Full Breakdown
Redefining Corporations: Hawaii Bill and Montana Initiative Target Corporate Political Spending
5/12/2026, 10:45:16 PM
Core Initiative
The Hawaii legislature approved a bill that would redefine corporations to bar election spending while preserving lobbying rights. The measure was sent to Democratic Governor Josh Green, who must decide by June 30. In Montana, a volunteer group is gathering signatures for a November ballot initiative—“The Montana Plan”—that would adopt the same corporate definition if voters approve it.
Background & Data
The 2010 *Citizens United* decision removed limits on corporate election spending, enabling unlimited contributions by corporations, unions and dark-money nonprofits. OpenSecrets recorded over $4 billion in outside political spending in the 2024 federal elections, including a record $1.9 billion from dark-money groups. At least 14 states have introduced similar corporate-redefinition bills. The spending surge has benefited candidates from both major parties.
Official Statements & Criticism
Tom Moore, senior fellow, calls the proposal a “genuinely new approach” grounded in corporate law that would face court testing. Sen. Karl Rhoads (D-Hawaii) says the bill gives a “small state” a chance to make national waves. Anne Lopez (D-Hawaii) warns defending the law would be “difficult and costly.” FEC member Bradley Smith argues lower courts will reject measures that try to “ignore the substance of a Supreme Court ruling by semantic lawyerly tricks.” Critics fear corporations could relocate and note that wealthy individuals, not corporations, remain the primary source of political funds. Montana’s Supreme Court allowed the ballot initiative to proceed despite a single-subject challenge.
On-the-Ground Activity
Montana volunteers have begun collecting signatures, reporting strong public resonance. In Hawaii, lawmakers and activists posed for a photo after the bill’s introduction at the state capitol, signaling local momentum. Volunteers say the issue resonates because citizens “live it” in their daily experience.
Conflicting Views & Gaps
Supporters claim the reforms will curb corporate influence, yet analysts note that wealthy donors such as Elon Musk still dominate political spending, and no data yet show how a corporate-redefinition law would affect election outcomes. Empirical studies are lacking.
Verbatim Quotes
- “This is a genuinely new approach to getting Citizens United out of America’s politics that is based on absolutely foundational corporation law,” — Tom Moore, senior fellow, Center for American Progress
- “This is an instance where a small state has a chance to make big waves on the national scene,” — Sen. Karl Rhoads, D-Hawaii
- “It really resonates with citizens,” — Jeff Mangan, former Montana commissioner of political practices
- “The mistake I think supporters of this are making is thinking you can ignore the substance of a Supreme Court ruling by semantic lawyerly tricks,” — Bradley Smith, former FEC member
What’s Next
Governor Josh Green must announce his decision by June 30, and the Montana ballot will appear in the November 2026 election. Both measures are expected to face immediate legal challenges that could reach the Supreme Court. If a state wins a court battle, the decision could reshape national campaign-finance rules.
