Michigan Campaign Finance Measure Faces First Amendment Lawsuit

On November 3, Michigan voters approved Proposal 2, a statewide measure restricting political contributions by utilities and certain government contractors. Preliminary results showed nearly 3.5 million votes in favor, or 81%, with 88.9% of precincts reporting.

Michigan Voters Back Limits on Corporate Political Money

Michigan voters delivered strong support for Proposal 2 on November 3, with preliminary results showing 81% in favor. The measure targets political contributions from regulated utilities and contractors with more than $250,000 in annual government contracts, along with certain connected parties.

Supporters say the restrictions address a system in which corporate donors can gain influence over policy while ordinary voters struggle to make their voices heard. Christy McGillivray, who co-leads the Michiganders for Money Out of Politics group, said the measure would curb the influence of utilities, health insurers and government contractors, and guard against pay-to-play politics.

The Mackinac Center for Public Policy filed suit in federal court on November 3, challenging two provisions. The complaint argues that reporting requirements for journalists, nonprofits and others who speak publicly about elected officials violate the First Amendment. The group is asking the court to pause enforcement while the case proceeds.

The lawsuit puts free-speech claims against a voter-approved effort to limit corporate political influence. Supporters argue the restrictions are needed to prevent large contributions from drowning out voters; the case will test whether the challenged provisions can stand.

Lawsuit Challenges Michigan’s New Political Speech Restrictions

Michigan voters approved Proposal 2 on November 3, but the measure’s new limits on political giving immediately faced a constitutional challenge. Preliminary results showed 81% support, with nearly 3.5 million yes votes counted and 88.9% of precincts reporting.

The Mackinac Center for Public Policy filed suit in federal court that night, challenging two provisions. The complaint says the rules require journalists, nonprofits and others to report activity when speaking publicly about elected officials, burdening protected speech and raising privacy concerns. The center is asking the court to suspend enforcement while the case moves forward.

Proposal 2 bars regulated utilities from making political donations and restricts contributions from contractors with more than $250,000 a year in government contracts, as well as certain connected parties. The lawsuit argues that a measure intended to regulate political money reaches into public discussion about officials and risks government oversight of speech.

Supporters say corporate contributions can steer policy and drown out ordinary voters, and argue the restrictions will curb pay-to-play politics. The case now puts that accountability goal against the First Amendment rights of people and organizations seeking to speak publicly about elected officials.