Judge Weighs Grassroot Institute's Challenge to Hawaii's Corporate Spending Ban

In Honolulu, U.S. District Judge Leslie Kobayashi told lawyers she is inclined to recognize the Grassroot Institute of Hawaii’s standing to challenge Act 11, the state’s pioneering ban on corporate election spending set to take effect in July 2027. The judge suggested the law could limit political speech, while the state argued the nonprofit cannot demonstrate that its activities are covered by the statute. Deputy Solicitor General Ewan Rayner contended Grassroot’s advocacy largely occurs before measures are certified and falls under news-commentary exemptions, citing past letters and blog posts.

Grassroot’s attorney Owen Yeates countered that the organization’s events, mailings, and fundraising clearly constitute spending on certified measures. Kobayashi considered dismissing the case without prejudice to let the plaintiffs specify the expenditures in question. The case joins a separate federal challenge by the U.S. Chamber of Commerce, highlighting broader disputes over the reach of corporate political speech.