Easily returned in the 1987 election, Fulton remained in cabinet in the restructured portfolio of Ministry of Transportation. In June 1989, Fulton was implicated in the Patti Starr affair. Starr, who was head of the National Council of Jewish Women, misused her position by having the organization make political contributions to the riding associations of prominent Liberal MPPs. Fulton's riding of Scarborough East was among those who received an illegal contribution. On August 2, when Peterson shuffled his cabinet in the wake of the scandal, Fulton was not included.