A Michigan-based nonprofit organization sued officials over the state’s just-passed campaign finance proposal on Nov. 3, calling it an “alarming and far-reaching law” that violates the First Amendment.
The proposal bans Michigan’s regulated electric and gas utilities and other organizations with annual state contracts of at least $250,000 from "making direct or indirect campaign contributions to those who run for or hold offices that impact them" in Michigan. It also expands campaign finance regulations on political communications to “apply to communications clearly identifying candidates or ballot questions, even if they do not expressly advocate voting for/against them.”
The Mackinac Center for Public Policy sued Michigan Secretary of State
Jocelyn Benson, who is running as the Democratic candidate for governor, and state Attorney General Dana Nessel in U.S. District Court for the Western District of Michigan. The Institute for Free Speech, which is representing the organization in the case, said in a Nov. 3 news release that the new requirements could hamper news and nonprofit organizations by requiring them to “file reports with the state and disclose their activity when they speak to the public about elected officials.”
The Institute for Free Speech also said the rules' lack of a specific exemption for news coverage could have “disastrous results for media, as nonprofit news outlets, independent journalists and podcasters potentially face burdensome reporting requirements and donor disclosure mandates simply for discussing candidates during election season.”
The lawsuit said the Mackinac Center’s communications would likely be considered “electioneering communications” and/or “expenditures” under the law. It would “thus be required to either refrain from speech that could fit these vague standards or face the burdensome reporting requirements that apply to political committees.”
Michiganders for Money Out of Politics, the grassroots organization behind the proposal, has characterized it in part as a measure to prevent pay-to-play schemes. The group’s campaign manager, Maura Cowley, said she was not surprised by the lawsuit in a statement shared with USA TODAY.
“Tonight, Michiganders spoke loud and clear, voting to pass Proposal 2 with an overwhelming majority and delivering a resounding mandate to end pay-to-play politics and put power back where it belongs – with the people,” Cowley said. “The bottom line is that we are confident Proposal 2 will withstand legal scrutiny, and we were fully expecting and are prepared to take on this challenge.”
USA TODAY reached out to Benson and Nessel’s respective offices for comment.
Contributing: Arpan Lobo, Detroit Free Press
BrieAnna Frank's role covering First Amendment issues at USA TODAY is made possible by a collaboration among Freedom Forum, Journalism Funding Partners and the USA TODAY Network. Freedom Forum does not provide editorial input. Reach BrieAnna at bjfrank@usatoday.com and @brieannafrank on X and Bluesky.
This article originally appeared on USA TODAY: Michigan's Proposal 2 violates First Amendment, lawsuit alleges













