Mackinac Center Sues to Halt Michigan's New Campaign Donation Rules

On the night Michigan voters approved a sweeping change to campaign finance rules, a legal challenge was already being drafted. The Mackinac Center for Public Policy filed a federal lawsuit on Nov. 3, just hours after polls closed, seeking to block key requirements of Proposal 26-2. The suit names Michigan Secretary of State Jocelyn Benson and Attorney General Dana Nessel as defendants in the U.S. District Court for the Western District of Michigan.

Voters approved the measure, dubbed "Money Out of Politics," by a wide margin. With 95% of precincts reporting, 3,471,071 residents voted in favor while 809,414 voted against. This results in an approval rate of 81.1%. The proposal bans utility companies, contractors holding government contracts exceeding $250,000 annually, and associated individuals from donating to political parties or candidates.

The Mackinac Center, a nonpartisan nonprofit based in Midland County, argues the law goes beyond regulating donations. It claims the measure targets anyone who spends money speaking about public policy if that speech mentions an elected official. The complaint describes this as an alarming and far-reaching law that violates the First Amendment.

The organization, which advocates for free markets and limited government, says its own advocacy work could trigger new reporting requirements. Under the proposal, entities engaged in what is defined as electioneering communications must report who they are discussing, how much they spend on that speech, and sometimes who their donors are. The Mackinac Center notes that its content could be construed as supporting or opposing a candidate, even when it has historically focused on issue-based advocacy.

The lawsuit also highlights that the proposal’s language appears to leave no exception for news organizations. The Institute for Free Speech represents the Mackinac Center in this case. The legal team is working against a strict timeline to ensure the court can rule before the law takes effect.

The Michigan State Board of Canvassers must certify the election results by Nov. 23. Proposal 26-2 becomes effective 10 days after that certification, setting a deadline of Dec. 3. The suit seeks to intervene before that date to prevent the new rules from taking hold.