Montana Voters Decide on Corporate Political Spending Ban

Montana voters will decide on Tuesday whether to approve Initiative 194, also known as the Montana Plan. The measure seeks to strip corporations, nonprofits, and trade associations of the power to spend money on political candidates or ballot initiatives.

Rather than banning political donations directly, Tom Moore, the legal theorist who devised the plan, argues the measure redefines the powers granted to artificial persons by the state. By limiting these powers to those that are necessary and convenient, proponents claim the initiative bypasses the Supreme Court's Citizens United ruling by utilizing corporate law instead of regulating First Amendment rights. Entities that violate the measure would forfeit state-granted privileges, such as limited liability.

Opponents, including former FEC chairman Bradley Smith, contend the measure is a semantic attempt to sidestep constitutional protections and will likely be struck down by courts. The initiative draws parallels to Hawaii's Act 11, a similar law currently facing federal lawsuits. If passed, the Montana Plan would take effect on January 1, 2027, pending potential legal challenges.