foreign nationals may not participate in American elections, and that includes making contributions. Yet Mamdani’s campaign repeatedly accepted donations from individuals abroad — some even tied to regions and individuals openly sympathetic to hostile actors. Whether through negligence or intent, this conduct undermines the integrity of the democratic process.”
The Coolidge Reagan Foundation has called on federal and local prosecutors to open criminal investigations, subpoena campaign records, and determine whether the donations were part of a coordinated effort to funnel money into the campaign from overseas sources.
The group’s referral to the Justice Department’s Public Integrity Section specifically requests a probe into whether Mamdani or his campaign staff “knowingly accepted and failed to disclose” illegal contributions, which would elevate the matter from an administrative infraction to a criminal offense.
The Numbers Behind the Accusation
Campaign finance filings reviewed by several media outlets suggest that Mamdani’s campaign accepted roughly $13,000 from foreign contributors, spread across nearly 170 individual donations.
Those donors listed residential addresses in Australia, Turkey, France, Canada, Germany, and the United Arab Emirates, among other countries.
According to a National News Desk report, Mamdani’s campaign later refunded approximately $9,000 of those contributions, claiming that many had been flagged as potentially ineligible once the campaign’s internal audit began.
However, watchdog groups argue that the refunds came only after the issue was publicly exposed — not as a result of proactive compliance.
“The campaign can’t just say ‘we refunded it’ and make the issue disappear,” Backer said. “The law requires that campaigns have systems in place to prevent foreign contributions from being accepted in the first place. Refunding illegal money after being caught doesn’t erase the violation.”
The Campaign’s Response
In response to the controversy, Mamdani’s campaign issued a short written statement acknowledging that certain donations had been returned and that the team was “fully cooperating” with authorities.
“Our campaign has always strived to comply with both the letter and spirit of the law,” the statement read. “We have already refunded contributions from donors who were found to reside outside the United States, and we are reviewing all remaining transactions to ensure full compliance.”
Privately, campaign officials maintain that the issue has been blown out of proportion by politically motivated opponents.
“We’re talking about small-dollar contributions — mostly under $50 — from individuals who likely believed they were allowed to donate,” one senior staffer told reporters. “Many of them are U.S. citizens living abroad, not foreign nationals. We’re confident that, once reviewed, these allegations will be shown to be politically driven nonsense.”
A Gray Area — and a Political Minefield
Campaign finance law leaves little ambiguity when it comes to foreign money, but implementation can be complicated.
In practice, many Americans living abroad — including diplomats, students, and expatriates — legally contribute to U.S. campaigns using overseas addresses. Those donations are permissible as long as the donor is a U.S. citizen or green card holder.
Mamdani’s team argues that roughly $4,000 of the $13,000 in question came from Americans living overseas, which would make those donations legal.
However, the remaining funds — including one $2,100 contribution from Dubai-based investor Ada Diaz Ahmed, reportedly Mamdani’s mother-in-law — raise serious questions about the campaign’s vetting process.
Between September 8 and October 20, the New York City Campaign Finance Board (CFB) confirmed that Mamdani’s campaign refunded almost $4,000 from 67 donors residing outside the United States. But the board’s own spokesman, Daniel Kurzyna, acknowledged that additional foreign-origin donations might have slipped through.
“If the city’s campaign finance portal allowed foreign donations to be processed, that is a system issue the Campaign Finance Board must address,” Kurzyna said. “Any improper contributions will be returned.”
That admission has further complicated the narrative — suggesting not only potential errors by the campaign but also systemic flaws in the city’s own donation tracking systems.
Political Fallout
For a mayor-elect whose campaign was built on integrity and reform, the allegations come at a particularly sensitive moment.
Mamdani, who won on a promise to “make New York livable again,” has yet to be sworn in. His transition team has spent the past month preparing policy proposals on housing, childcare, and police reform — all of which now risk being overshadowed by a criminal referral that could take months to resolve.
Political analysts say the controversy could blunt his early momentum and give opponents — particularly in Washington — fresh ammunition.
“This is a major credibility problem for Mamdani,” said Dr. Lara Epstein, a political science professor at Columbia University. “Even if it turns out to be administrative sloppiness rather than intent, it undercuts the image of ethical leadership he’s tried to cultivate. And it hands his critics — especially Donald Trump — an easy talking point.”
Indeed, the story has already gained traction on conservative media outlets, where Mamdani is often portrayed as a symbol of “radical left” politics.
Fox News host Jesse Watters called the revelations “the latest example of socialist hypocrisy,” adding that “the same people who lecture everyone about democracy can’t even follow basic election laws.”
Trump himself weighed in on Truth Social late Tuesday, posting:
“The Socialist Mayor of New York caught taking money from FOREIGNERS — unbelievable! They call it ‘progressive,’ I call it ILLEGAL. The DOJ should move fast on this one!”
A Familiar Pattern in New York Politics
If Mamdani’s case moves forward, it will join a long list of campaign finance controversies that have rocked New York politics over the past two decades.
Former Mayor Bill de Blasio faced a federal probe in 2016 over alleged quid-pro-quo fundraising ties between developers and his nonprofit, though prosecutors ultimately declined to press charges.
In 2021, Eric Adams’s mayoral campaign was investigated for possible straw donations linked to foreign business interests; that case, too, resulted in no charges but led to significant reforms in the city’s vetting systems.
“These kinds of cases are incredibly difficult to prosecute,” said former Manhattan prosecutor Eli Rosenfeld. “You have to prove intent — that the campaign knowingly accepted foreign funds. But even if it’s not criminal, the reputational damage can be devastating.”
Rosenfeld noted that the Coolidge Reagan Foundation’s filing, while politically motivated, “shouldn’t be dismissed outright.”
“They’ve got experienced lawyers, and they know how to frame complaints that force regulators to take notice,” he said.
The Broader Political Context
The allegations against Mamdani come at a time when the intersection of money, politics, and foreign influence has become a national flashpoint.
In recent years, the Federal Election Commission (FEC) has investigated multiple cases involving foreign-linked donations funneled through U.S.-based shell entities — a growing concern as online fundraising platforms make small-dollar donations nearly instantaneous and borderless.
“Mamdani’s case may be local, but it touches on a global issue,” said campaign finance expert Meredith McGehee, former policy director at Issue One. “The digital age has blurred traditional safeguards. Anyone with a credit card, anywhere in the world, can click a button and send money into a U.S. campaign. That’s a regulatory nightmare.”
The FEC, which enforces federal campaign finance laws, is chronically understaffed and politically gridlocked, leaving much of the enforcement to watchdog groups and local agencies like New York’s Campaign Finance Board.
That vacuum creates opportunities for mistakes — and for political attacks.
The Man Behind the Movement
For Mamdani, the scrutiny is a painful irony. His campaign was built around rejecting big donors and corporate influence, relying instead on small contributions from everyday New Yorkers.
“I don’t take Wall Street money,” he often said on the trail. “Our campaign is powered by working people — not billionaires, not corporations, and not lobbyists.”
That populist message helped him unseat veteran rivals and become the face of a new progressive wave sweeping through New York politics. His victory speech — “This city belongs to its people again!” — was seen as a rebuke to decades of establishment politics.
Now, with allegations of illegal foreign money swirling, that same message has been turned against him.
“Taking donations from foreign nationals isn’t just unethical,” said New York Republican chair Ed Cox. “It’s hypocritical. You can’t campaign on transparency and then get caught breaking the law.”
What Happens Next
Both the Department of Justice and the Manhattan District Attorney’s Office have declined to comment on whether they plan to pursue the referrals.
If federal prosecutors take up the case, investigators would likely begin by subpoenaing the campaign’s donor database, transaction records, and correspondence with fundraising platforms.
They would also scrutinize whether any donations were made through proxy contributors, known as “straw donors,” who use U.S. addresses or accounts to conceal foreign origins — a method increasingly used in both federal and local elections.
If investigators determine that the campaign knowingly accepted such contributions, Mamdani and his treasurer could face felony charges under federal law. However, if the acceptance was deemed inadvertent or due to technical failure, penalties could be limited to fines or administrative sanctions from the New York City Campaign Finance Board.
“Intent is everything,” explained former FEC attorney Janet Harmon. “If this was deliberate, it’s a crime. If it was negligent, it’s still a violation — but a civil one. Either way, it’s not good for a sitting mayor or one about to be sworn in.”
Public Reaction
Reactions across the city have been polarized — much like Mamdani himself.
Supporters have rallied around him, calling the allegations a politically motivated attack designed to undermine a reformer before he even takes office.
“He’s being targeted because he threatens the system,” said Queens resident and campaign volunteer Nadia Patel. “The establishment — both Republican and Democrat — hates him because he’s not for sale.”
But critics, including several members of the City Council, say transparency demands accountability.
“Whether you’re a socialist or a centrist, the rules are the rules,” said Councilmember Robert Holden, a moderate Democrat. “We can’t tolerate foreign money in our elections, period. If mistakes were made, they need to be addressed publicly.”
The New York Times editorial board, in a cautious statement, urged patience but pressed for clarity:
“The public deserves full disclosure. The Mamdani campaign should release its donor list in full and cooperate completely with investigators. Sunlight is the best disinfectant.”
Damage Control — and Political Survival
Mamdani’s advisors are already strategizing how to contain the fallout.
According to sources close to the transition team, the mayor-elect plans to appoint an independent ethics counsel to review all campaign finance operations and recommend reforms to prevent similar issues in future elections.
He has also ordered a full external audit of the campaign’s finances, to be conducted by a third-party firm before his January 1 inauguration.
“These are precautionary steps,” said a senior aide. “We’re confident there’s no wrongdoing, but we want to set the highest standard for transparency.”
Whether those efforts will be enough remains to be seen.
“Even if he’s cleared, the narrative damage is done,” said political consultant Rebecca Katz, who advised Bill de Blasio’s 2013 campaign. “The first impression voters get of Mamdani as mayor is that he’s under investigation. That’s hard to shake.”
The Broader Implication: Trust in Politics
Ultimately, the Mamdani controversy underscores a deeper crisis of confidence in political institutions.
For decades, Americans have grown increasingly skeptical of politicians’ motives, especially when it comes to money. Every new scandal — whether proven or not — feeds that distrust.
“This isn’t just about one campaign,” said historian Julian Zelizer. “It’s about a public that no longer believes the rules are being enforced fairly. When you have accusations of foreign money, it amplifies that fear that democracy itself is being sold off piece by piece.”
Mamdani’s situation also serves as a warning for the new generation of digital-first campaigns that rely on small donors from across the globe. As fundraising moves online, the line between legitimate support and illegal influence becomes increasingly thin.
Conclusion: A Shadow Over City Hall
For Zohran Mamdani, the weeks ahead will test not only his political instincts but his moral compass.
If cleared, he could emerge stronger — a reform-minded mayor who faced scrutiny and proved his integrity. But if investigators find deliberate wrongdoing, his short time in the spotlight could end before his first day in office.
As one veteran political reporter put it:
“New York has seen mayors rise and fall on corruption before they even take the oath. Mamdani’s biggest challenge isn’t Trump, or the council, or the budget. It’s trust.”
And trust, in New York politics, is the one currency that’s always in short supply.
Adrian Hawthorne is a celebrated author and dedicated archivist who finds inspiration in the hidden stories of the past. Educated at Oxford, he now works at the National Archives, where preserving history fuels his evocative writing. Balancing archival precision with creative storytelling, Adrian founded the Hawthorne Institute of Literary Arts to mentor emerging writers and honor the timeless art of narrative.