HOUSTON — The Houston City Council advanced a proposal to repeal the city's campaign loan repayment caps and referred it to the Ethics and Governance Committee for further review. The measure, backed by Council Member Edward Pollard, would eliminate Houston's limits on how much candidates can repay themselves using campaign donations after loaning money to their own campaigns.

Houston's current ordinance caps reimbursements from campaign contributions at $75,000 for mayoral candidates, $15,000 for citywide candidates, and $5,000 for district council candidates. Campaign finance records show Pollard loaned his own campaign $1 million at a 0% interest rate.

Pollard argued during council discussions that the local rule conflicts with a 2022 U.S. Supreme Court ruling in Federal Election Commission v. Ted Cruz for Senate, which struck down a federal restriction on post-election loan repayments. "In 2022, the Supreme Court ruled that putting caps on campaign finance loan repayments was unconstitutional. It violated the First Amendment as it related to free speech. We currently have an outdated local ordinance that is in conflict with that ruling," Pollard said.

Houston City Attorney Arturo Michel echoed concerns about the ordinance's legal footing. "The language of our ordinance is similar to the federal regulation that Senator Cruz challenged under federal law. The memo I had written under the last administration and also the lawfulness memo addresses a concern that our ordinance may not be legally supported," Michel said.

Council Member Amy Peck raised reservations about a full repeal during the discussion. "My concern is that if we remove every single guard rail, we risk a system where only wealthy individuals can afford to run for office," Peck said. Peck suggested the city could explore alternatives that address constitutional concerns while preserving ethics safeguards, including stricter disclosure requirements and time limits for post-election fundraising tied to loan repayments.

Council Member Joaquin Martinez said council members are now taking a deeper look at Chapter 18 of the city ordinance governing campaign finance and ethics rules. The Ethics and Governance Committee is expected to continue reviewing the proposal and potential alternatives before any final action is taken by the city council.