LANSING, November 6, 2026 — Michigan’s largest utilities are suing to block a voter-approved law that bans their political donations, arguing it violates their constitutional rights. The move sets up a legal battle over campaign finance reform in a key battleground state.
Utilities Challenge Voter-Approved Ban
DTE Energy and Consumers Energy filed a federal lawsuit Thursday, two days after Michigan voters overwhelmingly approved Proposal 2, known as the “Money Out of Politics” measure. The law, backed by 80% of voters, prohibits direct or indirect political contributions from utilities and companies with over $250,000 in state contracts, along with their employees and close associates.
Legal Arguments on Free Speech
The utilities argue the ban violates their First Amendment rights to free speech and association, as well as the Fourteenth Amendment’s due process clause. In their complaint, they claim the law forces them to choose between surrendering their political rights or facing penalties. Consumers Energy stated the proposal “unfairly targets” Michigan businesses and their employees, while DTE called it an attack on the free speech rights of its 10,000 Michigan-based workers.
Broader Implications for Campaign Finance
The case has broader implications for campaign finance reform efforts nationwide. Supporters of Proposal 2 say it will curb corporate influence in state politics, while opponents argue it stifles legitimate political participation. The Mackinac Center for Public Policy, a conservative group, has also sued, calling the measure a “Trojan horse” that threatens free speech through expanded reporting requirements.
Next Steps in Legal Challenge
The utilities are seeking an injunction to block the law’s enforcement. The case is before the U.S. District Court for the Western District of Michigan, with a hearing expected soon. Absent court intervention, the law is set to take effect by December 3, 10 days after Michigan’s election results are certified.
“This law makes it harder for people and less safe for people to dissent and express their mind,” said Patrick Wright of the Mackinac Center. Meanwhile, Maura Cowley of the Michiganders for Money Out of Politics campaign called the lawsuit “no surprise,” vowing to defend the measure.
Sources
- DTE, Consumers sue to block ‘money out of politics’ proposal approved by voters – Bridge Michigan
- Consumers Energy, DTE sue to block Michigan's new voter-approved 'Money out of politics' campaign law
- Mich. Voters Ban Political Spending by Utilities, Others; Conservative Group Sues
- Consumers Energy, DTE Energy file federal lawsuit to block Proposal 2
- Consumers Energy, DTE Energy release statements following lawsuits over Proposal 2
Photo: WeaponizingArchitecture (CC BY-SA 4.0)
