Hawaii and Montana Restrict Corporate Political Spending

The states of Hawaii and Montana are implementing a legal strategy called the Corporate Power Reset to restrict the ability of corporations, trade associations, nonprofits, and unions to influence elections. This approach utilizes the reserved powers doctrine, which posits that since states grant corporate powers through statute, they may also revoke the power to engage in political activity. This challenges the precedent established by the 2010 Supreme Court ruling in Citizens United.

Hawaii has already enacted a law defining corporations as possessing artificial-person powers, effectively prohibiting them from engaging in election or ballot measure activity. Montana is pursuing a similar goal through a citizen's initiative on the November ballot that would ban organizations from contributing anything of value to candidates, political parties, or state and local ballot issues.

The Grassroots Institute of Hawaii, supported by the Institute for Free Speech, has sued the state of Hawaii. The plaintiffs argue that these restrictions constitute censorship and violate First Amendment rights. Proponents of the strategy, including the Center for American Progress, maintain that the moves are a redefinition of corporate power rather than a regulation, intended to reduce the impact of dark money in politics.