Reforms in campaign finance significantly impact political competition by altering the dynamics of funding and electoral strategies. By imposing stricter regulations on campaign contributions, these reforms aim to reduce the influence of money in politics, ensuring a more level playing field. This can encourage emerging candidates and smaller parties to compete effectively, potentially leading to a diversified political landscape. However, limiting funds can also hamper candidates' ability to reach voters, affecting their visibility and the overall voter engagement. Thus, campaign finance reforms are crucial in defining the competitive nature of elections and maintaining a healthy democracy.