Politics1 min read

Montana votes to ban corporate political money. Next stop? Probably the Supreme Court

By · Published by Everything Blog

In short

The newly approved policy penalizes corporations, unions, and nonprofits that fund election efforts by removing state-granted protections like limited liability for shareholders. While targeted organizations face severe operating risks for political spending, the rules explicitly permit political committees and wealthy individuals to spend personal fortunes directly. The measure is slated to take effect on Jan. 1 amid anticipated legal battles over First Amendment rights.

Key points

  • The policy attempts to bypass federal Citizens United precedent by targeting state-derive…: The policy attempts to bypass federal Citizens United precedent by targeting state-derived corporate powers rather than speech directly.
  • Wealthy individual donors, political committees, and news commentary remain fully exempt…: Wealthy individual donors, political committees, and news commentary remain fully exempt from the newly enacted spending prohibitions.
  • Implementation on Jan. 1 faces imminent threats from constitutional court challenges and…: Implementation on Jan. 1 faces imminent threats from constitutional court challenges and Montana's Republican-controlled state legislature.

Sources checked by our analysis pipeline: 1

Imagine a corporation wants to spend $10 million to defeat a political candidate. Under the Supreme Court's landmark 2010 Citizens United ruling, it can spend as much as it wants provided it doesn't coordinate with the candidate's campaign.

On Tuesday, Montana voted to change that.

In a state President Donald Trump won by nearly 20 points in 2024, roughly 65% of Montanans voted to approve Initiative 194 – the "Montana Plan" – embracing a novel legal strategy to curb corporate political spending. If states cannot restrict political speech under Citizens United, can they instead strip corporations of the power to spend money on elections?

The vote follows a record $11.87 billion in political advertising nationwide this election cycle that was split about evenly between the two parties, according to media tracking firm AdImpact.

The voter-approved measure is set to become state law on Jan. 1 in a state where voters can make law via ballot initiatives. Montana's Republican-controlled legislature could amend or repeal it, though if that happens, proponents have pledged to take the fight back to voters in 2028.

Politics