Michigan voters will decide on November 3 whether to adopt Proposal 2, a measure aimed at restricting certain campaign contributions. This citizen-led initiative, referred to as “Money Out of Politics,” seeks to prohibit campaign donations from utility companies, contractors with government contracts exceeding $250,000, and individuals or organizations closely connected to these entities.
The proposal also introduces expanded disclosure requirements for political advertising donations, increasing transparency in campaign financing.
The ballot issue
According to Proposal 26-2, the key elements include:
The proposal would:
- Ban regulated electric and gas utilities, as well as contractors with annual government contracts over $250,000, from making direct or indirect contributions to candidates or officeholders who could influence their operations.
- Broaden regulations on political communication spending to include donor disclosure requirements for communications that identify candidates or ballot questions, even if they do not advocate a vote.
- Mandate disclosure of funding sources for online political communications.
Should this proposal be adopted?
The background
The initiative was spearheaded by the Michiganders for Money Out of Politics (MMOP) committee, which was formed in July 2025. The committee submitted a petition to amend the Michigan Campaign Finance Act in September 2025, presenting over 560,000 signatures to the Bureau of Elections in May 2026. The Michigan Board of State Canvassers certified the proposal two months later.
Before certification, the opposing group Protect MI Free Speech challenged the validity of the signatures, claiming the proposal infringed on business First Amendment rights. The issue was brought to the Michigan Supreme Court, which ultimately permitted the proposal to appear on the ballot in September 2026.
While the state House showed bipartisan support for the proposal, the Senate did not advance it, prompting the initiative to go directly to voters. Senate Majority Leader Winnie Brinks indicated the intent to let Michiganders make the decision.
Views on Proposal 26-2
Proponents, including MMOP, target companies like DTE Energy and Consumers Energy, which have faced criticism for recent rate hikes. In October, the Michigan Public Service Commission approved a $139 million increase for Consumers Energy, a figure significantly lower than what was initially requested.
MMOP Executive Board Co-Chair Christy McGillivray emphasized the support for the proposal, stating, “More than half a million people across the state signed our petition… It’s past time we end the corrupt pay-to-play system that dominates our politics.”
In response, both DTE Energy and Consumers Energy maintain compliance with current campaign finance regulations, asserting their participation in political processes is essential due to the impact of legislation on their operations. Consumers Energy spokesperson Katie Carey expressed concerns that the proposal would shift influence from local companies to out-of-state interests.
John Sellek, a spokesperson for the opposing committee, accused Proposal 2 of masking broader implications that could restrict the speech rights of Michigan residents, while allowing wealthy outsiders to continue influencing state policy.
The outcome of this ballot initiative could significantly impact campaign finance regulations in Michigan, with implications for both local businesses and political communications.
