Gergely Karácsony, the mayor of Budapest, has found himself at the center of scrutiny regarding his campaign financing, particularly concerning connections with organizations funded by the United States Agency for International Development (USAID) and other foreign entities.

A recent proposal put forth by Anna Szepesfalvy, a member of the ruling Fidesz party, requests a formal report from Karácsony on any contractual relationships established between the Budapest Municipality and USAID-funded organizations from November 5, 2019, to February 26, 2025. The proposal calls out specific civil organizations linked to a controversy surrounding USAID, many of which reportedly had cooperation agreements with local councils during the examined timeframe.

Further revelations indicate that DatAdat, a company that assisted Karácsony’s campaign during the 2019 municipal elections, had prior engagement with opposition parties during the 2022 parliamentary elections.

It was reported that Action for Democracy, a group led by Péter Márki-Zay's Everyone's Hungary Movement, allocated 1.4 billion HUF (approximately $3.8 million USD) to DatAdat, which operated as a social media agency and consultancy.

In 2024, the Sovereignty Protection Authority unveiled insights into a contract proposal from the Estonian affiliate of DatAdat intended for Karácsony’s campaign.

The focus of this collaboration involved identifying potential undecided voters, categorizing them for targeted election outreach which included mass SMS campaigns and communications through platforms like Facebook Messenger.

A statement released by the Sovereignty Protection Authority claimed that an international network, aiming to influence the 2022 Hungarian elections, also had connections to Karácsony’s 2019 campaign.

This network's activities are alleged to violate Hungary's national sovereignty, with well-known donor George Soros identified as a significant contributor.

In a recorded conversation aired in March 2022, Ádám Ficsor, co-owner of DatAdat, acknowledged their involvement in ensuring victory for numerous opposition candidates during the 2019 elections, claiming to have worked on twelve campaigns, all of which resulted in winning candidates.

The news portal EzaLényeg, which has been described as a propaganda outlet, is also reported to have contributed to Karácsony’s 2019 election bid by disseminating strategically-targeted messages dressed as articles, resulting in significant financial backing.

In terms of alliances within Karácsony’s administration, David Korányi, who has a history of advising former Prime Minister Gordon Bajnai, was appointed in January 2020 as the chief diplomatic advisor.

Korányi later founded Action for Democracy, which funded opposition campaigns during the 2022 elections, funneling significant amounts to DatAdat and the media outlet EzaLényeg.

The reconnaissance further highlighted that Action for Democracy has connections to the National Endowment for Democracy (NED), an American organization intertwined with the American political landscape, often associated with efforts to promote democracy abroad.

In acknowledgment of his supporters, Karácsony paid tribute to them during his speech at the Budapest Forum held at the Central European University, founded by Soros.

The event also included representatives from NED and the German Marshall Fund, entities recognized for their involvement in left-leaning campaign financing.

Recent statements from Korányi have also indicated concerns regarding U.S. foreign aid policies, particularly during the Trump administration, which included significant budget freezes affecting aid frameworks.

His commentary pointed to larger geopolitical implications and emphasized the need for civil society to actively engage in global issues beyond U.S. borders.