In November 2023, Maine voters passed by a historic and resounding margin (86%) a ballot measure prohibiting foreign government-influenced corporations from unlimited spending in elections. That measure, codified under Maine law as 21-A M.R.S. § 1064, bans corporate political spending from foreign government-influenced corporations, defined as entities with a foreign government investor owning 5% or more of corporate stock – a threshold at which a foreign government can influence corporate governance and decisions.

Just before the law went into effect, the District Court of Maine temporarily blocked the law after a small group of corporations, press organizations, and some voters filed a challenge against it. The state swiftly appealed, seeking to vacate the district court’s ruling. The matter is currently pending before the U.S. First Circuit Court of Appeals.

Free Speech For People filed an amicus brief in each of the lower and appellate court proceedings, and it will continue to support the state as it defends the law.

Key Facts

Caption Central Maine Power Company v. Maine Commission on Governmental Ethics and Election Practices
Court US Court of Appeals for the First Circuit
Docket No.
24-1265
Status Appeal Filed
Plaintiffs Central Maine Power Company et al
Defendants Maine Commission on Governmental Ethics and Election Practices et al

Background

The 2016 election showed that foreign interference in our elections is a serious problem. The news that at least one Russian company bought political ads on Facebook shows one way that foreign interests can use corporations to influence elections. But Facebook and Twitter are not the only way that foreign interests can use American companies to influence U.S. elections.

Under current law, it is illegal for a foreign government or individual to spend money to influence state elections. The Supreme Court has upheld this law. But there is a loophole in the current law: if a corporation is registered in the United States, but it has significant foreign ownership, it can still spend money, or launder the money through a “super PAC,” to spend it in state and local elections.

In November 2023, Maine voters passed by a historic and resounding margin (86%) a ballot measure prohibiting foreign government-influenced corporations from unlimited spending in elections. That measure, codified under Maine law as 21-A M.R.S. § 1064, bans corporate political spending from foreign government-influenced corporations, defined as entities with a foreign government investor owning 5% or more of corporate stock – a threshold at which a foreign government can influence corporate governance and decisions.

On the eve before the law was set to go into effect, the District Court of Maine temporarily blocked the law after a small group of corporations, press organizations, and some voters filed a challenge against it. The state swiftly appealed, seeking to vacate the district court’s ruling. The matter is currently pending before the U.S. First Circuit Court of Appeals.

Free Speech For People filed an amicus brief in each of the lower and appellate court proceedings, and it will continue to support the state as it defends the law.

Learn more about challenging foreign influence in elections

Testimony in Support

Major Developments and Documents