Federal 1st Circuit Deems Maine Ballot Initiative Limiting Foreign Spending in State Elections is Likely Unconstitutional



The voices of 86% of Maine voters were silenced July 14th as a federal appeals court found a 2023 ballot initiative limiting political spending by foreign-owned corporations likely violates the Constitution’s right to free speech.

Question 2 passed with an astounding 86.4% support, after foreign corporations flooded Maine with advertising to get voters to approve a hydro electric transmission corridor from Canada through Maine.  The power companies and the Maine media which benefited from millions in advertising dollars sued on free speech grounds.  

Federal rules prohibit campaign contributions by foreign entities in federal elections, but don’t address state spending or ballot initiatives.  Question 2 prohibited foreign entities or subsidiaries with 5% or more foreign ownership from making contributions to candidates or ballot measures, required disclosure of advertising funding, and mandated disclosure whenever a foreign government attempted to influence an issue in Maine.

A three-judge panel agreed with the lower court’s finding that determining whether multinational corporation exceeded 5% foreign ownership would be hard to enforce.  It also agreed that the political spending limits would have a chilling effect on the willingness of corporations to speak out on issues. 

Another Maine money-in-politics case was decided July 15th, but this one is headed to the U.S. Supreme Court.  More on that in our next report.  

We have more at AmericanDemocracyMinute.org.  I’m Brian Beihl.

Today’s Links

Articles & Resources:

Maine Public Radio – Question 2 passes, banning foreign electioneering in Maine
State of Maine – §1064. Foreign government campaign spending prohibited
American Democracy Minute – After a Canadian Utility Spent $22 Million Dollars to Influence a Ballot Measure, Maine Voters Ban Foreign Money in State Elections
Maine Morning Star – First Circuit rules Maine ban on foreign government election spending likely unconstitutional
First Circuit Court of Appeals (via Election Law Blog) –  Opinion in CENTRAL MAINE POWER v. MAINE COMMISSION ON GOVERNMENTAL ETHICS AND ELECTION PRACTICES
Maine Morning Star – Another voter-backed Maine law regulating campaign finance halted, but the case is far from over

Groups Taking Action:

Maine Citizens for Clean Elections, League of Women Voters Maine, American Promise, End Citizens United, Represent.Us

Register or Check Your Voter Registration:

U.S. Election Assistance Commission – Register And Vote in Your State


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