Michigan Voters Approve Ban on Contractor Political Spending
New rules bar companies earning over $250,000 in state contracts from donating to candidates, with enforcement beginning in 18 months.
By Larissa Shah ·
Michigan voters approved Proposal 2 on Tuesday, passing a measure that restricts the political spending of large government contractors and increases disclosure requirements for campaign finance.
The new law prevents specific businesses from making political contributions to state candidates and officials. These are companies that receive substantial state contracts. The initiative also mandates expanded disclosure rules for campaign finance reports.
Erik Shelley, director of direct action for Michigan United, confirmed the new threshold for restrictions. He stated that if a company makes a quarter of a million dollars in state contracts, it is prohibited from donating to state politicians.
Shelley described the vote as a major accomplishment for organizers. He said, “It really feels great to know that we can do these things.”
Detroit resident Damon Mailey supported the measure, stating, “I don’t think a public service should contribute to our democracy.” Lathrup Village resident Ed Blondin agreed, adding, “I think these big corporations contributing to campaigns has gotta stop.”
Utility companies responded to the results. DTE Energy issued a statement through Ryan Lowry, noting that the company supports its team members' right to participate in the political process. Lowry said, “We will continue to assess the proposal and determine the appropriate path forward.” Consumers Energy declined to comment.
Eric Walcott, a senior specialist with Michigan State University Extension, explained the timeline for enforcement. He said ballot proposals become law 10 days after election certification. The provisions within the law take effect 18 months after adoption. This gives state agencies about a year and a half to create the necessary processes and oversight mechanisms.
Walcott noted that monitoring compliance will likely rely on existing campaign finance reporting systems. He said, “As campaign finance reports are filed, it shouldn’t be too hard to kind of flag, are these people on this list contributing? If so, that’s a violation.”
The Mackinac Center for Public Policy has already filed a lawsuit challenging the initiative. The group argues that two specific provisions violate First Amendment protections. The legal challenge is proceeding before the law takes effect.
