Maine Voters to Decide on Banning Foreign Government Spending in State Referendums

Decision follows instance where a Canadian utility spent $22 million to fight state referendums on a hydropower transmission project; If passed, Maine would join nine other states in closing federal election law loophole allowing for foreign spending in local and state ballot measures.

Maine voters are deciding on a measure to close a loophole in federal election law that currently allows foreign governments to spend on state referendums; sparked by Canadian utility Hydro Quebec’s $22 million campaign against state referendums on a hydropower transmission project.
If approved, the law would prohibit foreign governments or companies with 5% or more foreign government ownership from funding future referendum campaigns, making Maine the 10th state to enact such a restriction.
The issue has gained traction in Maine following Hydro Quebec’s high-profile investment to protect a $10 billion project, with critics suggesting such financing represents monetary self-interest rather than grand geopolitical strategy.
A previous effort to pass the proposal in the Maine Legislature was vetoed by Democratic Governor Janet Mills, citing potential wider implications for Maine-based businesses and the risk of silencing “legitimate voices”.
The proposed law would impact utilities in Maine owned by foreign governments like Versant, owned by a Canadian government body, while leaving untouched foreign-based corporations without government ownership, such as Central Maine Power which is a subsidiary of a Spanish utility.