A New York City law that greatly restricts campaign contributions from lobbyists and others doing business with the city does not violate the free speech or due process clauses of the U.S. Constitution, a federal appeals panel has held in a matter that could be destined for the U.S. Supreme Court.

The U.S. Court of Appeals for the Second Circuit, ruling on an issue never directly addressed by the Supreme Court, found that restrictions imposed on a particular group deemed to pose an elevated threat of actual or perceived corruption—namely, those with business interests before the city—survive constitutional scrutiny because they are narrowly drawn and address an actual or apparent problem.