Hawaii's new corporate-spending ban faces First Amendment challenge in court

Act 11, signed by Governor Josh Green, removes the ability of most corporations in Hawaii to contribute money toward elections, ballot initiatives, or constitutional amendments, leaving only PACs, political parties and candidate committees exempt. The nonprofit Grassroot Institute of Hawaii, with support from the Institute for Free Speech, has sued the state, seeking to block enforcement and to have the law declared unconstitutional under the First and Fourteenth Amendments.

Critics such as Owen Yeates say the measure is vague and ignores decades of Supreme Court rulings that treat corporations as vehicles for individual speech. Proponents, including Tom Moore of the Center for American Progress, argue the law merely revokes a state-granted power rather than restricting protected speech. The Hawaii Attorney General’s office warned that the statute likely constitutes a content-based restriction, potentially violating the Constitution. If upheld, the law would take effect on July 1, 2027, reshaping how corporate money can influence state politics.