Maine Referendum Limiting Foreign Influence in Elections Faces Legal Challenges

Two utilities and two media organizations file lawsuits against the law, which was approved by voters and closes a loophole in federal election law.

The Maine referendum, approved by voters on Nov. 7, 2023, closed a loophole in federal election law that allows foreign entities to spend on local and state ballot measures.
Two utilities, Central Maine Power and Versant, and two media organizations, the Maine Association of Broadcasters and Maine Press Association, have filed lawsuits against the new law, claiming it violates their free speech and imposes a censorship mandate on news outlets.
The law, which goes into effect on Jan. 5, 2024, bans foreign governments or companies with 5% or more foreign government ownership from donating to state referendum races.
The law was put on the ballot after a Canadian government-owned utility, Hydro Quebec, spent $22 million to influence a project in Maine.
Maine was the 10th state to close the election spending loophole when the referendum was approved.