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Montana passes I-194 to limit corporate spending on elections as other states take notice

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Montana voters have approved I-194, a measure taking aim at political spending by corporations and other organizations. The initiative may reverberate beyond Montana, as organizers from other states look at strategies for how they can implement a similar law.

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Montana passes I-194 on corporate spending as other states take notice

The effort, known as the Montana Plan, is drawing attention from people more than a thousand miles away, with Montana's approach helping to shape a broader national conversation about restricting corporate political spending.

"They're starting to be sort of this informal network of people who care about this particular bill," former Hawaii Sen. Karl Rhoads said.

In Hawaii, lawmakers have already passed a similar law. West of Montana, Oregon organizers are trying to put their own version before voters in 2028.

"Montana has given the nation a blueprint on how to go past this, and how to, you know, utilize grassroots energy," Jason Kafoury said.

Kafoury, an Oregon attorney with Kafoury and McDougal, says Montana's vote could provide momentum for similar efforts elsewhere.

So what makes I-194 different? Instead of simply limiting how much corporations can spend, it changes the powers Montana grants to corporations and other so-called "artificial persons," saying those powers do not include spending money to influence elections.

"Allows states' rights to determine what corporations have in terms of powers," said Russell Cleveland, executive director of the Montana Plan.

Supporters say that's an important distinction following the U.S. Supreme Court's Citizens United decision, which protected independent corporate political spending under the First Amendment.

But whether this new approach can survive a legal challenge is far from settled. Critics argue states cannot use their authority over corporations to sidestep First Amendment protections.

"Corporations are given powers by the state, not by the federal government. And so the Supreme Court would have to rule that," Cleveland said.

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Russell Cleveland speaks with MTN about the future of I-194.

That legal fight could determine whether the Montana Plan stays here or spreads much farther.

"It is a way for the states to get at what is a very difficult problem," Rhoads said.

The campaign signs may soon come down. But the fight over the idea behind I-194 could be just getting started.

Related: Debate over I-194 continues in Billings community as election draws near