Out-of-state law firms have significantly boosted the campaign contributions of two Democratic candidates running for statewide offices in Oregon. Both Dan Rayfield, the Democratic nominee for attorney general, and Elizabeth Steiner, the Democratic nominee for treasurer, have received substantial donations from law firms headquartered on the East Coast. These firms specialize in class-action lawsuits, which Oregon can file due to its unique position. The Oregon Department of Justice and State Treasury have the authority to choose which law firms represent the state in such cases, leading to these large donations from out-of-state firms. While neither candidate responded to requests for comment, they have previously stated that they would accept money from out-of-state firms while ensuring transparency and avoiding conflicts of interest.
The donations from out-of-state law firms account for a significant portion of the money raised by both Rayfield and Steiner this year. Approximately 23% of Rayfield’s campaign funds and 10% of Steiner’s have come from these law firms. The firms include New York-based Labaton Keller Sucharow and Delaware-based Grant & Eisenhofer, which represent state pension funds that often file suits to protect retirees’ investments from corporate misdeeds impacting stock values. Oregon’s $94.5 billion pension fund puts the state in a strategic position to act as a central plaintiff in such cases. Unlike some other states, Oregon does not have laws preventing public officials from accepting campaign contributions from entities seeking work potential conflicts of interest may arise.
In the past, Rayfield expressed concerns about accepting money from out-of-state law firms, suggesting that it could raise questions about credibility and integrity in decision-making processes. However, he has since changed his stance and is now accepting the donations. If elected, Rayfield has promised to ensure transparency in the selection of law firms hired by the state. Similarly, Steiner has defended her acceptance of campaign contributions from securities litigators and other sources, emphasizing the importance of recusing herself from significant decisions involving these donors. Both candidates have outraised their Republican opponents in campaign funds this year.
Campaign finance reform legislation passed earlier this year, with support from both Rayfield and Steiner, will limit individual and corporate contributions to statewide candidates starting in 2027. Under this law, entities can only donate up to $3,300 per election cycle to a statewide candidate. This change may signal the end of large donations from out-of-state law firms to Oregon’s statewide candidates in the future. The law aims to reduce the influence of money in politics and promote a fairer and more transparent electoral process. Both Rayfield and Steiner have supported this reform, indicating a broader commitment to campaign finance transparency and accountability in Oregon.
