Energy Giants and Think Tank Sue to Block Michigan Campaign Finance Law
Federal courts in the Western District of Michigan now face two challenges to the new ballot measure, which passed with 80% support on Tuesday.
By Chioma Brooks ·
Two separate lawsuits were filed in federal court in the Western District of Michigan on Monday to block Proposal 2, the campaign finance law that voters approved on Tuesday with more than 80% of the vote. The measure, titled Michiganders for Money Out of Politics, is set to take effect by December 3, 2026, unless a judge intervenes.
The law restricts campaign spending by regulated electric and gas utilities, contractors holding government contracts over $250,000 annually, and entities with substantial ties to those firms. It also imposes donor reporting requirements on organizations deemed to be making electioneering communications or campaign expenditures.
The first challenge comes from the Mackinac Center for Public Policy, a free-market think tank. The group argues the law is too vague, making it difficult for organizations to know which statements trigger financial disclosure rules. The suit claims this uncertainty creates a chilling effect on protected speech.
Patrick J. Wright, vice president of the Mackinac Center Legal Foundation, said Michiganders should not face fines or jail time for discussing politicians or policy. He stated the rules threaten voter access to information and violate the privacy of supporters.
The second lawsuit was filed by a coalition of major energy companies, including CMS Energy, Consumers Energy, and DTE. Their legal team argues the law targets specific speakers based on viewpoint. They contend there is no evidence of quid pro quo corruption in Michigan’s utility sector, noting the absence of scandals or exchanges of official acts for money.
Samuel Bagenstos, a University of Michigan law professor and attorney for the ballot measure, expressed confidence that the defense will hold up. He noted that the proposal was drafted with existing judicial decisions in mind. Maura Cowley, the campaign manager for the Michiganders for Money Out of Politics campaign, called the legal challenges expected. She said the corporations funding the opposition had prepared for litigation since the measure first qualified for the ballot.
Both suits were filed in the same federal district, setting the stage for a rapid legal battle before the December 3 implementation date. The energy companies and the Mackinac Center both seek to prevent the new reporting and spending bans from taking effect.
