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Montana voters approved Initiative 194 on Tuesday by a roughly two-to-one margin – about 65% in favor – becoming the first state to curb corporate political spending by voter initiative. The law bars corporations, unions and most nonprofits from spending money to support or oppose political candidates. The measure takes effect January 1 and is already facing a federal court challenge.
The “Montana Plan” takes aim at the legal framework of the Supreme Court’s 2010 Citizens United decision with a novel strategy: rather than restricting political speech directly, it strips Montana-chartered organizations of the corporate power to spend on elections. Groups that spend anyway would forfeit their corporate status, including limited liability. The law does not limit what individuals – including billionaires – can spend on their own.
Opponents say the measure reaches far beyond campaign ads. In a lawsuit filed in federal court after Tuesday’s vote, the Frontier Institute, Frontier Action Fund, Montana Family Foundation and the Montana Republican State Central Committee – represented by the Institute for Free Speech – argue the law is an unconstitutional speech prohibition. The plaintiffs say it could punish ordinary advocacy such as publishing research or issuing statements, and that it treats Montana organizations worse than out-of-state groups whose charters Montana cannot revoke.
The measure’s backers argue states remain free to define – and limit – the powers of the corporations they charter. If it survives the courts, the approach could spread: roughly 30 states are weighing similar strategies, and proponents have pledged to take the fight back to voters in 2028 if Montana’s Republican-controlled legislature amends or repeals the law. The vote follows a record $11.87 billion in national political advertising this election cycle, split about evenly between the parties, according to media tracking firm AdImpact.
The case, Frontier Institute et al v. Knudsen et al, is before the U.S. District Court for the District of Montana. Montana Attorney General Austin Knudsen’s office will defend the measure.
JBizNews Desk | Helena, Montana
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