A Reno mayor candidate kept old donations for her campaign. It opened a can of legal worms.

When Kate Marshall began fundraising in 2024 for a bid for Reno mayor, she had a leg up over the other candidates: about $116,000 in her campaign account from her time as the state's Democratic lieutenant governor. 

Keeping that money has kicked off a series of complaints to state election officials, most recently one last month from the Nevada Republican Party alleging to the secretary of state's office that she violated Nevada campaign finance law by accepting a $500 contribution in 2022 and not eventually draining her entire campaign account. The complaint has been frequently highlighted on social media by the party's endorsed candidate, George "Eddie" Lorton.

The saga highlights the complicated legal world surrounding what candidates for Nevada public office have to do with leftover campaign funds after they leave office.

For its part, Marshall's campaign is highly confident the complaint will be dismissed. A complaint with an identical allegation against her was closed earlier this year because it was made after a statute of limitations expired. The campaign has also argued the other allegation is likely to be tossed out because of a new Nevada law giving people in Marshall's position more time to dispose of unspent donations.

"I have acted with transparency at every step of the way," Marshall told The Indy. "I have had repeated complaints dismissed, but I am especially grateful for our state Legislature who cleared up this law in the 2025 session for all candidates."

Nevada GOP Chair Michael McDonald, who filed the latest complaint, did not respond to a request for comment. 

A separate complaint also alleged that Marshall violated the Hatch Act, which prohibits federal workers from engaging in certain political activity, after receiving a campaign donation while working at the White House during the Biden administration. But it was dismissed by the U.S. Office of Special Counsel last week.

The California Globe, a conservative outlet, first reported news of the complaints Wednesday. It did not mention the previous complaint or that the federal complaint has since been dismissed.

Holding onto campaign donations

It's common and largely legal for Nevada candidates to use money raised for another race in future elections. This cycle alone, multiple candidates for statewide office — including Assms. Joe Dalia (D-Henderson) and Sandra Jauregui (D-Las Vegas) — are using money previously raised for another office. Former Gov. Steve Sisolak (D) still has more than $127,000 in his campaign account.

But this situation is unique.

Marshall received a $500 donation in early 2022 from a Northern Nevada construction workers' union, which under Nevada law meant she was a "candidate." As required under Nevada law at the time, she was supposed to dispose of all the money in her campaign account if she did not appear on a ballot or file for office in the following four years. These requirements were established through a 2015 bill.

Marshall has not appeared on a Nevada ballot in that time frame, and she did not officially file to run for Reno mayor until March 2, 2026.

But a new law passed by the Legislature in 2025 made various changes to campaign finance law and the deadlines for candidates to use unspent dollars. It also said any former official with unspent contributions as of Oct. 1, 2025, has until 2029 to dispose of the money, giving Marshall's campaign confidence that the allegation will be dismissed.

"There are going to be people who are sort of stuck in a little bit of a gray area because they have campaign contributions, but the bill is not yet effective," Assembly Speaker Steve Yeager (D-Las Vegas), the bill sponsor, said during a hearing last year. "So, we wanted to essentially grandfather them in to give them the four-year waiting period."

Lieutenant governor-era donations

The other part of the GOP's complaint was identical to the one previously filed by Dan Huynhvo, a 25-year-old Reno Democrat. It centers on the fact that Marshall resigned as lieutenant governor in September 2021, triggering a Nevada law that requires the disposal of existing donations if certain requirements are not met. 

Under Nevada law at the time, officials who resign, are not candidates for another office and have not received contributions of at least $100 must dispose of all contributions by the 15th day of the second month after the resignation. For Marshall, this would have been in November 2021.

But the office of Secretary of State Cisco Aguilar (D), whose campaign gave $500 to Marshall in 2023, ruled it missed the deadline to file the complaint within three years. The complaint was filed in August 2025, more than four years after the time of the allegation.

"After a full review of the information provided and the relevant statutes, the SOS has determined that [the complaint] is untimely and cannot be pursued," a letter obtained by The Indy said.

Updated on 5/12/26 at 8:47 a.m. to clarify the donation to Marshall came from Aguilar's campaign.