California Democratic Governor Gavin Newsom on Thursday signed into law two measures aimed at limiting the influence of wealthy donors in California elections and guarding against efforts designed to manipulate voter participation, including “election sweepstakes.”
Why It Matters
The legislation follows concerns raised during the 2024 election cycle, when Elon Musk—billionaire and former senior adviser to President Donald Trump—drew scrutiny for promoting a $1 million sweepstakes that critics said blurred the line between campaign activity and commercial promotion, fueling calls for stronger shields against election interference.
Musk promoted the sweepstakes in seven battleground states—Pennsylvania, Georgia, Nevada, Arizona, Michigan, Wisconsin and North Carolina—asking voters to sign a petition to support free speech and Second Amendment rights in exchange for daily prizes until Election Day 2024.
Musk has continued to face pushback, with voters suing him in August under claims that he defrauded them with the sweepstakes. A federal judge ordered that Musk must face a proposed class-action lawsuit, with plaintiffs saying the tech mogul misled them into signing the petition and providing personal information.
After the election, Musk’s lawyers admitted that the prizes were not given out at random but selected in advance.
What To Know
Newsom wrote on X, “Today, I’m signing legislation to safeguard our elections and the voice of every voter. It’s now illegal to use contests or payments to get people to register to vote. And in the 2026 election, voters have the chance to repeal our state’s ban on the public financing of elections.
In a separate post, he wrote, “Attempts by billionaires and outside actors to sway elections through unethical means undermine our democracy and civic participation. California will not sit idle as our democracy is attacked.”

What Are Senate Bills 398 and 42?
The bills aim to reform campaign finance limitations, specifically in response to Musk’s voter lottery.
S.B. 398 makes it a crime to provide payment based on voting or voter registration, with a fine of up to $10,000 and/or imprisonment for up to three years for a person “to knowingly or willfully pay or offer to pay money or other valuable consideration to another person with the intent to induce the person to vote or to register to vote, or where the payment is contingent upon whether the person voted or the person’s voter registration status.”
S.B. 42 is a measure that will appear on the November 2026 ballot, seeking to repeal a ban on public financing of elections in California so that cities and counties can create programs for public funding and reduce the reliance on millionaires and billionaires.
Current legislation allows charter cities Los Angeles, Long Beach, Oakland, Berkeley and San Francisco to create publicly financed programs, but that could apply to the wider state if passed.
California State Senator Tom Umberg, a Democrat, proposed both bills in order to commit the state to “fair, transparent, and accessible elections.” Fellow Democrats State Senator Ben Allen and California Assemblymember Alex Lee joined Umberg in proposing S.B. 42, while Democratic State Senator Josh Becker joined him in proposing S.B. 398.
Can Gavin Newsom Run for Governor in 2026?
Due to term limits, Newsom cannot seek reelection in 2026, having served two full terms in his position. This opens the pathway for him to pursue a 2028 presidential bid, with candidates likely to announce their intent to run in 2027 as they gear up for respective party primaries.
Newsom has tried new approaches to voters and political issues, like launching a podcast and speaking with conservative media figures including the late Charlie Kirk—who appeared in the first episode that aired in March this year—in an effort to reach across the aisle and start a national bipartisan dialogue. Newsom also has allowed his press team to imitate Trump in messaging, telling reporters that he doesn’t write the posts but he signs off on them.
These efforts have given rise to speculation he is likely to seek a presidential bid in 2028.
What People Are Saying
Newsom, in a statement: “California is the most diverse state in the world’s most diverse democracy. Right now, our founding ideals and values are being shredded before our eyes in Washington D.C., and California will not sit idle. These new laws further protect Californians’ voices and civic participation in what makes our state and our country great.”
Umberg, in a statement: “California has sent a clear message: our democracy belongs to the people. With SB 398 and SB 42, we are protecting voters from manipulative schemes and empowering communities to decide how campaigns are financed in our state. These laws reaffirm California’s commitment to fair, transparent, and accessible elections.”
Update 10/2/25, 3:45 p.m. ET: This article has been updated with additional information, context and comment.
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