ALBANY, N.Y. – Former Republican vice presidential candidate Sarah Palin has endorsed a third-party candidate over the GOP-backed contender in New York's congressional special election, saying her own party has abandoned its core values.

The former Alaska governor, who was Arizona Sen. John McCain's running-mate last year, said Thursday she was backing Conservative Party candidate Doug Hoffman over Republican Assemblywoman Dierdre Scozzafava in the 23rd Congressional District race.

Palin said Hoffman, a businessman, stands for Republican principles — smaller government, lower taxes and a commitment to individual liberty — and that Scozzafava is more aligned with Democrats...